The HR software market is projected to grow to $33.57 billion by 2028, with a compound annual growth rate of over 10%. This growth underscores the increasing reliance on HR tools to streamline workforce management and improve organizational efficiency.
Among the leading players in this evolving market are Gusto and BambooHR, two widely recognized platforms that cater to businesses seeking streamlined HR processes. Both Gusto and BambooHR offer unique features designed to simplify HR operations, but which one truly stands out?
This blog will explore a detailed comparison of Gusto and BambooHR, helping you determine which software best fits your organization’s unique needs. By the end, you’ll have a clearer understanding of which software aligns best with your requirements.
Gusto Vs. BambooHR: At A Glance
Features
Gusto
BambooHR
Payroll
Files taxes and calculates and syncs team’s PTOs, hours, and holidays automatically
Seamless payroll runs and reporting along with automated tax filings from a single source of data
Employee Benefits
Offers several employee benefits, including health, financial, retirement, and wellness fitness tools
Includes several benefits administration tools, such as health plans, onboarding elections, annual open enrollment
Hiring And Onboarding
Provides several hiring and onboarding tools, including job posts, personalized offer letters, custom onboarding, applicant tracking, and more.
Helps to find, evaluate, hire, and onboard outstanding talent via its applicant tracking, new hire onboarding, and offboarding capabilities
Performance Management
Includes several tools, such as self-evaluations, manager reviews, and career development resources
Manages employee performance via several features, including 360-degree feedback, customizable questions, and more
Integrations
Integrates with several third-party accounting, business operations, and learning management applications, including Zoom, Microsoft 365, Google Workspace, and Slack software
125+ pre-built integration with applications from various categories, including payroll, applicant tracking systems, and performance apps
What Is Gusto?
Gusto HR Software is a cloud-based payroll company that first introduced its human resources information system (HRIS) functions and later streamlined payroll, benefits, and HR processes for small to medium-sized businesses. Recognized as one of the top HR and payroll solutions in the industry, Gusto not only offers standard payroll features but also integrates extensive benefits management features, ensuring that businesses can provide support to their employees.
Unique Features Of Gusto
Payroll Reports: Generates detailed payroll reports, providing valuable insights into payroll expenses and helping businesses make informed financial decisions
Automated Taxes: Automatically calculates, files, and pays federal, state, and local payroll taxes, ensuring compliance and reducing administrative burdens
Paperless Paychecks: Supports digital paychecks through direct deposit, making payroll processing more efficient and reducing the need for physical checks
Employee Management: Offers several tools, including onboarding, performance reviews, and benefits administration, to streamline HR processes and enhance employee experience
Who Are The Main Users Of Gusto?
The following industries use the platform:
Food and beverages
Trucking
Retail
Manufacturing
Healthcare
Hospitality
Pros And Cons Of Gusto
Pros
Displays detailed pay breakdowns and W-2s
Centralized view of all employee benefits
Automation ensures a hassle-free experience
Cons
Cannot adjust the clock-out time for future hours
FSA claims are often denied despite accurate documents
What Is BambooHR?
BambooHR is cloud-based human resources (HR) software for small to medium-sized businesses. It offers several HR solutions, including payroll, time tracking, benefits administration, and applicant tracking, all within a single platform. Recognized for its user-friendly interface, BambooHR simplifies HR tasks, making it easy for businesses to manage their workforce effectively.
Unique Features Of BambooHR
Reporting And Analytics: Offers deep insights into HR metrics to support strategic decision-making and improve workforce management
Applicant Tracking System (ATS): Streamlines the hiring process by managing job postings, candidate tracking, and communication, ensuring an efficient and organized recruitment workflow
Time Tracking: Simplifies time tracking with tools for logging hours worked, managing PTO, and generating time-off reports, which helps businesses maintain accurate attendance records
Performance Management: Provides several tools, including goal setting and performance reviews, to support employee development and improve overall organizational performance
Who Are The Main Users Of BambooHR?
