Zenefits HR Review 2023

Let’s cut to the chase: Zenefits is expensive, so businesses with particularly tight budgets will likely feel pinched.

But if your business is flush with cash, this human resources system has one of the most beautiful, intuitive user interfaces we’ve seen. The platform’s allure is more than skin deep, though, with time tracking included free and consulting from HR experts available for an additional fee.

Let’s explore if the Zenefits human resource software is right for your business.

Each plan offers a 14-day free trial. Keep in mind there is a five-employee minimum on all subscriptions, even if you have fewer workers. This caveat is fairly common, albeit inconvenient, among administrative software titles, with the likes of Zoho People and Hubstaff also declaring headcount minimums.

We applaud Zenefits HR for being transparent with its pricing. However, this makes it crystal clear that the platform is far more expensive than most competitors targeting small businesses (more on this below).

As a result, you’ll need a generous budget to afford Zenefits, which can easily cost tens of thousands of dollars annually for 50 or more workers. But, those that can afford it are treated to a whirlwind of visual beauty and intuitive functionality. We see no issue in rapidly becoming proficient at the platform, even if you lack an HR background. Plus, you likely won’t need any more software to fulfill all of your HR tasks, given the title’s comprehensiveness.

We also love the suite’s highly insightful—and, of course, visually stunning—reports and analytics, such as elaborate employee engagement surveying. You’ll need to commit to the two higher-level (and much more expensive) plans to score these perks, though. This makes Zenefits hard to justify for smaller entities with fewer than a couple dozen workers.

Each core subscription serves up a decent chunk of functionality, so it’s practical not to need any add-ons. However, unless you’re already married to a payroll service, you’ll at least need to fork over $6 monthly to cut paychecks with Zenefits.

We think the Advisory Services perk, which provides unlimited consulting from HR professionals, is a particularly sweet deal. That’s because very few HR software titles offer this type of live expertise, leaving you on the hook to demystify the complexities of personnel administration single-handedly. So, if you have the chance to mitigate this legalese-drenched burden, we recommend jumping on that opportunity.

Plus, standalone HR consulting services, such as Bambee, can charge over $30 per employee for similar advisory benefits. That figure makes Zenefits’ $10 monthly price ($8 on annual plans) seem minuscule.

Zenefits makes it easy to tackle the complexities of providing your staff with top-notch insurance, retirement plans, and other non-salary perks. The company bridges direct access to third-party providers to create a customized benefits menu that matches your business’s budget. Alternatively, you could rely on your own broker, but this inconveniently costs $5 a month per employee.

For better or worse, compensation remains a secretive topic in the business world. That’s why we love the Compensation Management perk, which analyzes anonymous salary data from all of Zenefits’ clients across the US. This treasure trove of original intel can serve as the basis for highly accurate executive decisions that keep staffers fairly paid at market rates.

The higher-end Growth and Zen plans include elaborate performance management tools to help employees reach their goals and improve their productivity. Plus, managers can survey all staffers anonymously to gauge overall morale and ideas for workplace improvement. These are nifty perks because many other platforms either exclude such features altogether or leave these elements severely lacking in usefulness.

The software package is noticeably more expensive than many competitors despite offering similar features found elsewhere. Let’s illustrate this using an example.

For the entry-level Essentials plan, paid month-to-month, Zenefits charges:

• $8 monthly per employee
• $6 a worker each month for payroll (optional)
• $8 per worker, monthly for support from HR professionals (optional)

This comes out to $26 a month per employee, or $260 for ten employees.

By comparison, Gusto’s high-end Concierge plan dishes out these same features (plus more) for $12 per worker plus a $149 flat monthly fee. That adds up to $269 monthly for ten workers, effectively providing more value for less money starting with the eleventh employee.

Zenefits does serve up an approximately 20% discount on annual plans, although such yearly deals are common among competitors, as well. Plus, committing to 365 days at a time requires a large chunk of change upfront, no matter which vendor you choose.

Zenefits sports a gorgeous user interface and comprehensive features that make it an all-in-one solution—if you can afford it.

The platform’s above-average pricing isn’t fully justified by its features that many competitors, such as Gusto, offer for less. Rather, you’re paying a premium for a very pretty interface that’s highly approachable, regardless of HR expertise.

This could be a great trade-off if you want to keep things easy and you aren’t overly strapped for cash. But, we don’t recommend it for budget-conscious businesses or those with highly skilled HR teams that want complex power instead of simplified interfaces.

Want to be an employee benefits master? Take a look at our top HR picks for employee benefits software.

Zenefits states it keeps all data encrypted in transit and at rest using the industry-standard AES-256 encryption protocol. This data is kept on Amazon Web Services (AWS) servers in the United States.

Also, the company asserts compliance with SOC II data security standards, meaning a third-party entity audits Zenefits’ security practices. We’d recommend asking to review its SOC II audit report, which should be produced on demand, and carefully reviewing if the auditor identified any concerns.

We spent over a dozen hours analyzing Zenefit's small-business suitability, along with its expandability, user-friendliness, customer service availability, add-on features, and other considerations.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.