Employ
RecruitRippling vs Gusto
In today’s fast-paced business environment, efficient management of human resources and payroll is crucial for companies of all sizes. As businesses grow and evolve, the need for robust, scalable, and user-friendly HR and payroll solutions becomes increasingly important. Two platforms that have gained significant traction in this space are Rippling and Gusto.
As we consider HR and payroll solutions, it’s worth noting the growing importance of Employer of Record (EOR) services in today’s global business landscape. An EOR acts as the legal employer for your workers in countries where you don’t have an entity, handling payroll, benefits, and compliance.
While neither Rippling nor Gusto offers full-fledged EOR services, understanding this concept is crucial as businesses consider international expansion. Both platforms do support multi-state employment within the US, which can be seen as a stepping stone towards more global workforce management needs.
Both Rippling and Gusto offer comprehensive HR and payroll management tools, but each has its unique strengths and approaches. This in-depth comparison aims to shed light on how these two industry leaders stack up against each other, helping you make an informed decision for your organization’s needs.
What You’ll Discover:
- In-Depth Feature Analysis: A thorough breakdown of the features and usability of both platforms.
- Pricing Comparison: A detailed look at the costs associated with each service to assist with effective budgeting.
- Pros and Cons: Unbiased assessments of the strengths and limitations of Rippling and Gusto.
As we delve into the offerings of Rippling and Gusto, we’ll explore key aspects that are critical for effective HR and payroll management. We’ll examine how these platforms handle payroll processing, including calculations, tax filings, and direct deposits, assessing the ease of use and accuracy of each system. Our comparison will also cover HR management capabilities, from onboarding to performance reviews, and how each platform streamlines these processes to enhance employee experiences.
Let’s dive into the details and discover whether Rippling or Gusto is the superior choice for your business’s HR and payroll needs, keeping in mind how they might support your company’s growth trajectory in an increasingly global business landscape.
Rippling vs Gusto Overview
Feature | Rippling | Gusto | Explanation |
User Reviews | G2: 4.8/5 Trustpilot: 4.4/5 | G2: 4.5/5 Trustpilot: 2.4/5 | Rippling has received very good customer reviews, while Gusto’s reviews are quite mixed. |
Pricing | $500-600/ employee per month; unknown contractor price | $399 or $599/international employee per month; $35 + $6 / contractor per month | Rippling doesn’t post its prices online, so we’ve only uncovered some of them. Gusto does, and its contractor price is very affordable. It charges $399/month for employees in India and the Philippines and $599 elsewhere. |
User-friendliness | Very good | Excellent | Both platforms have great reviews for ease of use. However, Rippling is quite difficult to implement. |
Customer Support | 24/7 live chat and phone support | 24/5 live chat (and phone support in the US) | Rippling has live chat support all the time, while Gusto has live support just 24/5. |
Integrations | Excellent | Excellent | Rippling has integrations with 600 HR, accounting, and financial apps. Gusto has integrations with nearly 200 apps. |
Data security | Excellent | Excellent | Rippling is GDPR and SOC2 compliant and both CSA STAR Level 2 and ISO 27001 certified. Gusto is HIPAA and SOC2-compliant. |
International hiring (EOR) | Very Good | Good | Rippling enables employee hiring in 29 countries and contractors in 185. Gusto offers only nine countries for employees but 120+ for contractors. |
Recruitment | Not offered | Good | Rippling has features for managing recruiting but doesn’t offer recruitment services. Gusto doesn’t recruit itself but integrates with its Gusto Recruiting job board. |
Benefits administration | Excellent | Excellent | Both platforms allow clients to give their workers add-on benefits like health insurance and pensions. |
Payroll | Very good | Very good | Rippling facilitates employee and contractor payments in multiple currencies. Gusto’s payroll services in the US are comprehensive but more limited for international teams. |
Comparison of Rippling vs Gusto
Rippling and Gusto are both platforms that offer international hiring opportunities. However, neither of them started out this way.
Rippling
Rippling was created as an HRIS, a human resources information system, to help businesses keep track of all of their employees and related needs in, as the platform calls it, a “single source of truth.” This platform was developed to include time-tracking, payroll, benefits administration, and all the other functions needed for an HR management system. It later added global payroll, contractor management, and EOR services.
