Choosing suitable HR software can be difficult, especially with so many options emerging every day. Gusto and Namely are two popular HR software platforms that businesses often compare, and for good reason.

Gusto is an appealing option among small businesses as it provides a straightforward approach to managing payroll and HR tasks. On the other hand, Namely is designed for medium-sized organizations, offering more powerful capabilities and a fully customized experience.

In this blog, we'll compare Gusto vs Namely to help you learn what each platform offers so you can choose the best HR tool that meets your specific business needs.

Comparing Gusto Vs Namely: At A Glance 

Features 

Gusto 

Namely 

Payroll Processing 

Integrated health insurance, 401(k), workers’ comp, time tracking, PTO, and more 

Online payroll system integrated with HR, benefits and time, employee self-service and expense tracking 

Time And Attendance 

Time kiosk app, geofenced work sites, workforce cost reports, automatic time off calculations, and PTO accrual alerts

Centralized platform for tracking PTO, vacation, and leave requests, flexible time off plans 

Hiring And Onboarding 

Public job posts, personalized offer letters, custom onboarding checklists, integration with top applicant tracking systems 

Simple new hire data collection, personalized onboarding experiences, delivered E-Verify integration 

Reporting And Insights 

Customizable reports, anonymous team surveys, automatic compliance alerts, and more 

Intuitive ad-hoc report builder, point-in-time reporting, easily configurable and exportable HR reporting 

Benefits Administration 

Smart paycheck management, medical, dental, and vision administration, and health insurance transfers 

Unified benefits, HR and payroll data, open enrollment dashboard, and ACA enrollment and reporting 

Pricing 

Starting price: $40/month (plus $6/month/person)

Starting price: $9/employee/month 

What Is Gusto?  

Gusto HR is a cloud-based human resource solution that simplifies payroll, benefits, and employee management for small and medium-sized organizations. The software provides customizable tools for hiring and onboarding, as well as compliance management, time tracking, and employee self-service portals.  

The software’s user-friendly design and integrated features help businesses save time, decrease administrative burdens, and maintain compliance with employment regulations. It automates payroll, tax filing, and benefits administration, like health insurance and retirement plans.  

Unique Features

  • Health Insurance: The health insurance feature enables businesses to provide comprehensive medical coverage to their workforce with ease. Businesses can choose from a range of medical, dental, and vision insurance plans that fit their budget and coverage requirements 
  • Workers' Comp: The ‘Workers' Comp’ or compensation feature provides pay-as-you-go insurance through its insurance partner NEXT, which integrates with payroll to safeguard businesses and employees from workplace injuries 
  • Gusto Wallet: Gusto Wallet is a free mobile application created for employees whose workplaces use Gusto payroll services. It includes financial tools, time tracking, benefits information, tax document access, paycheck splitting, and pay insights, allowing users to efficiently manage their finances 
  • R&D Tax Credit: Gusto's R&D Tax Credit Software allows small and medium-sized organizations to identify and claim federal research and development tax credits. By analyzing payroll and accounting data, the software automates the discovery of qualifying expenses, making it easier to obtain tax credits for eligible R&D operations 

Pros And Cons 

Pros 

Cons 

  • Automated tax calculations ensure accurate tax withholdings and filings 
  • Excellent compliance management helps businesses adhere to labor laws and regulations 
  • Comprehensive benefits administration facilitates health insurance, retirement plans, and more employee benefits 
  • Lacks advanced features like employee scheduling and job costing 
  • Provides domestic payroll solution, with limited support for international employees 

What Is Namely?  

Namely is an all-in-one human resources (HR) platform designed specifically for medium-sized businesses. The software provides a complete set of features for managing various HR responsibilities, including payroll processing, benefits administration, people management, time and attendance tracking, compliance support, and more.

Its user-friendly interface simplifies routine HR tasks like document storage, feedback collection, time-off tracking, communications, and organizational chart management. This platform also provides employee onboarding solutions to automate processes, securely store new hire forms, collect electronic signatures, and ensure compliance, resulting in a seamless experience for new employees.  

