Zenefits is a company headquartered in San Francisco, California that offers cloud-based software as a service to companies for managing their human resources, payroll, and health insurance coverage. Founded in 2013, Zenefits originally launched as a platform that simplified the process of administering and managing benefits for small and medium-sized businesses. However, the company has since grown to include core human resources functions such as time tracking, onboarding and employee record keeping. Zenefits positions itself as an all-in-one human resources platform.
How Zenefits Works:
Zenefits offers three pricing packages: Essentials, Growth and Zen that are each tailored to small and medium-sized businesses of varying sizes. Zenefits is an all-encompassing, cloud-based human resources suite that improves efficiencies by automating key tasks related to payroll, benefits, performance, compliance and more. Zenefits’ payroll system connects to all of the other human resources solutions and automatically syncs any changes made while managing employee information so as to reduce errors in payroll and taxation documents.
To date, Zenefits has helped over 11,000 human resources departments throughout the U.S. achieve efficiency gains through its all-encompassing software solution. The company’s customer base ranges from start-up to mid-sized businesses aims to cover a growing list of industries such as retail, information technology and healthcare. Zenefits runs a “hub and spoke” business model that provides customers with an online dashboard which includes many bells and whistles designed to smooth human resources processes.
In terms of how it specifically works, customers send a request to Zenefits providing their name and a work email to the company’s support team. Zenefits will then work with companies one-on-one to start the implementation process. Each customer is assigned a Zenefits support representative as a main contact. The customer continues to work with that Zenefits representative from the initial set-up process through to the launch and training to periodic software and account maintenance.
Zenefits offers various support options to fit a customer’s needs via an online “Help Center,” which includes guidance on various topics and telephone support. If a customer chooses to manage its healthcare and other benefits through Zenefits, a separate benefits representative will be assigned to the customer to act as a consistent point of contact.
Costs and Terms:
In terms of costs, Zenefits offers three levels of pricing for its Essentials, Growth and Zen packages. Customers have the choice of being billed on a monthly or yearly basis.
- Essentials: This plan costs $10 per employee, per month ($8 for yearly billing) and includes the Zenefits human resources platform, time and attendance, scheduling, compliance, mobile app, PTO tracking and app connect (i.e., the ability to integrate Zenefits to third-party applications).
- Growth: This plan costs $18 per employee, per month ($14 for yearly billing) and has all the features that are available in the Essentials plan, plus compensation management and performance management.
- Zen: This top-level plan costs $27 per employee, per month ($21 for yearly billing) and includes all the features in the Growth plan, plus “well-being,” a feature that helps companies measure and improve employees’ well-being.
Additionally, Zenefits offers optional add-on features that include:
- Payroll – Payroll is free to new clients and provides them with free payroll services for the first 12 months.
- Benefits – This feature costs $5 per employee, per month if a company wants to use their existing broker, and, it’s free for companies that use a broker from Zenefits’ partner network.
- Advisory Services – These services are $10 per employee, per month ($8 for yearly billing) and include access to certified human resources and payroll experts for questions or issues.
If there is one quibble users have reported with Zenefits, it is that some assigned customer service representatives can be difficult to reach during the implementation phase, resulting in missed deadlines for insurance open enrollment. Other customers have mentioned that Zenefits’ initial implementation support was good, but representatives became hard to reach after the launch phase.
Zenefits has been praised for fixing bugs found in its software quickly and efficiently. The support team at Zenefits works quickly to fix issues whenever they arise.
- Offers a full suite of human resources products to small and medium-sized businesses.
- Reasonable costs per employee and flexible monthly or yearly payment plans.
- Constant improvements made to software platform and responsive to fixing problems.
- Customer representatives can be difficult to reach, especially after launch phase.
- Glitches in software have been reported by some customers.
- Add-on features cost additional money on a per employee basis.
What Others Are Saying:
Zenefits human resources and payroll software has received a lot of praise from reviewers. PC Magazine has awarded Zenefits its “Editors' Choice” award and says “Zenefits remains the most complete solution for most small to midsize businesses.” Zenefits also has numerous four- and five-star reviews online. Some customers do complain about the difficulty in reaching a customer service representative, but the positive aspects of the service seem to outweigh any negativity about the company.
The Bottom Line:
Zenefits is a solid choice when it comes to cloud-based human resources solutions. For small and medium-sized businesses that don’t have the internal resources to run their own human resources departments, Zenefits offers an affordable and comprehensive solution. While not perfect, Zenefits cloud-based service has been praised for being easy and intuitive to use and the set-up is efficient and quick. The fact that it can be used for everything from tracking employee performance to payroll, taxes and healthcare benefits makes it a beneficial all-in-one solution for people running their own companies.