ADP vs Zenefits

2018. ADP acquired workforce management service WorkMarket



Payroll provider ADP has acquired WorkMarket, a startup specializing in workforce management software designed for a diverse range of employees and contractors. The software aims to provide a unified interface for efficiently managing an extended workforce, encompassing various workers with different employment statuses, such as contractors, freelancers, and full-time employees. WorkMarket offers comprehensive features including payment systems, extended employee network management, and a marketplace for assembling a workforce that complements a company's operations beyond the scope of traditional full-time employees. This acquisition empowers ADP to offer enterprises an expanded suite of workforce products, strengthening its position as a leading provider of payroll solutions.


2017. Zenefits added performance management tool



HR management service Zenefits has introduced a new in-house performance tracking tool for employees as part of its strategy to become a comprehensive HR solution for small businesses. Alongside features such as reviews and goals, the tool will gradually incorporate check-ins and peer reviews. While these aspects may sometimes be neglected or considered secondary in smaller companies, Zenefits aims to streamline the process and introduce advanced corporate practices to smaller businesses.


2017. Zenefits simplifies human resources management for SMB



Zenefits, a human resources management service, has recently unveiled a range of updates aimed at streamlining employee management processes, including benefits administration and payroll, by providing user-friendly mobile app functionalities. These improvements come in the wake of a compliance scandal that significantly impacted Zenefits' valuation, prompting the company to strategically reestablish itself among small- to medium-sized businesses through a simplified product offering, diverging from its previous complex desktop dashboard. Additionally, Zenefits is introducing reporting and analytics features for HR managers, enabling them to generate comprehensive reports on employee activities within their organizations. This business intelligence capability is particularly useful in providing HR managers with valuable data insights for presentations to their superiors.


2017. Zenefits adds new tools for employee compliance



Zenefits, an HRM service, introduces new tools designed to assist HR managers in guaranteeing employee compliance with regulations and the timely submission of required documents. The initial tool enables HR managers and employers to proactively address compliance requirements for employees. This functionality includes identifying instances where employees have not submitted necessary paperwork after accepting a job, enabling managers to easily identify and manage non-compliant cases. The second tool is a document management application that empowers HR managers to oversee the submission of all required documents by employees. Unlike conventional file storage solutions like Box or Dropbox, Zenefits' document app emphasizes metadata and ensures the presence of signed documents in an organized file system. HR managers can either upload documents themselves or request prompt submission from employees.


2016. HR service Zenefits opens up to third-party developers



The second version of Zenefits, an online HR service that consolidates payroll, benefits, and compliance management, is being launched under the name Z2. In addition to serving as a central hub for company data, Z2 is now positioned as a platform that allows other companies to leverage this data for their own tools. Zenefits has opened its doors to third-party developers, enabling them to utilize Zenefits as a permanent repository for employee data, similar to how certain services utilize Facebook for user data, and develop their own services around it.


2015. Zenefits launched own payroll platform


Cloud-based HR service, Zenefits, has introduced its own payroll system following its disconnection from paycheck services giant ADP earlier this year. While Zenefits initially partnered with ZenPayroll, the latter rebranded to Gusto in September and released a set of free HR services that closely resembled Zenefits' offerings. The newly launched Zenefits payroll system operates in two modes. The first is a free, fully automated service that seamlessly integrates automatic payments with employee deduction updates for health, retirement, and other benefits. Additionally, there is a pro mode available for users who prefer more control over the backend. Zenefits Payroll Pro starts at $25 per month, with an additional $4 per employee per month on an annual contract. Furthermore, the new system offers integration with QuickBooks and Xero, enabling smooth connectivity and data synchronization.


2015. Payroll giant ADP cut off Zenefits small business clients



Corporate payroll company ADP has implemented a restriction that prevents small business clients who use the ADP RUN payroll system from sharing data with Zenefits. This decision was made due to concerns about Zenefits' data security practices, as they were found to be extracting sensitive information, including unmasked Social Security numbers and employee banking details, in a manner that does not align with ADP's data security standards. Zenefits expressed their dissatisfaction with ADP's actions, highlighting that this change was sudden and unexpected for their clients. Zenefits offers human resources (HR) services to small and medium businesses and collaborates with various third-party partners, such as ADP, to facilitate tasks like payroll processing and insurance provision.


2015. Zenefits launched free tools for managers and executive


Cloud HR service Zenefits has introduced two management tools that were typically exclusive to larger enterprises, but are now available for free. The first tool, called Zenefits for Managers, empowers managers within an organization to independently make HR changes without having to wait for HR or CEO approval. This includes tasks like adding new hires, modifying job titles, and adjusting salaries. Additionally, Zenefits is granting executives access to business intelligence reports through Zenefits Business Intelligence. This feature enables users to filter real-time workforce data, including compensation, employee headcount, and turnover. The aim of this product is to mitigate disparities and provide executives in different offices with insights on how their departments compare to others.


2015. Cloud HR management provider Zenefits raised $500 Million



The SaaS company with the most rapid growth in history, Zenefits, has successfully secured a funding round of $500 million, valuing the company at $4.5 billion. Zenefits revolutionizes the way small and medium-sized businesses manage their human resources services, offering a simplified approach. Employers can access Zenefits' HR services dashboard free of charge, while the company generates revenue through commissions from insurers. Zenefits proudly announces that it has already onboarded over 10,000 companies in the United States, and its business growth in March alone surpassed its accomplishments during its initial year. Furthermore, Zenefits currently manages an impressive portfolio of over $700 million in health insurance premiums.


2015. Cloud HR startup Zenefits is one of the fastest-growing SaaS businesses ever



During the 33rd Annual JPMorganChase Health Care Conference, CEO Parker Conrad of Zenefits made an exciting announcement. By the end of the current fiscal year, Zenefits is projected to surpass $20 million in annual recurring revenue, despite being in business for less than two years. This tremendous growth is evidenced by the company's revenue, which has increased 20-fold from $1 million at the same time the previous year. In comparison, it took established SaaS businesses like Workday and Salesforce approximately four years to achieve $20 million in annual recurring revenue. What makes Zenefits' accomplishment even more intriguing is the fact that, unlike many other enterprise SaaS companies, it doesn't charge for the use of its cloud-based HR platform. Instead, Zenefits generates revenue when customers designate it as their insurance broker. Even in those cases, Zenefits earns a commission from the insurance provider, allowing customers to continue enjoying free access to its platform.