Top 10: Employee Benefits software

Updated: November 23, 2022

While salary is undoubtedly the main draw in a company’s compensation offer, additional “perks” can help sweeten the deal for current or would-be employees — this could be anything from gym subsidies or an e-bike subscription, to meal allowances and mental well-being support. Employee Benefits software is curating and bundling all these various benefits.

See also: Top 10 Talent Management Systems

2022. Cobee raises $41M for an employee benefits ‘superapp’

Cobee, the Spain’s startup which has built a platform and an app to make organizing and accessing benefits a little easier, a payment card (physical or virtual), and an integration with payroll, has raised €40 million. But as a rough guide, there have been a number of other startups looking to rethink how to package up and deliver benefits. Swile out of France raised money from SoftBank last year at a $1 billion valuation; Forma out of the U.S. raised $40 million earlier this year; Chicago’s HealthJoy raised $60 million last month; Perkbox is making waves in the U.K.; Sodexo is coming at benefits from a position as a giant in hospitality; and Brazil has two benefits startups, Caju and Flash, going head to head with each other

2022. HR employee benefits platform Fringe raises $17M to offer customizable perks

Fringe, an HR tech startup enabling companies to offer customizable perks and benefits to employees, has raised $17M. Fringe hosts a marketplace of perks from around 450 vendors, including virtual fitness, virtual coaching, wellness online therapy, streaming services, and food and grocery delivery. The platform consolidates stipends and reimbursement platforms, providing options and tools for employee rewards and recognition, peer-to-peer giving, employee donations and recruiting incentives. Fringe makes money by charging employers $5 per employee per month, with the rate decreasing for larger organizations.

2022. Employee benefits platform Ben raises $16M

Employee benefits platform Ben has raised $16 million in a Series A. Ben is a SaaS platform that offers core employment benefits such as life insurance, health and pension, as well as more lifestyle-based nice-to-haves such as gym memberships and work-from-home allowances. While Ben is aimed at the human resources (HR) realm, it essentially straddles both the HR and fintech divide, integrating with systems spanning accounting, HR and payroll to automate many of the onboarding and enrollment processes. Through the platform, employers can set budgets and spend controls for each worker’s perks, as well as facilitate the entire payments process to the service provider. On top of that, Ben can issue Mastercards that each employee can use on whichever perks they want, within the limits stipulated by the company.

2021. ThreeFlow raises $45 million to scale its employee benefits placement software

ThreeFlow, which provides software for insurance brokers selling employee benefits, announced today that it raised $45 million in Series B funding. ThreeFlow’s product falls within a new category of software that it calls a “benefits placement solution” for insurance brokerages. Brokerages aggregate plans from insurance carriers and sell them to companies. In the past year, ThreeFlow facilitated over $600 million in transactions — double that of the year prior.

2021. Swile raises $200 million for its employee benefits card and app

French startup Swile, that provides a payment card for employee benefits, such as meal vouchers, gift cards and sustainable mobility vouchers, has raised a $200 million Series D funding round. With Swile, employees can optionally add their personal debit card to the Swile app. When you spend more than your daily limit, Swile automatically charges your personal card. It’s a better experience for the end user. And this product alone has been quite successful. Just four years after launch, Swile has captured a 13% market share on meal vouchers in France. It competes with well-established companies, such as Edenred, UpDéjeuner, Sodexo’s Pass Restaurant and Apetiz. Swile generates revenue on interchange fees and on commission on affiliates.

2021. Employee leave startup Cocoon launches after raising $20M

Employee leave benefits are a complicated web of company and government policies, and Cocoon is out with $20 million Series A to bring clarity and simplicity to both the employer and employee experience. The platform is designed for any type of employee leave, like parental, medical, caregiver or bereavement. It factors in all company government and insurance benefits and manages all facets of the leave from compliance to claims management to payroll calculations. Cocoon’s platform has areas for both employers and employees. On the employer side, it handles compliance and payroll complexities so that the company knows what its payroll responsibilities are, but takes all of that work off of the employer’s plate.

2021. Ben raises $2.5M seed to fix employee benefits for SMEs

Ben, a London-based employee benefits and rewards platform, has raised $2.5 million in funding. Part fintech, part HR play, Ben has built an employee benefits platform to enable SMEs to offer much more personalised and flexible benefits to employees. The U.K. startup does this via a SaaS for managing benefits, including a benefits marketplace, combined with per-employee debit cards powered by Mastercard. The idea is to give employees more individual choice around which benefits they choose, while making it easy to on-board additional providers. This can be via the marketplace or through whitelisting merchant or merchant categories via the employer issued Mastercards, such as food and drink or travel and mobility, or a specific co-working space etc.

2020. HealthJoy launches its revamped employee benefits assistance platform

HealthJoy, a platform that helps employees get the most use out of their benefits, launched its revamped user interface and technology stack. The new interface includes features that tell users expected wait times for services like its inbox and healthcare concierge, and a new benefits wallet. Last month, HealthJoy also added features to address the pandemic, including help to get testing, online consultations and a guide to nearby in-network healthcare facilities with low wait times. Launched in 2014, HealthJoy now has more than 500 employers on its platform. It has raised a total of $53 million so far.

2019. Payroll software for small business Gusto raised $200M

SMB payroll startup Gusto raises $200M Series D. The new infusion of capital will be used for scaling the company’s product and team. While Gusto’s central product is payroll, it intends to develop two other products in the coming years as the company scales. One arc is fintech features like Flexible Pay, a product that allows employees to receive their unpaid wages in advance, with the goal of reducing reliance on usurious payday lenders. The other product arc is healthcare and helping SMBs offer insurance benefits to their employees. The company crossed the 100,000 customer barrier in the past year, out of an estimated six million small businesses in the United States.

2017. Zenefits simplifies human resources management for SMB

Human resources management service Zenefits released a suite of new updates that revolve around trying to simplify the process of managing an employee base, from benefits to payroll, to something as simple as a few taps on an app. Right now, they’ve worked on tools like time-off requests and clocking in and out, but it seems  clear that as it tries to recoup the good will it lost amid a major compliance scandal that effectively halved its valuation Zenefits is trying to methodically make its way back into the small- to medium-sized business mindshare with a simpler product than a complex desktop-based dashboard. Zenefits is also adding reporting and analytics for HR managers so they can construct reports on their businesses’ employee activity. One example use case of such a business intelligence function would be helping HR managers get better snapshots of data simply for presentations to their bosses.

2015. ZenPayroll rebrands as Gusto and takes on Zenefits

Payroll startup ZenPayroll changed its name to Gusto and is moving beyond payroll, into benefits such as health insurance and workers’ compensation. The addition and subsequent rivalry is a punch in the gut to cloud HR benefits company Zenefits –

2014. Zenefits - leads the wave of next generation cloud HR services

Zenefits, the cloud HR app, which launched just over a year ago, has seen huge growth in a very short period of time. The new financing brings total amount raised to $84 million since being founded. Zenefits was created on the idea of simplifying the process of HR for companies, by providing a simple, beautiful UI for personnel departments as well as the rank and file, making it significantly easier to keep track of their pay and benefits. The SaaS platform itself is free to use, but Zenefits makes money by acting as an insurance broker.