1.
RELAX:
How to Compete Against Zenefits

2.
Private & Confidential
Agenda:
• Who is Zenefits?
• The Pros and Cons of Zenefits
• Panelist
• How InfinityHR can help

3.
Private & Confidential
Who is Zenefits?
• Established in 2013.
• Went from 15 to 500 employees in 2014; they have over 1,000 so far and
are projected to hire 1,300 more employees over the next 3 years.
• 2014 Revenue was $20 million, estimated revenue for 2015 is $100
million.
• Signed up over 10,000 businesses in 2 years.
• Marketing budget is huge.
• Zenefits claims to offer their HR services for free. The catch? They must
become the broker of record.

4.
Private & Confidential
Who is Zenefits?
Recent Troubles for Zenefits
• Utah Insurance Department: In 2014, the state of Utah banned Zenefits
from doing business in their state for rebating and therefore illegal. That
ban was lifted in the spring of 2015.
• ADP: In June of 2015, ADP sued Zenefits, charging the company with
defamation, false advertising, intentionally interfering with customers and
unfair competition.
• ADP has since blocked Zenefits access to its payroll data and maintains
they never integrated with Zenefits to access their payroll system.
• Zenefits responded with offering 850 mutual clients $1,000 to switch to a
different payroll provider.

5.
Private & Confidential
Pros and Cons
• Benefits, Payroll, FSA, and COBRA
• Connecting to Carriers
• Onboarding Compliance
• PTO/Time
• Benefits
• No Contract
• Free

6.
Private & Confidential
Pros and Cons
• All eggs in one basket (Benefits, Payroll, FSA, COBRA)
• No Designated Representative
• Limited Payroll Providers (ADP, Paylocity, Paychex, and Intuit)
• Client must give the BOR to Zenefits
• Do Zenefits Brokers think outside the box with their package offerings?
• No Personal Broker Relationship
• Possible Termination if the client obtains insurance services elsewhere

7.
Private & Confidential
Pros and Cons, Continued
• Zenefits does not have the ability to track the entire life cycle
of an employee
• No Performance or Recruiting Module
• Overworked Staff and Poor Benefits
• Staff offices being relocated almost weekly
• Free? Not always!
• Fees are charged for complex functions

8.
Private & Confidential
Pros and Cons, Continued
• Zenefits Job Openings as of early August, 2015
• 27 Sales and Marketing Staff
• 9 Support
• 7 Benefits
• 2 Carrier Operations

9.
Private & Confidential
Pros and Cons, Closing
• InfinityHR provides clients with the flexibility to work with any
Payroll Company, Broker, Carrier, and FSA/COBRA
administrator
• InfinityHR has the ability to track the entire life cycle of the
employee
• InfinityHR provides a designated team
• InfinityHR has focused recent staff recruiting on
Implementation, Servicing, and Development