So you’ve heard about employee engagement and you know that it matters, but do you actually know how to engage your team? If your honest answer is “no” or “not really”, don’t worry you’re not alone.

It’s not uncommon for owners of startups and small businesses to feel unsure about employee engagement. (It’s not a skill set you’re likely to have based your business on, afterall.) But you need to get to grips with it sooner rather than later – because good candidates are now in the market for more than just a job and a salary. The best people want to work for companies that motivate them, and help them to grow and develop in their career. 

At Charlie, we know how important employee engagement is for productivity and employee retention, so we’re always innovating to make it easier and more tangible for small businesses. 

In my role as Product Manager at Charlie, and through hundreds of hours of customer interviews, I’ve learnt which employee engagement solutions work best. And I’ve built on that knowledge by researching what other companies on the market offer. 

A lot of that research is now in this guide. Here, you’ll find everything you need to know about the best employee engagement software for small businesses, so it’s a great place to begin.

Do small businesses need employee engagement software?

Let’s start with the basics… 

What is employee engagement software and do you really need it?

Employee engagement software are digital tools designed to help businesses increase job satisfaction, drive engagement, boost performance, and hold on to good people

Like most things in life, no employee engagement software is created equal — each delivers different benefits for different businesses. 

And if you’re a small business with fewer than 50 team members, it’s likely that having employee engagement software that’s separate from your HR software is going to be a bit too much. 

At this size, you want to be focusing on building really solid HR foundations through:

  • Consistent and effective performance management
  • Good people management
  • Great HR admin

As a business with up to 50 employees, it’s probably also going to be too costly to have a separate employee engagement platform. At your current size, it’s better and more beneficial to have everything you need in one platform.

This is one of the main reasons we’ve built Charlie in this way: we know the requirements and limitations of small businesses, so we’ve focused on building a complete HR solution that meets your very specific and unique needs. 

CharlieHR is an all-inclusive HR software — which means you get everything in one package, rather than having to pay separately for an employee engagement tool. You can automate all of your HR tasks for a fraction of the cost of obtaining separate software for performance management, engagement surveys and time off.

And because we know what it’s like as a small business (we’re one too!), we’ve made our pricing not only affordable but super transparent. You’ll always know if Charlie fits within your budget, and you can trial it for free for 7 days first to see how it works.

Start doing HR the small business way

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What’s the best employee engagement software for small businesses? 

To help you make the best and most informed choice for your business, let’s look at some of the most popular employee engagement software on the market today. I’ve researched all of these as part of developing our own engagement offer at Charlie. 

Keep reading to learn about employee engagement software Blink, Leapsome, CultureAmp, Hibob and Kudos:

  • Features offered 
  • What their customers say 
  • How much they cost

Designed to build a high-performing organisation, Leapsome is great for companies that want to invest in employee engagement, and covers everything from goals to compensation. 

What you get with Leapsome

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Performance reviews and goals - follow progress and have regular check-ins

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Engagement surveys - measure different aspects of your organisation and better understand your team

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Learning and development - nurture new hires and help employees develop in their career

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Compensation and promotion - promote transparency and progression

Who uses Leapsome

  • Spotify
  • Bolt
  • Monday.com

What people say about Leapsome 

“The most helpful thing about Leapsome is that you can receive and give feedback very easily, and you are in contact with your colleagues at all times. The interface is also super friendly and intuitive. It is by far the best feedback platform I worked with.”

Alexandria-Paul S.

How much does Leapsome cost 

Pricing starts at £8 per month per user, but you need to contact Leapsome for a customised quote. 

CultureAmp has quickly become a name in employee engagement software, and is built around the ‘three pillars of engagement’ — employee engagement, performance management and employee development.  

What you get with Culture Amp 

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Powerful analytics with goals and OKR tracking - keep an eye on your team’s progress 

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1-on-1s - check in with team members through short surveys 

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Micro-learning - through different channels like Slack or email

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Integrations - other tools can be connected 

Who uses Culture Amp

  • Canva
  • Etsy
  • Intercom

What people say about Culture Amp

“Culture Amp provides a fairly easy platform with incredibly useful features. Everything they offer is backed by research/psychology so I feel confident using their materials.”

