Zenefits

Zenefits launched in 2013 with a bold premise: give away HR software for free if companies bought benefits through them. That model created regulatory issues, and the company pivoted to a traditional SaaS model after leadership changes in 2017.

Today, Zenefits provides core HR, payroll, benefits administration, time tracking, and compliance tools. The platform handles employee records, org charts, PTO tracking, and document management. Payroll covers all US states with automatic tax calculations and filings.

Benefits remain a core strength. Zenefits works as a broker connecting small businesses with health, dental, vision, life, and disability insurance. They help companies navigate the confusing benefits marketplace and often get rates comparable to larger employers. The enrollment process is fully digital.

Compliance tools include ACA reporting, COBRA administration, and state-specific requirement tracking. The People Ops advisory service offers HR guidance for companies without dedicated HR staff—helpful for navigating terminations, leaves, or policy questions.

Pricing starts at $8/employee/month for the Essentials tier (HR only), $16/employee/month for Growth (adds payroll and performance), and $21/employee/month for Zen (adds engagement surveys and compensation management). Benefits administration is included at all tiers.

The main limitation is scope. Zenefits works well for companies with 5-150 employees but lacks the depth larger organizations need. Reporting is basic, integrations are limited compared to competitors, and some users report bugs and slow support responses.