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Gusto vs Zenefits: Which is better?
Gusto and TriNet Zenefits are two of the most popular HR software platforms for small and medium-sized businesses. They’re not too complex for small teams to manage, and they both balance functionality and cost. However, each one stands out for different reasons — Gusto for its payroll strengths and Zenefits for its focus on efficiency.
So, whether you’re looking to switch from one of these vendors to the other or you’ve narrowed down your shortlist to Gusto and Zenefits, compare these two platforms in terms of features and pricing to determine which one might better fit your company’s needs.
Jump to pricing ↓
|Cost effective for small teams||Better value for growing businesses|
Jump to benefits administration ↓
|À la carte||Comprehensive|
Jump to payroll ↓
|Fully automated||Limited automations|
Jump to time/attendance ↓
|Only syncs with payroll||Syncs with payroll, scheduling, and other time management features|
Jump to recruiting ↓
|Limited functionality outside of integrations||Embedded JazzHR partnership|
Jump to onboarding ↓
|Checklist with task delegation to HR staff||Self-onboarding|
|Try Gusto||Try Zenefits|
Check out our overview of Gusto vs Zenefits in our video below:
Gusto: Best for small companies focused on optimizing payroll
Gusto started out as a payroll SaaS provider, and it’s clear that payroll is its specialty. However, the software has since expanded to perform a range of capabilities.
Its intuitive user interface, market-leading support, and affordable price point make it a popular HR software solution for many SMBs. Specifically, very small companies or those with complex payroll requirements are likely to find more success with Gusto than Zenefits.
Read more: Top Gusto Alternatives and Competitors
TriNet Zenefits: Best for growing companies focused on HR efficiency
TriNet Zenefits is an HRIS solution that delivers core HR functionality and flexible add-ons, which provides a lot of value for companies experiencing rapid growth. Growing companies may also favor Zenefits’ robust recruiting and onboarding tools.
Further, Zenefits is preferable for businesses that need a way to schedule employee shifts in addition to time-tracking capabilities, since Gusto doesn’t offer scheduling features. Customers needing flexibility will enjoy more robust options with Zenefits compared to Gusto.
Read more: Top Zenefits Competitors
Gusto vs Zenefits: A detailed comparison
Zenefits and Gusto approach their pricing in unique ways, making it challenging to understand which vendor is more cost-effective. The cost analysis depends on what a company needs to accomplish and the size of its staff.
Both Gusto and Zenefits allow customers to keep their existing benefits brokers, although this comes at an extra cost. This is valuable for companies that already have a benefits package but are looking to switch platforms for payroll, onboarding, or other functionalities.
Regardless of what benefits companies choose with these vendors, both of them help keep businesses compliant with the Affordable Care Act (ACA). Moreover, Gusto and Zenefits integrate data across employee onboarding, payroll, and benefits administration modules, eliminating the need for repetitive data entry.
In spite of great overlap in terms of benefits administration, Gusto and Zenefits differ in terms of set-up, compliance, carrier management, and mobile accessibility.
Here’s a quick overview of how Gusto and Zenefits compare in terms of benefits administration. They both offer compliance and bring-your-own-broker (BYOB) support, but they’re mirror opposites in their electronic data interchange (EDI), mobile app, and financial wellness offerings.
Both Gusto and Zenefits facilitate data integration between payroll and the rest of the HR ecosystem, namely onboarding, time tracking, and benefits. This prevents payroll errors associated with manual entry and eliminates the need to enter information more than once.
They also both offer assistance with compliance by automatically calculating taxes and facilitating organized, properly-formatted tax document management.
Gusto and Zenefits both offer a lot of automated features in their respective payroll systems, such as automatic tax calculations and filings. However, what exactly each one automates differs slightly.
|International contractor payroll||y||n|
Time and attendance tracking
Both vendors enable remote clock-in and clock-out and offer reporting tools to gain insight into key metrics such as total workforce costs and how much time is being spent on various projects.
Zenefits’ and Gusto’s mobile and desktop apps facilitate easy clock-in and clock-out, so employees can log their work at the right time and place. Both also offer geolocation features to give a manager visibility into an employee’s location when they start and stop work and prevent time card fraud.
The geolocation feature is particularly useful to help field service management companies optimize service routes and boost employee accountability, among other benefits.
|Time and Attendance Tracking|
|Integration with payroll||y||y|
Zenefits and Gusto enable recruiting in different ways. Gusto’s recruiting tools are native to the software, whereas Zenefits users reap the benefits of its partnership with JazzHR. Both platforms integrate with popular recruiting tools like Greenhouse and Lever.
|Candidate screening tools||n||y|
|Syndicated job posting||n||y|
Both Zenefits and Gusto offer tools to streamline the process of getting new employees up to speed quickly. However, each vendor’s approach offers unique advantages for different kinds of businesses.
In terms of similarities, Gusto and Zenefits provide customizable templates for key documents in the onboarding process, such as confidentiality agreements and direct deposit forms. With both vendors, new employees can sign documents digitally, and HR teams can set up automatic app provisioning for third-party tools like Slack and Google Workspace.
From there, these two differ in how they approach the rest of the onboarding process.
|Integration with ATS||y||n|
Gusto vs Zenefits: Ready to choose?
Zenefits and Gusto are two of the most popular HR software solutions on the market, and for good reason. They both offer a range of functionalities at a more competitive cost than larger platforms like SAP SuccessFactors and UKG. Each vendor offers unique advantages for different types of buyers, but the right choice will support your company’s HR goals now and in the future.
If neither software meets your company’s unique needs, explore other solutions on the market through our HR Software Guide.
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