Amanda S.

How much does Culture Amp cost 

Pricing depends on different factors: team size, features and service tier. You’ll need to contact a sales representative for more information. 

Hibob is an HR platform that focuses a lot on engagement and gamification, which is why many companies choose it to improve retention. 

What you get with Hibob

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Engagement surveys, regular check-ins and anonymous reporting (grievances and case management)

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Social-media-like dashboard - employees can see what’s new every day

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“Clubs” - your team can connect even when working remotely

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Built-in video feature - new starters can introduce themselves

Who uses Hibob

  • Adenza
  • ManyPets
  • Heroes

What people say about Hibob 

Ali C.

“We like the homepage with its community feel, where people can post shout-outs and interact with each other. Also, from a user experience, the pre-boarding function is incredibly useful.”

How much does Hibob cost 

All quotes provided on a case-by-case basis only,

Kudos is an app designed to boost your engagement score. It’s a great tool if you’re looking for something simple that does the job. 

What you get with Kudos

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Employee recognition - peer-to-peer messages, nomination programs and milestones

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Flexible rewards

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Analytics - improve employee satisfaction

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Accessible through laptop, tablet and phone

Who uses Kudos

  • Make A Wish
  • Telarus
  • Werner

What people say about Kudos 

Shana S.

“I love that I can recognise my co-workers for all of the amazing qualities and skills that they bring to the table! We work remotely so it is nice to be able to add a personal touch when sending them a shoutout! I love that you can convert the points to really need gift cards and prizes!"

How much does Kudos cost 

Like all the employee engagement software above, you need to get in touch with Kudos directly for a quote. 

How to choose the best employee engagement software for your small business

There are a few things to consider when choosing the best employee engagement software for your team, because ultimately it depends on what you’re looking for. 

I recommend making a list so you can more easily narrow down your requirements. Here are some ideas to get your started: 

  • Ask yourself whether you really need to invest in employee engagement software or whether you’re actually after something that delivers more, such as all-in-one HR software 
  • Set a budget for how much you can afford to pay 
  • Think about what you currently use and rely on — does/can your new software integrate with it? 

Once you’ve done this, book in a few demos and start a free trial with an HR solution like Charlie. The more you learn and understand about employee engagement software, the better placed you’ll be to make the best decision for your business.

Keep your team engaged and more with Charlie

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FAQ for small businesses and startups starting with employee engagement

Do I need gamification features? 

When you’re starting out, gamification features will likely only do three things: 

  • Distract from what you really want to achieve (i.e. simplify your HR processes and save you time) 
  • Increase the price you pay for software
  • Make it more complicated than it ought to be (a lot of gamification features can’t be easily set up)

For these reasons, small businesses and startups that opt for gamification often end up switching to a simpler product.

Should I get software that simply focuses on engagement?

What you decide to do in terms of employee engagement software really depends on your business and the specific needs of your team.

As a fellow small business, we recommend taking the time to consider exactly what it is you’re looking for. Because software that only supports employee engagement may not necessarily be the solution you need. 

At Charlie, for example, we decided to build the complete HR solution for small businesses, so we offer engagement features alongside core HR. These include:

  • Onboarding flow personalised to every new hire
  • Shoutouts to celebrate your team
  • Engagement surveys
  • Employee perks
  • Birthdays and anniversaries 
  • Integration with Slack

As a small business, you might find that all-in-one HR software like Charlie, that takes care of essential HR admin while simultaneously boosting employee engagement, is better suited to your needs. (And you can try it for free for 7 days!) 

What else do I need from HR software? 

HR software offers all sorts of benefits for small businesses. For example, you’ll: 

  • Stop wasting time with email chains – with automated onboarding, everything is in one place and it’s the responsibility of every new hire to fill out their details 
  • Get rid of spreadsheets – enjoy hassle-free time off management, with requests from team members approved or rejected in one click 
  • Have access to everything easily and securely - and have peace of mind that you comply with UK employment law 
  • Stop worrying about growth and development – employee performance reviews are regular and consistent across the team.