Zenefits Reviews - Pricing, Pros/Cons, User Reviews

Unlock the power of employee management with insightful Zenefits reviews. Discover firsthand experiences, pros, and cons to make informed decisions for your business

Brett Ungashick
OutSail HRIS Advisor
July 4, 2023
Zenefits on computer screen

Zenefits

Overview

Zenefits changed the HRIS industry in the early 2010s with their sleek, modern user interface and unique busniess model. As they've grown, the business model looks more like their peers, but they've continued to focus on building easy-to-use technology for small and medium sized businesses. They also have open APIs and integrations with many leading point solutions.

Market Segment

Zenefits is considered an SMB HRIS, which means the system works best for companies with between 25 and 250 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 Zenefits usually takes 6-8 weeks to implement and requires a bit of configuration work from the administrator. SMB solutions tend to have limited rules engines and custom workflow tools, which can limit how scalable they can be.

Costs

Zenefits charges companies on a quarterly or annual subscription basis. Depending on the modules included and the size of your company, Zenefits software fees can cost between $14 and 22 PEPM.

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In addition to the software fee, Zenefits does charge a nominal implementation fee to clients to get started. This fee is typically ~5-10% of the annual software fees.

Strengths
  • Zenefits’ platform covers nearly every aspect of Core HR for companies (performance, comp, time, onboarding and benefits) except for an ATS, where they integrate with leading providers.
  • Zenefits offers a lightweight compensation tool through PayScale that can benchmark your data against your peers
  • Zenefits has a very modern, intuitive user interface that can help with employee self-service
  • Compared to some of their SMB peers, Zenefits offers a more complete set of modules and can support more complex timekeeping requirements
Weaknesses
  • Zenefits isn’t known to be the most scalable option on the market. They have clients all the way up to 500 employees and beyond, but their sweet spot is typically below 150 employees
  • Some clients have mentioned that setting up benefit carrier feeds is a pain with Zenefits
  • Zenefits was acquired by TriNet at the end of 2021 and it's unclear what changes that will lead to for the product and service.
  • Since Zenefits stopped raising venture funding, the innovation cycles for their product have slowed significantly.
Integration Capabilities

Due to gaps in their own system, Zenefits has always prioritized integrations with 3rd party systems. Zenefits has marketplace integrations with many leading HR point solutions. However, custom integrations are not always the easiest to build with Zenefits due to their lack of professional services resources

Global Capabilities

While Zenefits can serve as a basic system-of-record for international employees, their primary audience is working with domestic companies. They don't typically partner with global payroll companies either

Modules Offered
FAQs
1. What is the pricing structure for Zenefits?
  • Zenefits operates on a quarterly or annual subscription basis, with software fees typically ranging between $14 and $22 per employee per month (PEPM). Additionally, there may be a nominal implementation fee, usually around 5-10% of the annual software fees.
2. What market segment does Zenefits serve best?
  • Zenefits is considered an SMB HRIS, catering to small and medium-sized businesses with between 25 and 250 employees. Its user-friendly interface, modern design, and integrations make it well-suited for SMBs.
3. What are the strengths of Zenefits?
  • Zenefits offers a comprehensive suite of Core HR modules, including performance, compensation, timekeeping, onboarding, and benefits administration. Its modern, intuitive user interface enhances employee self-service, and it integrates with leading ATS providers. Additionally, Zenefits provides a lightweight compensation tool through PayScale.
4. What are the weaknesses of Zenefits?
  • Zenefits may not be the most scalable option in the market, with its sweet spot typically below 150 employees. Some users have reported challenges with setting up benefit carrier feeds, and there is uncertainty regarding changes following its acquisition by TriNet. Additionally, innovation cycles may have slowed since Zenefits stopped raising venture funding.
5. What are Zenefits' integration capabilities?
  • Zenefits prioritizes integrations with third-party systems to fill gaps in its own system. While it offers marketplace integrations with many leading HR point solutions, custom integrations may not be the easiest due to a lack of professional services resources.

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Meet the Author

Brett Ungashick
OutSail HRIS Advisor
Brett Ungashick, the friendly face behind OutSail, started his career at LinkedIn, selling HR software. This experience sparked an idea, leading him to create OutSail in 2018. Based in Denver, OutSail simplifies the HR software selection process, and Brett's hands-on approach has already helped over 1,000 companies, including SalesLoft, Hudl and DoorDash. He's a go-to guy for all things HR Tech, supporting companies in every industry and across 20+ countries. When he's not demystifying HR tech, you'll find Brett enjoying a round of golf or skiing down Colorado's slopes, always happy to chat about work or play.

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