Zenefits is surely going to give a run for money for all SasS based service in HRMS industry, may not necessary in in few months or years but for sure in long term if they stay on course. The best part of Zenefits is, it has created a new market of its own, small business human resource and will further venture into existing market.
A year end study by Forbes has listed Zenefits has the hottest startup of 2014 in valuation. The business insider further reports; Zenefits is on track to grow its user base 1,600% this year. In a little over a year, Zenefits has signed up more than 2,000 companies across 47 states, serving over 50,000 employees.
So what’s the USP; Zenefits core business centers around making money benefits providers. Small businesses across America have to buy health insurance for their employees, and they typically use middlemen brokers for the service. But Zenefits gives away cloud-based human resources software for free and lets businesses purchase insurance through their platform. Again, Zenefits charges customers nothing for that service — it instead charges a commission to the health insurance companies who sell the policies.
Zenefits promises to simplify enrollment, renewal, and onboarding process by providing powerful self service tools. For small business owners it’s a win win situation, with no cost at all companies can manager entire life cycle of an employee, Zenefits also provides reporting’s and integration with several other HR platforms which further makes it quite attractive, this is all free of cost.
More detailed customization, probably not, but if you are small business owners, you don’t really need to customize. Zenefits is strategically placing themselves for small business thus avoiding direct competition with high end HRIS solution providers in market.
Parker Conrad, a Harvard Graduate is Co founder and CEO , NYtimes profiles him; After a bout with testicular cancer a decade ago — from which he has recovered — Mr. Conrad became a self-taught expert on the byzantine particulars of the American health care market, and he is an ardent supporter of the Affordable Care Act, President Obama’s health reform law. Two years ago, after getting pushed out of his last job, Mr. Conrad realized that the new law was creating an opportunity for a start-up to remake the way small businesses buy health insurance.
Early part of Dec’14, David Sacks, the former CEO of Yammer and first COO of PayPal, has joined Zenefits and has brought in big investment as well. Sacks isn’t disclosing the size of the investment, but did say it was significant. “This is the biggest investment I’ve made in a startup, and it represents my commitment to the company,”