Unique Features 

  • Performance Management: Namely provides continuous feedback, goal alignment, 360-degree reviews, and customized performance evaluations to aid in employee growth, align goals, and boost engagement across teams and organizations 
  • Compliance Support: Namely's compliance feature includes a compliance library, state law comparisons, HR advisors, notifications, and tools to help organizations meet regulations, reduce risks, and stay updated across many jurisdictions 
  • Advanced Scheduling: The advanced scheduling feature improves efficiency by automating complex schedules that align employee availability, skills, and business needs, resulting in optimal workforce management 
  • Social News Feed: Namely features a social news feed to promote communication and collaboration within the organization. This feature allows employees to share updates, recognize peer accomplishments, and engage with company-wide announcements to improve overall engagement and connectivity 

Pros And Cons 

Pros 

Cons 

  • It offers tailored performance management processes to accommodate diverse organizational needs 
  • Features like news feed promotes communication and collaboration within the organization 
  • Employee self-service helps in reducing administrative workloads 
  • Pulse surveys and applicant tracking systems require third-party integrations 
  • The payroll feature does not fully support complex payroll scenarios 

Gusto Vs Namely: Key Features Comparison 

1. Payroll Processing

Gusto offers a payroll system that integrates smoothly with benefits like health insurance, 401(k) plans, workers' compensation, and time tracking. It ensures compliance by automating tax returns, W-2s, and 1099s. It also supports time-off tracking and direct deposit payments, as well as tools for splitting paychecks and contractor management.

Namely provides a comprehensive online payroll solution that integrates with HR and benefits. It streamlines payroll by providing employee self-service capabilities, expense tracking, and automated tax filings. Namely payroll is ideal for organizations that need a unified platform to manage multiple HR processes.

Winner: Gusto wins here due to its combination of user-friendly functionality, compliance automation, and payroll flexibility, which makes it a more versatile option for a range of business sizes and needs.

2. Time And Attendance

Gusto features a time kiosk app for checking in and out, geofencing to track worksite locations, and automatic calculation of time off and PTO accruals. The workforce cost reports provide insights about labor expenses, making it perfect for budget-conscious organizations.

Namely incorporates an integrated platform for managing PTO, vacation, and leave requests. It offers customizable and flexible time-off policies, ensuring that organizations can adapt to the varied needs of their employees. Even though it lacks geofencing and advanced reporting features, it provides effective tools to perform basic processes.

Winner: Gusto takes the lead for its robust geofencing and workforce cost analytics, which are particularly useful for complex workforce monitoring tasks.

3. Hiring And Onboarding

Gusto simplifies recruitment by providing public job postings and personalized offer letters. Its onboarding options include customizable checklists, automated document collection, and interaction with applicant tracking systems. These tools make hiring easier while enhancing the candidate's experience.

Namely offers simple data collection and E-Verify integration to ensure compliance throughout the onboarding process. It also provides personalized onboarding experiences to enhance engagement while assisting new hires smoothly transition into the new roles.

Winner: Gusto’s focus on applicant tracking integration and customizable features makes it a better choice and a winner for modern hiring demands.

4. Reporting And Insights

Gusto offers customized reports, anonymous employee surveys, and automated compliance alerts. These solutions are designed for small and medium-sized organizations looking for basic but effective reporting capabilities.

Namely stands out for its ad hoc report builder, point-in-time reporting, and easy-to-export data. Its advanced analytics capabilities enable users to generate detailed, real-time reports to meet specific business requirements.

Winner: Namely stands out for its advanced customization options and extensive analytics features that appeal to businesses wanting detailed insights.

5. Benefits Administration

Gusto simplifies benefits management by providing features that cater to medical, dental, and vision administration. It allows health insurance transfers and offers paycheck management tools that show employees how benefits impact their paychecks.

Namely integrates benefits with its payroll and HR systems to create a more unified experience. Its open enrollment dashboard simplifies employee benefits management, and its electronic carrier feeds and ACA compliance tools ensure adherence to federal laws and regulations.

Winner:

Namely provides advanced benefits administration features and smooth integration capabilities designed for larger enterprises that makes it a victor in this category.

Which Is Better: Gusto Vs Namely?

When deciding between Gusto vs Namely, the ideal option is mostly determined by your company's size, complexity, and priorities.

Gusto offers user-friendly tools, transparent pricing, payroll management, hiring, onboarding, and time tracking for small businesses seeking simple, automated HR solutions. Namely provides customizable HR features, advanced reporting and insights, and extensive benefits management, catering to medium and large-size companies with complex needs.  

If you still need to explore more options, you can head over to our website and take advantage of the choices available there.