Online payroll and HR tech provider Gusto goes freemium
Joshua Reeves, Gusto: “Humans are not capital, humans are not resources, they are people”
Online payroll and HR services provider Gusto (formerly ZenPayroll) has launched a freemium model, writes Julie Muhn at Finovate. HR Basics offers small businesses a set of basic HR tools for free.
The free service allows small businesses to manage employee vacation time, archive a directory of employees, and decrease the time it takes to onboard new hires. Unlike most freemium models, Gusto does not require small businesses to provide credit card or bank account information to use the service.
Gusto helps businesses move all paperwork online to create a better employee experience and company culture. Gusto CEO Joshua Reeves, discussed the term “human resources” with TechCrunch: “even the terminology ‘human capital management’ … humans are not capital, humans are not resources, they are people, thank you very much”, he said.
As with all freemium offerings, the goal of Gusto’s HR Basics is to hook small businesses while they’re still small, so that when they need a more robust product, they’ll become paying customers. The company’s flagship product offerings range from $39 per month plus $6 per month per person and $149 per month plus $12 per month per person.
This move will help Gusto differentiate itself from its closest competitor, Zenefits, which also offers online HR, payroll and benefits management. While Zenefits does not offer a free option, it does have less expensive and more a la carte pricing options.
The company rebranded as Gusto in 2015, simultaneously pulling in $50 million in funding.
Gusto was founded in 2011 and is headquartered in the US state of California. Of the company’s 525 employees, 51% are women.
