Human resources (HR) software is a must for your business, especially if you have plans to grow and expand. These HR tools can help minimize repetitive tasks, reduce chances of error, and improve productivity. Gusto and Workday are two reliable software in this regard, aiming to solve similar HR problems but with different features and offerings.  

In this Gusto vs Workday comparison, we’ll compare the features of both these platforms, such as payroll, benefits administration, and time management, to help you make a better decision.  

Gusto Vs Workday: At A Glance 

Features

Gusto 

Workday 

Payroll

Global payroll in 120+ countries 

Global payroll in more than 50 countries, along with third-party payroll processors 

Insights and Reporting 

Custom reports, anonymous surveys, and workforce costing tools 

5000+ customizable report templates and 175+ customizable dashboards 

Talent Management 

Numerous integrations for learning and performance management 

AI-powered tools to help identify areas where employees need training 

Benefits Administration 

Professional advisors and insurance transfer assistance 

Pre-built integrations to transfer data to benefits providers 

Time Management 

 

Multiple check-in options for employees 

A comprehensive dashboard showing all the time tracking data in one place 

What Is Gusto?

Gusto HR is a cloud-based solution that offers payroll, employee benefits, talent management, and other related solutions. It’s designed to solve operational problems for small to medium-sized companies. The platform has all the critical tools and functionalities needed to streamline core HR processes yet features a very intuitive interface.  

Unique Features Of Gusto 

  • Worker’s Comp: It ensures that your team’s medical expenses and wage replacement are covered in case of workplace injuries. Gusto simplifies adding workers’ comp insurance through NEXT, offering a quick solution to protect businesses and employees 
  • Software Provisioning: Allows managers to easily and quickly create and delete employee accounts with external tools 
  • Customized Offer Letter: Helps to send customized offer letters to the ideal candidates to make a good first impression 
  • Employee Handbook Builder: Helps convey a company’s values, culture, rules, and expectations in a structured and easy-to-understand manner 

Pros And Cons Of Gusto 

Pros: 

  • The interface is clear and easy to navigate 
  • Adding benefits information for employees is simple and doesn’t take a lot of time 
  • The customer support is extremely cooperative in helping set up the software 

Cons: 

  • Lacks two-factor authentication (2FA) to ensure secure log-ins 
  • There could be more guidelines for using the time off and sick leave hours accrual 

What Is Workday?  

Workday HCM is a cloud-driven software that brings together HR, payroll, talent management, and workforce planning into a single, integrated system for streamlined operations. It combines HR and finance functionalities to ensure a seamless flow of information and achieve maximum efficiency. The software also heavily utilizes artificial intelligence (AI) to automate tasks and present the right information at the right time for better decision-making.  

Unique Features Of Workday 

  • Time Accumulator: Tracks, calculates, and manages time-related data, such as worked hours, paid time off (PTO), sick leaves, and worked hours 
  • Labor Optimization: Enhances workforce management by helping managers align their staffing with business requirements and ensuring employee satisfaction 
  • Financial Planning: Empowers businesses with data-backed forecasting, budgeting, and company-wide planning 
  • Vendor Management System: Assists in managing contractors worldwide with digital invoicing, invoice template generator, and reporting systems 

Pros And Cons Of Workday 

Pros: 

  • Workday HCM offers out-of-the-box, drag-and-drop customization that makes configuration quick and flexible 
  • It’s easy to manage teams and define key performance indicators (KPIs) 
  • Workday allows integration with third-party applications, facilitating data exchange 

Cons: 

  • It doesn’t offer any option to change rates for hourly employees working in different departments 
  • Editing could be improved, as users find it challenging to go back and modify already saved data 

Gusto Vs Workday – Key Features Comparison 

Payroll

Gusto’s global payroll capabilities enable users to hire, pay, and manage employees in more than 120 countries. The platform also automatically files taxes on the user’s behalf and takes care of local payroll compliance. It assists businesses in organizing and storing crucial payroll documents like I-9s and W-2s.

Its payroll is seamlessly integrated with benefits and time tracking features, allowing it to automatically import and use employee data like worked hours, paid time off, and deductions.

Workday offers global payroll in more than 50 countries and provides a connection with secure third-party payroll systems in more than 100 countries. Moreover. the software provides a unified ecosystem that combines human capital management (HCM) with payroll. It enables businesses to streamline payroll calculations and processing while avoiding discrepancies.

