VIDEO: Comparing Gusto & Zenefits – Which HR solution is best for you?

Gusto and TriNets Zenefits are two comparable human resource software solutions designed for small and mid-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. Let’s take a look at how. But before that, hi! I’m Kyle. And today, I’ll be walkin’ you through this chat about Gusto vs. Zenefits. If you want more info about HR software, check out our website at technologyadvice.com for our free list of the top options available today.

And if you find this video useful, help us out with a like and subscription down below. Gusto started out as a payroll SaaS, or software as a service, company, 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, or small and midsize businesses.

Specifically, very small companies or those with complex payroll requirements are likely to find more success with Gusto than with Zenefits. TriNet Zenefits is an HR solution that delivers core HR functionality and flexible add-ons, which provide 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. Gusto’s pricing structure starts with a low base price and scales up with additional tiers depending on the number of users. It does however have a five employee minimum. Gusto also offers a contractor-only plan for businesses that outsource all of the staffing needs to freelancers and other contract workers. Additionally, Gusto offers a range of services that companies can add to supplement the core features.

These include: International contractor payments State tax registration Bring-your-own-broker Workers’ compensation HSAs and FSAs Life and disability insurance 401(k) retirement savings 529 college savings Commuter benefits R&D tax credit services Priority support Federal and state compliance alerts Direct access to certified HR experts HR Resource Center Zenefits’ approach to pricing is a bit more straightforward, but the per-user cost is higher than Gusto.

However, Zenefits includes a wider range of core HR features in each plan rather than listing them as separate add-ons, so the total cost may be lower for businesses that need robust employee management tools. Zenefits’ list of add-ons includes: Payroll Advisory services Bring your own broker and Recruiting There are two primary distinctions to highlight in terms of pricing between Zenefits and Gusto. The first is payroll: Gusto includes payroll functions in every plan, whereas Zenefits only offers it as an add-on.

On the other hand, Gusto offers basic recruiting tools in its Plus and Premium plans, but Zenefits’ recruiting add-on is arguably a better investment for teams that need substantial recruiting support. Gusto’s benefits administration features are included with every plan. This is beneficial for businesses that need help with benefits as well as payroll, but companies that have an existing payroll solution may be paying for additional Gusto capabilities that they don’t need.

Zenefits’ benefits offering is straightforward because it doesn’t separate benefits into different pricing groups like Gusto does. This makes Zenefits’ approach beneficial for businesses that want to manage a wide range of benefits from a single platform without adding to the overall cost. Unlike with Gusto, EDI, or electronic data interchange, connection with insurance carriers is available with TriNet Zenefits as an add-on. This is especially useful for companies that offer a wide range of benefits and/or have a large workforce that exceeds the capacity of what the HR team can handle manually.

Both Gusto and Zenefits facilitate data integration between payroll and the rest of the HR ecosystem, namely onboarding, time tracking, and benefits. Gusto’s winning feature is its AutoPilot, which allows HR to set up payroll to run automatically. Zenefits offers automations to remind staff to run payroll on time, but this pales in comparison to the benefits of Gusto’s fully automated system. Gusto’s set-it-and-forget-it AutoPilot feature for automating payroll is a winner.

Its international payroll capability is an added bonus that Zenefits does not offer. Zenefits offers payroll as an add-on module for its all-in-one HR platform or as a standalone product. Zenefits offers a variety of report types, so HR leaders can surface insights on virtually any aspect of their payroll operations. These types include: Payroll timeline reporting General ledger reporting that syncs with accounting software and Job cost and labor distribution reporting Gusto offers similar reporting features, but they’re found in its time-tracking module.

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. 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. Gusto offers a time-tracking tool that’s only available in its top two price tiers, but its most basic plan allows for integration with a company’s own time-tracking tool of choice.

Its native time-tracking tool integrates with payroll but not with other areas of HR, which makes it tricky to align employee time-off benefits with the amount of time they request and receive. Employee time tracking is included in all Zenefits plans and syncs with the HR, benefits, and payroll modules. Zenefits’ differentiator is that it packages time tracking with employee scheduling. Zenefits has a built-in scheduling tool that enables shift managers to create and edit shifts and send push notifications to employees when schedules are ready.

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. Companies can use Gusto’s built-in recruiting tools to create job listings and track candidates. However, companies should note that these features are not available in Gusto’s basic plan, which means customers must upgrade their entire package to be able to use the software for hiring purposes.

Alternatively, customers can integrate third-party recruiting software. Gusto Recruiting enables job posting and applicant tracking, but it doesn’t syndicate job posts, so recruiters are responsible for sharing the post link manually. Zenefits offers recruiting as an add-on powered by JazzHR at any pricing level. In contrast, Gusto doesn’t offer job posting, ATS capabilities, or other advanced recruiting features in its basic package. With Zenefits, users can leverage the power of JazzHR to recruit, track, and hire candidates without leaving the Zenefits platform.

Companies that opt for the recruiting add-on can syndicate job posts across various job boards and social media networks to improve hiring efficiency and reach a wider pool of candidates. Zenefits also features automation for matching sought-after skills with the right candidates. This kind of screening capability is not available with Gusto at any subscription level. 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. Gusto features an onboarding checklist that includes suggestions of typical stages in the onboarding process, but HR professionals can add steps that are tailored to their company’s particular needs. The various tasks on the checklist can be delegated to an entire HR team, which can help keep things running smoothly and ensure nothing slips through the cracks.

However, the lack of automated onboarding capabilities means that the whole process will take more time and manual effort than it would with Zenefits. Zenefits empowers employees to take control of their own onboarding process without needing to reach out to HR every step of the way. HR administrators can monitor new employees’ progress to ensure all tasks are completed in a timely manner. Thanks to its partnership with Checkr, Zenefits also conducts fast and comprehensive background checks on new hires directly from the platform to expedite the process.

Ultimately, with Gusto vs. Zenefits, it boils down to what your goals are with an HR solution. While Zenefits is a higher cost per user, it does provide more value and HR efficiency with many features for the money. Zenefits includes more benefits baked into its packages, such as syndicated job posting, candidate screening, and the inclusion of EDI is a big plus for benefits administration. Gusto’s Autopilot is the star of Gusto’s features, automating many tasks in the payroll process.

If payroll is the main focus of your needs, Gusto is the best option for optimizing payroll. That said, these aren’t the only HR tools out there. Some other options to consider are Rippling, IntelliHR, or Paycor. Thanks for watching! If you found this helpful, please hit that like and subscribe button down below. And if you want a more detailed breakdown of these two, check out the corresponding article on our website, the link to that is in the description below. Or if you want a free list of the top HR options available today, click the button on the left to get started.