Zenefits Review for Small Business Owners — HR, Payroll, & Benefits That Grow With You

Zenefits is an HR + benefits + payroll platform built for SMBs. Offers flexible plans, employee self-service, and good compliance features — without paying enterprise prices.

Try Zenefits Free Demo

Overview: What is Zenefits?

Zenefits (now part of TriNet) is a cloud-based HR platform aimed at small & medium businesses. It helps simplify HR tasks: employee management, benefits administration, payroll (as add-on), time tracking, onboarding, and compliance. Software Finder+2Research.com+2

It’s a good middle ground: more features than basic tools, less overwhelming than enterprise systems.

Key Features (Plain English)

Here’s what Zenefits lets you do, in ways non-tech business owners can understand:

Onboarding & Employee Management

Create new hire offers, collect documents, store all employee files in one place. Software Finder+1

Time Off / PTO & Scheduling

Employees request leave in the app. You approve or deny. Schedule shifts, track hours. Outsail+2Software Finder+2

Benefits Admin

Manage health, vision, dental insurance, enrollment, eligibility. Some plans let you use your own broker. business.com+1

Payroll (Add-On)

If your plan includes it, or you add the payroll module, Zenefits will handle pay runs, tax filings, direct deposits, etc. Merchant Maverick+2Outsail+2

Performance & Compensation Tools

Set goals, manage reviews, adjust salaries, track performance. Outsail+1

Employee Self-Service Portal + Mobile App

Employees can check pay stubs, benefits, request time off, update personal info. All on their phone or computer. Outsail+1

Compliance & Alerts

Zenefits helps with keeping up with HR laws, benefit eligibility, compliance rules. Gets alerts/notifications for things you might otherwise miss. eLearning Industry+2Outsail+2

Integrations

Works with accounting, HR tools, broker tools, scheduling, etc. So your data flows without double work. Outsail+2Software Finder+2

Pricing & What It Really Costs

Plan Price / Employee What You Get
Essentials ~$8/employee/mo (annual) or ~$10/employee/mo (monthly) Employee management, onboarding, time off tracking, scheduling, mobile app, integrations.
Growth ~$16/employee/mo (annual) or ~$20/employee/mo (monthly) Includes all Essentials features plus compensation & performance tools.
Zen ~$27/employee/mo (annual) or ~$33/employee/mo (monthly) Includes all Growth features plus well-being tools, engagement surveys, “People Hub”, and payroll add-on included in some cases.
Add-Ons Payroll (~+$6/employee), Benefits Admin (own broker), Advisory / Recruiting services In many plans payroll is not built-in; you have to pay the extra.

✅ Pros ⚠️ Cons

Pros

✔️ Comprehensive HR Modules: Offers a more complete set of HR modules than many basic tools.
✔️ Modern, Clean Interface: Features a modern, clean interface with strong employee self-service capabilities.
✔️ Flexible Benefits Options: Provides flexible benefits options and the ability to use your own broker in some cases.
✔️ Excellent Value for SMBs: Offers good value for businesses that want more than just payroll.

Cons

❌ Payroll Often Requires an Add-On: Payroll functionality is frequently an add-on, not always included in base plans, leading to additional costs.
❌ Pricing Can Escalate Quickly: With add-ons like recruiting and advisory services, overall pricing can increase rapidly.
❌ Customer Support May Be Inconsistent: Some users report that customer support is adequate but not exceptional.
❌ Not Ideal for Very Small Teams: Businesses with fewer than five employees may find Zenefits less cost-effective due to minimum employee requirements.

Hidden Costs & Plan Traps

  • To get payroll included, you may need to move to the highest plan (Zen) or pay an add-on.

  • Some useful features (like recruiting services, performance tools, well-being) are only in higher tiers.

  • Minimum employee count means even if you have 3 staff, you might pay as if you had 5.

  • Implementation or setup cost not always clearly disclosed.

  • Using your own benefits broker may incur extra fees.

Compliance & Penalties Avoided

  • Zenefits helps manage compliance by keeping employee records, benefits eligibility, tax/benefits changes well tracked.

  • Avoid penalties from misfiling benefit enrollments or missing eligibility rules.

  • Helps ensure time off and PTO are tracked well and comply with labor law.

Integration Angle (Ecosystem Fit)

  • Zenefits integrates with accounting tools, scheduling apps, benefits carriers, productivity tools. Software Finder+1

  • If you already use tools like QuickBooks etc., these integrations reduce double entry and reduce mistakes.

  • Works well in setups where payroll is handled externally or as an add-on, so HR + benefits + employee data stay centralized.

Employee Experience (Not Just Owner)

  • Self-service portal so employees can view their pay info, benefits enrollment, request time off, update personal details. Research.com+1

  • Mobile app for leave, schedules etc. eLearning Industry+1

  • Better transparency: seeing compensation data, performance feedback, surveys in app.

Trust & Social Proof

Platform Rating What Users Say Most
Merchant Maverick ~4.2/5 Feature-rich, good UI, some complaints over cost & add-ons.
OutSail Reviews 14–22 PEPM Praise for HR modules & employee self-service.
TechRepublic Not specified Highlights end-user experience & HR functions; notes payroll limitations.

Who Zenefits is NOT For

  • ❌ Very small businesses (fewer than 5 employees) — minimums and costs may not make sense.

  • ❌ Companies that want built-in payroll out of the box at low price — payroll often costs extra.

  • ❌ Businesses needing global payroll or complex multi-country compliance — Zenefits is mainly U.S-focused.

  • ⚠️ If your business only needs payroll and not HR/benefits, there are cheaper focused tools.

✅ Best Fit: SMBs with ~5-200 employees wanting strong HR + benefits + compliance features, especially if they plan to grow.

Real-World Use Cases

  • A retail shop with 10 employees wants to offer health benefits without wrestling with multiple vendors. Zenefits simplifies benefits + onboarding.

  • A startup agency with part-time & full-time workers needs to track PTO, performance, and compensation. Growth plan works well.

  • A clinic that needs compliance for health plans, well-being features, and employee performance tracking.

💡 Tired of switching HR tools, forgetting benefit deadlines, or paying more than you need?

Try Zenefits Free Demo