Human Resources (HR) software varies greatly in the features they provide businesses. Some are specialized software for specific features, while others only offer them as add-ons and opt for a more comprehensive take.

With countless options available, Gusto and Zenefits stand out as leading platforms tailored to streamline HR tasks, payroll, and benefits administration. But which software aligns best with your unique needs? This blog dives deep into a feature-by-feature comparison, offering a comprehensive look at Gusto and Zenefits to help HR professionals make an informed choice.  

Gusto Vs Zenefits: At A Glance

Feature 

Gusto 

Zenefits 

Payroll 

Automated tax filing and direct deposits 

Basic payroll with add-ons 

Benefits Administration 

Simplified health and retirement plans 

Extensive benefits options, including wellness programs 

Ease Of Use 

Straightforward navigation, minimal learning curve 

Modern design, might require some training 

Pricing 

Pricing starts at $49/month 

Pricing starts at $8/month/employee 

HR Services 

Comprehensive tools for payroll, onboarding, and compliance 

Scalable HR features, including advanced compliance and integration 

What Is Gusto?

Gusto is a comprehensive HR and payroll software platform designed primarily for small businesses and startups. It aims to simplify the management of payroll, benefits, and HR tasks. Gusto allows business owners to focus more on operations rather than administrative burdens. It is particularly noted for its user-friendly interface and automation capabilities, which help reduce errors and save time.  

The software is best known for its payroll processing capabilities. Gusto has been recognized as the #1 Software for Small Businesses and is highly regarded for its efficiency in managing payroll tasks. It automates payroll calculations, tax filings, and employee payments, making it an attractive option for small businesses that need reliable payroll solutions without extensive administrative overhead.  

Unique Features Of Gusto 

Hiring And Onboarding: New employees can self-onboard through Gusto’s platform, which streamlines the onboarding process by allowing them to enter their information directly. The software also provides customizable onboarding checklists that help ensure all necessary steps are completed for new hires.

Integrated Accounting Sync: The software seamlessly syncs with accounting software like QuickBooks and Xero software for easier and more efficient financial management.

Success Liaison: For businesses with complex needs, Gusto offers a dedicated success liaison who assists with personalized support and guidance, ensuring that companies can fully leverage the platform’s features.

Gusto Pros And Cons

Pros

  • Strong payroll features with multi-state tax support 
  • Has comprehensive onboarding tools for new hires 
  • Simplified navigation as the result of a user-friendly interface 

Cons 

  • Limited HR services for larger enterprises 
  • Does not provide advanced performance management tools 

What Is Zenefits?

Zenefits is an HR platform designed to amass various human resource functions, making employee management simpler and more efficient. The software integrates core HR capabilities with payroll, benefits administration, time tracking, compliance tools, and employee self-service features.

This all-in-one solution aims to reduce the administrative burden on HR teams and enhance the employee experience. Zenefits is now part of TriNet, operating under the TriNet HR Solutions umbrella.  

Unique Features Of Zenefits 

Automated Onboarding: Zenefits allows new employees to complete their onboarding process independently. Their information is automatically synced across benefits and payroll system, which minimizes manual entry and errors.

Integrated Performance Management: The software includes tools for performance reviews, goal-tracking, and one-on-one meeting management. This integration helps organizations manage employee performance more effectively.

Well-Being Programs: Zenefits offers built-in assessments and tools aimed at improving employee well-being. These features help companies address mental health proactively, which is not a priority for many HR platforms.

Zenefits Pros And Cons 

Pros 

  • Offers comprehensive benefits administration options 
  • Has scalable features for growing businesses 
  • Automated HR workflows reduce manual effort 

Cons 

  • Advanced tools have a steep learning curve 
  • The payroll feature is an add-on and might require additional payment 

Gusto Vs Zenefits: Key Features Comparison

1. Pricing

Gusto pricing starts at $49 per month plus $6 per employee for basic services, with the pricing increasing with additional features. It is generally considered cost-effective for small businesses focusing primarily on payroll. The plans are as follows:

  • Simple: $49/month + $6/month/person
  • Plus: $80/month + $12/month/person
  • Premium: $180/month + $22/month/person
  • Contractor Only: $6/month/person

Zenefits pricing is structured to be more suitable for growing companies that require a wider range of HR functionalities. Like its parent company, the cost of Zenefits also functions on a per month, per person pay model. The plans are as follows:

  • Essentials: $8/month/employee
  • Growth: $14/month/employee
  • Zen: $21/month/employee
Winner: This round can go to either software depending upon which feature is required more and to what extent. Gusto generally offers better value for small businesses focused primarily on payroll services. Zenefits is very affordable and provides a comprehensive list of HR solutions, but it may have some additional fees that can increase costs for startups or small businesses. This section, therefore, is a tie.

2. Time Tracking And Attendance

Gusto includes built-in time-tracking that syncs directly with payroll, which ensures that accurate hours worked are reflected in pay calculations. However, it does not provide advanced scheduling features such as geolocation tracking, leave management, or flexible shift creation and editing. Primarily a payroll and benefits administration software, Gusto provides the basics to help HR personnel with these tasks.

Zenefits offers more extensive time-tracking capabilities, including built-in scheduling tools that help manage employee hours more effectively alongside payroll functions. These features include letting HR managers create and edit employee shifts, notifications for schedule changes, and admin/manager approvals.

Winner: Zenefits offers superior time tracking, and attendance features that integrate with scheduling and other HR functions. The software also has mobile access that lets employees manage their time effectively.

3. Compliance Tools

Gusto helps businesses stay compliant with federal and state regulations through automated tax calculations and filings. It also provides resources for HR compliance but may not have as extensive features as some competitors.

Zenefits provides comprehensive compliance tools that include alerts for regulatory changes and automated updates to ensure adherence to labor laws. This can be particularly beneficial for companies in highly regulated industries.

Winner: Zenefits takes this round as Gusto does not match the comprehensive nature of Zenefits’ tools.

4. Payroll

Gusto excels in payroll processing with fully automated features, making it an end-to-end solution. It allows businesses to run unlimited payrolls easily, syncs time tracking directly with payroll data, and handles tax filings automatically. It also supports contractor payments internationally.

While Zenefits offers payroll as an optional add-on, its automation capabilities are less comprehensive compared to Gusto. Zenefits focuses more on integrating payroll with broader HR functionalities rather than standalone payroll excellence.

Winner: Gusto wins this round as it supports various payment methods, including direct deposits and pay cards. Zenefits, while capable, requires payroll as an add-on and lacks some of the flexibility offered by Gusto.

5. Reports And Analytics

Gusto has basic reporting features that help businesses track payroll expenses and employee data. Still, it may lack advanced analytics such as customizable analytics, employee engagement surveys, and turnover and diversity metrics.

Zenefits offers more advanced reporting tools that provide insights into workforce metrics such as turnover rates, compensation benchmarking, and diversity statistics. This helps businesses make informed decisions based on data. Further reporting features include performance management insights and compensation analytics.

Winner: Zenefits provides advanced reporting capabilities that allow businesses to analyze workforce metrics comprehensively. This includes turnover rates and compensation analysis. Gusto's reporting features are more basic and do not offer the same level of insight into employee data.

Final Verdict: Which Software Should You Choose?

With a score of 3:1, and one section being a tie, Zenefits appears to be the superior software.  However, the choice between the two largely depends on the specific needs of the business. For companies primarily needing payroll services, Gusto is the clear winner. However, for those requiring comprehensive HR management tools, Zenefits stands out as the better option. Before making a decision, make sure to explore all your choices; visit our site for more HR software options.