Employment Hero vs Xero
Over 350,000 businesses trust Employment Hero to manage HR, payroll and recruitment. Use smarter tools, faster workflows and reach a global workforce.
Data as of 09/2026
Questions to ask when comparing Employment Hero vs Smartly

Is Xero’s payroll designed to manage your people?
Payroll that calculates and distributes pay is a starting point, but it doesn’t help shape your people strategy. It’s worth asking whether your payroll platform gives managers visibility into performance, leave patterns and headcount costs in real time, or whether that information lives in a separate system that needs to be manually reconciled.
Employment Hero connects payroll directly to HR, so pay runs, leave balances, contracts and performance data all sit in one place. When an employee’s role changes, their pay and records update together. When a manager needs to understand team costs or flag a leave liability, the information is already there, no export required. The platform is also built to handle New Zealand-specific compliance including Holidays Act obligations, Kiwisaver and PAYE, so your payroll team isn’t managing compliance manually.

What happens to your HR workflows when Xero’s integrations change?
Many payroll platforms depend on third-party integrations to complete core HR functions. That’s worth understanding in detail, specifically which workflows break if an integration is deprecated, which data fields sync and which don’t, and who is responsible when a sync fails or falls out of step.
Employment Hero runs HR and payroll in a single environment, so there’s no sync layer between people data and pay data. Leave requests flow directly to payroll, timesheets update pay runs automatically and contracts, onboarding and offboarding are all handled inside the same platform. That architecture means fewer failure points and less time spent troubleshooting data mismatches between systems.

Does Xero support the full employee lifecycle?
Payroll compliance is essential, but it’s only one part of managing a workforce. As businesses grow, they need to attract candidates, onboard new starters, develop their people and retain them. The friction of switching between separate tools for each of those stages adds up quickly.
Employment Hero is built across the full lifecycle. Recruitment is handled through a built-in Applicant Tracking System with AI-assisted screening. Onboarding is paperless and connected directly to payroll setup. The Learning Management System keeps development visible and trackable. And for businesses with international ambitions, the Employer of Record solution means global hiring doesn’t require a separate provider.

What does Xero offer employees beyond their payslip?
The tools a business gives its employees say something about how it values them. It’s worth asking whether your platform gives employees anything beyond the ability to check their leave balance or download a payslip, and whether there are features that make engagement, recognition or financial wellbeing part of the day-to-day experience.
Employment Hero includes tools designed for the employee side of the relationship, not just the employers. Earned Wage Access lets employees access their earned wages before payday without a loan. The benefits marketplace gives access to real discounts on groceries, fuel, travel and more.
Disclaimer: The information on this page is current as at September 2026 and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its affiliates (Employment Hero). This page describes Employment Hero’s products and poses questions you may wish to raise with other providers; it is general information only and not professional advice. Product features, plans and pricing change over time, so please confirm current details directly with each provider before making any decisions.
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How Employment Hero compares to Xero
Employment Hero combines HR and payroll into one seamless, AI-powered platform. This integration connects your HR data directly to payroll, which means less manual work, fewer errors and faster, more accurate pay runs. It’s built to take the complexity out of your two biggest admin tasks.

Fully integrated HR and payroll system
AI-powered automation to reduce manual data entry
Faster, more accurate payroll processing
What to ask Xero
Are HR and payroll managed in a single system?
How are discrepancies between HR records and payroll data identified and resolved?


Looking to build a world-class team, no matter where they are? Employment Hero’s Employer of Record (EOR) service lets you hire top talent from anywhere in the world, without the headache of setting up local entities.

Built-in Employer of Record for global hiring
Simplifies international compliance and contracts
Hire and manage talent in over 180+ countries
What to ask Xero
If we need to hire in a country where we don’t have a legal entity, what solution do you offer?
Does your platform support international workforce management, or does global hiring require a separate provider?
Employment Hero includes a built-in Applicant Tracking System with AI-assisted candidate screening and job ad tools. Because recruitment sits inside the same platform as onboarding and payroll, a successful hire moves from offer to fully set-up employee without re-entering data.

AI-powered Recruitment for smarter recruitment
Integrated Applicant Tracking System (ATS)
What to ask Xero
Does your platform include native recruitment and applicant tracking?
How does candidate information flow from recruitment into onboarding and payroll?


Employment Hero’s built-in Learning Management System gives businesses a library of pre-built courses alongside the ability to create their own. Because it sits inside the same platform employees already use for HR and payroll, training completion is trackable without a separate tool.

Integrated Learning Management System (LMS)
Access to a library of pre-built courses
Track employee development and training completion
What to ask Xero
Is learning and development managed in your platform?
How is training completion data surfaced for managers without exporting to a separate system?
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