The following industries use BambooHR:
Finance
Construction
Education
Information technology
Healthcare
Pros And Cons Of BambooHR
Pros
Enables employees to manage their own records
Facilitates easy e-signature of documents
Streamlines HR tasks and ensures compliance
Cons
Manual scanning is required for non-digital docs
Pricing may be high for startups
Gusto Vs BambooHR – Key Feature Comparison
Hiring And Onboarding
Gusto offers a streamlined hiring process with features like custom job posts, job board syndication, centralized applicant tracking, and offer letter templates. The onboarding process is equally efficient, with custom checklists, document storage, e-signatures, and background checks.
BambooHR focuses on creating a seamless hiring and onboarding experience. Its applicant tracking system helps find and hire the right talent quickly, while customizable new-hire packets and welcome emails ensure new employees feel supported from day one.
Winner: Although both Gusto and BambooHR offer comprehensive hiring and onboarding tools, BambooHR takes a slight edge here due to its emphasis on creating a personalized onboarding experience.
Talent Management
Gusto enhances performance management with customizable review cycles, real-time 360-degree feedback, and automated workflows. It supports open communication and culture-building with tools for self-evaluations, peer reviews, and goal tracking, improving employee engagement and productivity.
BambooHR offers a comprehensive performance management system featuring 360-degree feedback, self reviews, and customizable evaluation processes. It emphasizes continuous feedback and development, with automated reminders and detailed performance reports to help managers support employee growth effectively.
Winner: BambooHR takes the lead here because of its extensive performance management tools that focus on continuous feedback and development, providing a more versatile approach to employee performance improvement.
Payroll
Gusto offers a user-friendly payroll system that includes unlimited payroll runs, automated tax filing, and integrated benefits and time tracking. Designed initially as a payroll solution, Gusto excels in this area with features like AutoPilot for automatic payroll runs and comprehensive support for both hourly and salaried employees.
BambooHR also provides a streamlined payroll process with no double data entry, comprehensive payroll reporting, and full-service tax filing. It integrates time tracking, benefits administration, and time-off requests into one platform, ensuring accurate and stress-free paydays.
Winner: Gusto is a better choice due to its origins as a payroll solution and advanced features like AutoPilot and extensive payroll-specific integrations, making it highly specialized and efficient for payroll processing.
Reporting And Analytics
Gusto offers customizable reports, anonymous team surveys, automatic compliance alerts, and detailed insights to help businesses make informed decisions. It also provides tools for survey trend analysis, custom reports, workforce cost analysis, and uncovering hidden tax credits. The platform automates tasks like compiling reports and identifying tax credits, saving time and money.
BambooHR provides instant, detailed HR reports, dynamic dashboards, and custom report templates. It offers comprehensive payroll reporting, workforce planning, and approval tracking. The software’s analytics are integrated into every feature, allowing for proactive decision-making and strategic insights.
Winner: Gusto takes the lead here due to its detailed and automated reporting and analytics tools, including extensive automation and insights, to help businesses make data-driven decisions and save time.
Pricing
The vendor offers the following three Gusto pricing plans:
Simple: $40/month with an additional $6/person/month (suitable for small businesses that require basic payroll solutions)
Plus: $80/month with an additional $12/person/month (suitable for evolving teams that require advanced payroll, HR, and time-tracking features)
Premium: $180/month with an additional $22/person/month (suitable for growing businesses that require comprehensive payroll, benefits, and HR solutions)
The vendor offers the following two BambooHR pricing plans:
Core: Custom pricing suitable for businesses looking for foundational HR automation and insights
Pro: Custom pricing for companies seeking a complete and flexible HR platform
Winner: BambooHR's custom pricing approach allows for greater flexibility and scalability, making it a better choice for businesses of varying sizes and needs.
Making The Final Choice: Gusto Or BambooHR?
Gusto and BambooHR both offer impressive payroll and HR solutions. Gusto excels with its payroll processing, seamless automation, and benefits management tools, making it an excellent choice for businesses that prioritize efficient payroll operations and employee wellness. BambooHR shines with its HR capabilities, including detailed performance management and flexible reporting and analytics.
When choosing between Gusto and BambooHR, consider your specific business needs, budget, and whether payroll or broader HR features are more important to you. Both platforms provide valuable tools to enhance operational efficiency and employee satisfaction, so aligning their features with your business goals will ensure you select the right solution.
