HR Software

Gusto Reviews - Pricing, Pros/Cons, User Reviews

February 15, 2021
  •  
5
Brett Ungashick
Founder

Gusto is one of the fastest growing companies in the Payroll industry. They have focused on building simple, user friendly HR and payroll experiences for small businesses that can compete with the ADPs and Paychex of the world. Learn more about their story

Gusto

Overview

Gusto is the modern leader in small business payroll. This space has been dominated by ADP and Paychex for years, but Gusto's modern user interface and ease-of-use have made them a popular choice for new companies. In the last few years, Gusto has adding benefits admin, time tracking and onboarding capabilities to the system to provide more value to clients

Learn More: Download a vendor report comparing Gusto and their competitors

Market Segment

Gusto is considered an SMB HRIS, which means the system works best for companies with less than 150 employees. SMB solutions are designed to cover some, but not all HR needs with some gaps to be filled in by 3rd party solutions. SMB solutions are typically more user-friendly and more modernly designed than other vendors. Additionally, they are typically built with integrations in mind and have open APIs. A solution like Gusto usually takes 2-4 weeks to implement and often does not require a great deal of work from an administrator to get started, due to the fact that most of the system is not configurable. SMB solutions tend to have limited rules engines and custom workflow tools, which can limit how scalable they can be.

Blog: How Long Does it Take To Buy and Implement an HRIS

Costs

Gusto charges companies on an monthly or quarterly subscription basis. Gusto is often a good value for companies and the software fees can cost between $6 and 13 PEPM.

Additionally, Gusto does not usually charge an implementation fee to clients to get started.

Blog: How to Negotiate an HRIS Agreement

Strengths
  • Gusto delivers a modern, user friendly Payroll / HR experience for companies that don’t want to use legacy platforms like Paychex or ADP
  • In addition to their technology offering, Gusto offers robust HR support services for companies that needed added help with creating policies and staying compliant
  • Gusto has recently expanded beyond payroll to provide more onboarding, time tracking and benefits administration services
  • Gusto can serve as a benefits broker for companies, allowing them to bundle payroll and insurance in the same platform.
  • Gusto recently opened up their partner marketplace and is building more integrations with 3rd party HR tools
Weaknesses
  • Gusto focuses on very small companies. Companies tend to outgrow Gusto’s platform when they grow beyond 75-100 employees
  • Gusto’s timekeeping tool is very basic and not designed to support anything more than tracking PTO
  • Gusto does not offer extended functionality, such as an ATS or a performance management system
  • Gusto's customer support inquiries skyrocketed during the pandemic and they have been unable to keep pace for their customers

Shopping for an HRIS? Work with an HRIS advisor to streamline your shortlisting, evaluations and selection - for free!

Integration Capabilities

Gusto has strong integrations with accounting systems and benefit carriers, but has traditionally lagged behind its peers with their HR point solution integrations. They've recently started building a marketplace and opening up APIs but it will take time for their capabilities to catch up

Free Tool: HRIS Requirements Builder

Global Capabilities

Gusto is a domestic payroll solution and has historically only worked with US-based companies. However, they recently purchased a global payroll start-up that will allow them to expand internationally in the future

Modules Offered
  • Payroll
  • HR / Employee Files
  • Time & Attendance (limited)
  • Onboarding

Have specific HRIS questions on your mind? Send them to hello@outsail.co and get quick, expert responses at no-cost

Subscribe to OutSail's Newsletter

Get industry insights that you won't delete, straight in your inbox.
We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For information, check out our Privacy Policy.
Brett Ungashick
Founder
Brett is the founder of OutSail. He spent the early part of his career selling HR software before switching sides and going to work for the people buying the software.

More news

Which HR Systems Are Best for Mid-Sized Companies?
HR Software

Which HR Systems Are Best for Mid-Sized Companies?

The HRIS market is always changing with new companies coming to market and others getting acquired. In 2022, these are the best HRIS systems for mid-sized companies in the market today.

Read Article
How Much Does Paycom Cost?
HR Software

How Much Does Paycom Cost?

Paycom is one of the most well-known HRIS and Payroll vendors in the US. They provide an all-in-one solution that can support the entire HR lifecycle. Learn more about Paycom's costs and capabilities here

Read Article
The 9 Best Comp Management Platforms in 2022
HR Software

The 9 Best Comp Management Platforms in 2022

Compensation management has become a very popular topic for businesses in 2022. Inflation, job switching and a possible recession have all given companies reason to reassess their compensation practices to better attract and retain employees. These nine companies are leading the way in the market today:

Read Article