Zenefits Evolves Beyond Z2 to Up HR Productivity

February 27, 2017

Category: Zenefits

What’s the value of Zenefits’ HR software for organizations? To start, time-savings of 25 percent, according to a report by technology research firm, Nucleus Research.

The report, “Zenefits Evolves Beyond Z2 to Up HR Productivity,” outlines Zenefits’ journey from Z2 to HR One and analyzes the impact of our HR technology on organizational productivity.

Below is a section from the report on how Zenefits impacts key HR tasks:

Overall Administrative Workflow

Here is where Nucleus finds that Zenefits delivers the biggest potential gains in productivity. Several organizations employing 50 or fewer in staff claimed that Zenefits saved them approximately four weeks’ worth of administrative work yearly. When they experienced these savings, they were on a version of Zenefits that had yet to feature functionality found in Z2 and, later, HR|One.

Nucleus conservatively estimates that the functionality in HR|One would increase these organizations’ time saved by 25 percent – in other words, an additional week’s worth. Given that HR administrators would apply a large portion of these five weeks’ worth of saved time to other activity, Nucleus estimates that HR departments see a 6.7 percent gain in productivity under the auspices of Zenefits. In addition, employers noted that the deployment of Zenefits enabled them to avoid hiring more HR administrators. This is an avoided cost that directly affects the solution’s potential return on investment (ROI) – the average fully loaded cost of one HR administrator eclipses the fee that an employer of 45 in staff would pay annually for a Platinum-level HR|One SaaS subscription.


Several customers noted that new hires used to waste most of their first day completing paperwork; HCM technology from Zenefits helped new hires become productive sooner. For example, one fast-growing three-year Zenefits user, an employer of 150 in staff, had hired 50 new physical therapists over the immediately preceding 12 months. With Zenefits in place, all paperwork is completed ahead of time to make these newly hired physical therapist productive immediately upon start. Given the average annual fully loaded cost of a physical therapist in New York City, where this employer operates, the gain in productivity nearly covers the annual fee for a Gold-level HR|One SaaS subscription.


At especially small companies, company leadership may find itself doing the grunt work to avoid committing employment-related regulatory infractions. For an employer of 25 in staff, for instance, an SMB owner might spend 60 hours per year to ensure the organization’s compliance. Zenefits would automate a good deal of this work, Nucleus believes, to result in a 2 percent increase in productivity for company leadership. This calculation looks at productivity conventionally, of course, and Nucleus estimates that the long-term financial saving is likely far greater. That’s because any reduction in administrative 


Raised by small business owners in Long Beach, California, Sarah loves creating meaningful content that truly helps people run their businesses successfully and efficiently. In addition to being a Content Marketing Manager at Zenefits, Sarah is a coffee addict, baked-good lover, and a LA Clippers fan.

Category: Zenefits

You might also like