Businesses must consider many factors when outsourcing their human resources functions. They need policies that keep them compliant with government and regulatory agencies while ensuring their teams receive the services they need.
Bambee and Gusto are well-respected human resources outsourcing (HRO) services that help with payroll processing, employee benefits, HR support, HR policies and more. However, depending on your business, one or the other might offer better support. We’ll compare each vendor’s services and pricing to help business owners choose the best HRO company for their needs.
Charges a flat monthly rate based on business size:
Charges a monthly rate plus a per-user cost:
First six months are free for individual subscribers with the contractor-level plan.
Custom HR policies
We recommend Bambee for startups and newer organizations that need compliance guidance. It provides dedicated HR support to help businesses navigate tricky issues and offers detailed analysis and guidance on the latest compliance regulations to ensure correct processes.
Bambee provides an intuitive user experience with a personal touch via browser-based software or an app. Its multiple, versatile automation tools can help businesses save time and optimize risk management efforts. For example, its unique AutoPilot tool helps businesses automatically stay current with the latest requirements no matter where they are. Bambee also regularly verifies that all policies are current and affirmed by each employee. Our in-depth Bambee review provides additional details about Bambee’s options and services.
Gusto is an excellent option for businesses seeking an affordable, comprehensive and easy-to-use HR solution. Its seamless onboarding process and interface provide a stellar user experience. If you have an in-house HR team, Gusto’s policy services and HR support will perfectly complement it.
Gusto’s standout features include comprehensive employee benefits options that help employers provide health, dental and vision coverage as well as commuter and wellness benefits. Its automated payroll features will save small businesses time and keep them compliant. Our complete Gusto review provides more information on how this platform simplifies even the most complicated HR tasks, like employee classifications and terminations.
Gusto’s clean, simple dashboard gives users an elegant user experience that helps them navigate the entire ecosystem. Source: Gusto
Bambee’s monthly pricing model is based on company size. It includes eight categories:
Bambee’s higher-tier plans include increased capacity for features like custom HR policies and job descriptions. However, the features are identical once you reach the 50-99-employee level. The only difference is how many employees you must support.
Gusto’s pricing options and service tiers are straightforward and based on a monthly flat rate and per-user costs:
We really like that Gusto’s pricing is affordable and scalable. Adding new users incurs an additional monthly cost that ranges from $6 to $12. Every service level offers robust HR features that will appeal to various business types and sizes. As you move up the service levels, you’ll gain access to more comprehensive capabilities, like onboarding and PTO tools.
Gusto’s company asset library stores crucial forms for different processes, like onboarding, employee classification and worker termination. Source: Gusto
Gusto wins the pricing round. It provides a versatile HR platform with straightforward service plans, transparent pricing and comprehensive functionality.
Bambee delivers solid payroll processing features, including payroll deductions, tax withholding preparations and two-day direct deposit.
We were impressed that Bambee’s payroll processing services include robust business guidance. Bambee helps customers avoid regulatory nightmares by providing in-depth insights. Bambee’s payroll guidance covers multiple regulations and procedures, including employee classification, scheduling and compensation laws, just to name a few.
Gusto offers all the standard payroll processing services you’d expect, including essential tools like two-day direct deposit and employee tax withholdings. However, Gusto takes its payroll processing service to the next level with features that help businesses comply with federal tax guidelines. For example, Gusto’s payroll automation feature, AutoPilot, will automate your payroll processing and, more importantly, automate your payroll tax filing as an employer.
Gusto also offers time and break management tools for employees to help businesses comply with the latest labor laws and regulations.
Gusto edges out Bambee in payroll processing. Gusto takes an extra step to help employers stay ahead of payroll processes through automation tools and functionality. It can help you stay compliant by accurately calculating employee withholdings and filing employer payroll taxes.
Bambee offers basic employee benefits functionality, but that’s about it. Tools to build benefits policies and a regulatory compliance knowledge base are available to help guide businesses. However, the vendor doesn’t provide actual policies or the tools to enable benefits.
Gusto’s employee benefits offerings impressed us. It provides multiple options that can fit any budget.
Beyond the basics, Gusto can help your business create unique benefits policies. It also provides an amazing array of options, including over 3,500 small-group health insurance choices, with hundreds of carrier and support options. Vision, dental and retirement plans as well as HSAs and FSAs are available to meet the specific needs of employees and their families.
Additionally, you can add commuter benefits programs to incentivize your team as well as provide various workers’ compensation options. Gusto takes a 360-degree approach to help ensure your team members get what they need.
Gusto is the clear winner in this category. It offers a wealth of features and functions to enable and administer employee benefits packages.
We really like that Bambee assigns an HR representative to each customer; this unique service helps guide businesses through straightforward human capital management processes, like onboarding, as well as more complex HR situations. For example, Bambee’s dedicated guidance can help with nuanced situations with impactful regulatory implications, like correctly classifying employees and following specific protocols when terminating employees.
Bambee provides a dedicated HR manager; you can easily access your rep via a service roadmap dashboard. Source: Bambee
We were pleased to see that Gusto provides customers with a team of certified HR professionals to provide high-level HR insights. This invaluable concierge service can help guide a growing team toward achieving completely HR-compliant practices.
Every Gusto HR expert has over 10 years of experience helping businesses conduct all HR processes, including creating employee handbooks and advising employees about the best benefits for their needs.
While this category was close, Gusto gets the win here. Both services provide HR guidance. However, Gusto’s services are next-level, with easily accessible hands-on support and access to expert-built templates that can save time and frustration.
Bambee’s risk management tools are impressive. The vendor stands out with its suite of custom HR policy tools and in-depth implementation services. An expert HR manager from Bambee will help you draft an initial set of custom HR policies, taking this burden off your plate so you can focus on growing the business.
Bambee gives your HR team the necessary tools to create clear, consistent policy guidelines to support your organization and avoid HR compliance and regulatory issues down the road.
Bambee’s HR policy dashboard shows the progress of compliance procedures for the entire team. Source: Bambee
Gusto doesn’t provide custom HR policy services.
Bambee is the clear winner in this category. It helps businesses develop consistent HR policies that minimize regulatory risks and keep your team aligned.
Choose Bambee if:
Choose Gusto if:
Allan Jones is the founder and CEO of Bambee. Along with founding Bambee in 2016, Jones also serves as an advisor to Comparably, is an official member of the Forbes Business Council and was previously the chief marketing officer for ZipRecruiter.
Lainie Cooney is the chief people officer (CPO) at Bambee. Cooney previously acted as CPO for FanDuel and Blue Apron. Cooney holds a master’s degree in clinical psychology.
Gusto can process payments up to two days before the check’s date. When an early deposit occurs, funds are usually deposited into an account early in the day.
Yes. Gusto lets you cancel any standard service anytime by signing in to your account and submitting a cancellation request with customer support.
When using the next-day deposit feature, Gusto deposits funds into employee accounts by 5 p.m. the next business day.
Yes. Gusto provides self-service tools through the app or web browser for employees to request time off from work.