Hi,
I'm just dealing with a free and open source
HR software, its called OrangeHRM.
The availability of the source code make possible any change if you have IT staffs to do it and also makes the product free. You can get the complete free full and stable version at
http://www.orangehrm.com
If you need they offer support and customization. I have experience with both services and nothing to complain till now. The software is great, suitable for small and middle companies, cheap and the service perfect. Let's see how things will work lately (maybe is a little bit early to have this conclusion ... but I strongly advice a trial)
Hope I have helped
cheers!!!!!
carlos