Zenefits rolls out new pricing structure, tools for HR compliance

The new products rolling out today are part of what Zenefits refers to as HROne, a term representative of the company's all-in-one strategy going forward.
Written by Natalie Gagliordi, Contributor

Image: Zenefits

Cloud-based human resource software provider Zenefits is rolling out a new apps, mobile features, and platform integrations as part of its winter release. Zenefits also announced that it's shifting away from its freemium roots to a new tiered pricing structure -- a move that could help the former unicorn startup spur revenue growth.

The new products rolling out today are part of what Zenefits refers to as HROne, a term representative of the company's all-in-one strategy going forward. The products include new HR compliance and documents apps, new mobile capabilities, and 10 new platform integrations.

The company also expanded the availability of Zenefits Payroll to five new states starting March 1. These include New York, New Jersey, Connecticut, Colorado, and Arizona.

The HR compliance app is pitched as a way for small businesses to navigate the potential compliance conundrum looming over 2017 as the Trump administration makes changes to various regulations that impact payroll and benefits. The app will help businesses track and manage federal compliance deadlines for benefits, payroll, taxes, and basic HR, create custom deadlines and sync with internal calendars, as well as see the status of compliance obligations.

The documents app provides a centralized repository where businesses can manage personnel documents related to hiring, promotion and termination. HR admins can also view and request missing documents through the platform.

On the mobile front, Zenefits is updating both its iOS and Android apps. The primary new feature is an inbox where employees to access their HR documents, submit time sheets, and receive HR-related action items and notifications.

Among the new platform integrations are productivity tools from Box, Asana, and Hive, commuter benefits from Lyft, and connector applications from Microsoft Flow and Zapier.

Now, for the revamped pricing structure. Zenefits got its start offering free apps for HR benefits, payroll, and compliance, and over time offered various add-on apps and services for a fee. The new pricing model features four tiers where Zenefits will offer bundles of services on top of its core product, which remains free. The idea is to entice new customers with the free tier as an entry point, and then sell them more services on higher tiers later on.


Zenefits thinks it has a winning strategy with the combination of the new pricing model and expanded set of features with Z2, the company's next-generation platform released in October 2016.

With Z2, Zenefits CEO David Sacks and his team tried to sweeten the overall Zenefits package for small businesses with the pitch that its all-in-one platform can relieve many of the pain points surrounding HR, payroll, and benefits.

"The reaction to Z2 from customers, prospects and industry analysts has been very positive, and we're building on that momentum with HR One. This release adds critical new functionality to help customers deal with the growing regulatory burden on small businesses," said Sacks. "As we head into 2017, small businesses need tools that will guide them through what may be a year of uncertainty and change on the HR front. Our Compliance Assistant App is perfectly timed for that."

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