The platform's compliance dashboard empowers administrators to monitor payroll-related compliance changes, allowing the business to keep up with the local wage regulations.

Winner: Gusto takes the win since it offers payroll in more countries than Workday while also providing a simpler user interface.

Insights And Reporting

Gusto’s reporting tools provide a broader image of the organization, allowing decision-makers to see all business components in unison. With the ability to create custom reports, managers can see relevant data in the right place. Admins can also send anonymous surveys to employees to get better insights into processes and identify areas that require improvement.

Moreover, its project tracking and workforce costing tools help identify a project’s efficiency and cost. With this feature, managers can shift resources, reduce costs, and boost productivity by making data-based decisions.

Workday offers 5000+ customizable report templates and 175+ customizable dashboard designs for better data visibility and comprehension. It features discovery boards that allow users to drag and drop information and make sense of the data as a whole.

The ability to see data from different perspectives allows users to solve critical business problems. Also, Workday People Analytics leverages AI and machine learning (ML) to present company data with context and narrative, allowing managers to tackle business problems with practical solutions.

Draw: Workday wins because of its massive collection of reports and AI-backed data insights.

Talent Management

Gusto offers external integrations for learning management and performance management, such as EasyLlama, Engagedly, 15Five, and Emplus. These integrations can significantly enhance employee learning and performance. Administrators can also send feedback forms that could help them get detailed insights, take proactive measures, and retain top talent.

Additional tools for talent development, evaluations, and progress tracking help businesses develop and maintain a productive workforce.

Workday Skills Cloud is an AI-powered solution that processes workforce data and identifies areas where employees need training. Companies can utilize this feature to create personalized training and upskill their workforce according to changing business requirements.

It enables organizations to curate content from external sources, add interactive segments, and run organized learning campaigns to support employee development at scale. The platform also offers in-depth analytics tools to help gauge employee engagement and training effectiveness.

Winner: Gusto is the winner because it offers numerous integrations with learning management and performance management systems.

Benefits Administration

Gusto offers a range of benefits and solutions, including but not limited to dental, vision, and mental insurance. Users can also choose to onboard benefits compliance advisors to help them navigate through the intricacies of health insurance.

Furthermore, Gusto can serve as a broker on the user’s behalf and help them transfer their current insurance or get a new one from scratch. It also provides low-cost and no-cost add-ons, such as commuter benefits and paid time off (PTO), to offer a better overall benefits experience.

Workday’s pre-built integrations automatically transfer data to benefits providers on pre-defined dates. This eliminates the need for manual data entry and data transfer. The system also assesses qualifying employees for the Affordable Care Act (ACA) and automatically initiates their enrollment.

Additionally, it accurately and securely transfers data for ACA reporting, making sure there are no mistakes and costly penalties.

Winner: Workday wins as it automates data transfer between an organization and benefits provider.

Time Management

Gusto makes time tracking easy by allowing employees to check in and out using Gusto’s mobile app, web browser, and time kiosks. Employers can also track time for remote workers, which enables companies to provide a better work-life balance without compromising on productivity.

Managers can plan, create, and view schedules and include detailed instructions for employees. Workers are also sent timely notifications to minimize miscommunication and ensure employees complete their scheduled hours.

Workday features an extremely helpful dashboard that lets users manage and view schedules, approve time, access reports, view late check-ins, and see employee absences, all in one place. Having all this data in one dashboard streamlines processes and provides a clear view of workforce productivity.

It comes with geofencing and reminds workers to check in and check out whenever they enter or leave the worksite. This reduces the instances of missing check-ins and check-outs, ensuring accurate time tracking.

Winner:

It’s a tie as both Gusto and Workday offer a range of useful features to track and manage employee time.

Final Verdict – Which HR Software Is Better?  

Deciding the best software for your business boils down to identifying your business problems and evaluating how effective each software is at solving them.

Gusto is suitable for small- to medium-sized businesses that need a comprehensive HR solution. It covers all the critical functions, such as payroll and benefits administration, as well as time management. Workday’s features are tailored for medium- to large-sized organizations that want scalable HR solutions with consistent performance. It can also be a good option for organizations that have large data sets and want to utilize them for better decision-making.  

Ultimately, the final choice between Gusto vs Workday depends on your business requirements and the features you need to process your HR tasks.