Services Offered by Rippling
- HRIS Capabilities: Time-tracking, payroll, benefits administration, and other HR functions.
- Global Payroll: Management of payroll for international employees.
- Contractor Management: Tools to manage contractors worldwide.
- Employer of Record (EOR): Available in 29 countries, handling payroll, taxes, benefits, onboarding, and offboarding.
- Recruitment Management: Includes recruitment management and applicant tracking features.
Gusto
Gusto began life as a platform for contractor management in 2012. From helping US companies hire and pay contractors all over the country, it now offers contractor management in over 120 countries. It provides EOR services through a partnership with Remote, covering nine countries with plans for expansion.
The Gusto platform has also developed into an effective, standalone human resources management system or HRMS. Essentially the same as an HRIS, this platform offers payroll, PTO management, deductions, tax calculation, and all the other features needed to manage HR in a single software package.
Services Offered by Gusto
- Employer of Record (EOR): Offered in partnership with Remote, currently covering nine countries with plans to expand.
- Contractor Management: Initially for US contractors, now expanded to over 120 countries.
- HRMS Capabilities: Payroll, PTO management, deductions, tax calculation, and comprehensive HR functions.
- Applicant Tracking: Integrated with Gusto Recruiting to help employers find global talent.
Rippling Pricing
| Plan | Price per employee/contractor per month |
|---|---|
| Rippling EOR Services | Starting at $599 per employee per month |
| Rippling HR Platform | $35 per month |
| Rippling User Fees | $8 per person per month |
| Rippling Contractor Pricing | not publicly available; requires a quote |
Gusto Pricing
| Plan | Price per employee/contractor per month |
|---|---|
| Gusto Simple Plan | $40 per month + $6 per employee per month |
| Gusto Plus Plan | $80 per month + $12 per employee per month |
| Gusto Premium Plan | $180 per month + 22 per employee per month |
| Gusto Contractor ONLY | $35 per month + $6 per employee per month |
Key Differences
Service Expansion
- Rippling: Started as an HRIS and expanded to include global payroll, contractor management, and EOR services.
- Gusto: Began with contractor management and evolved into an HRMS, partnering with Remote to offer EOR services.
Global Reach
- Rippling: EOR services are available in 29 countries.
- Gusto: Through Remote, provides EOR services in nine countries, with plans to increase coverage.
Pricing Transparency
- Rippling: Does not provide online pricing for its services, requiring potential clients to obtain quotes.
- Gusto: Offers starting prices for many services online, though pricing can vary by service tier and add-ons.
Rippling excels in integrating a wide range of HR functions with a strong focus on EOR services in multiple countries. Gusto, initially focused on contractor management, has developed into a comprehensive HRMS with EOR capabilities through a partnership with Remote. Businesses should consider their specific needs regarding global reach, service expansion, and pricing transparency when choosing between these platforms.
Rippling Pros and Cons
As an HRIS provider that has expanded into EOR and contractor management services, Rippling has the following advantages and disadvantages:
- Pros
Extensive administration tools
Rippling was originally designed as an HRIS and works as a standalone HR management system. Its functionality includes payroll, tax calculations, paid time off (PTO), time tracking, applicant management, and many other necessary HR functions.
Mobile app
Rippling has a mobile app – Rippling HR, IT, and Finance – for iOS and Android devices. This app helps employees access benefits, request leave, submit expenses, and view their payslips.
Scalability
Rippling’s platform can accommodate enterprises with thousands of employees, making it a useful choice for companies that want to scale up.
Data security
Rippling is ISO 27001, ISO 27018, and CSA STAR Level 2 certified and SOC 1, 2, and 3 compliant.
Benefits packages
Rippling offers extensive add-on benefits packages that can be modified to comply with any nation’s standards. They include health, vision, dental, and life insurance as well as pensions for international employees. There are even more benefits available for US employees.
Extensive integration
This platform can integrate with an impressive 600 finance, HR, and communication apps to help move data and reports smoothly between platforms.
- Cons
Limited support for international hiring
Rippling lets businesses hire contractors in over 180 countries. Unlike other EOR providers that offer services in hundreds of countries, Rippling enables full-time employee hiring in just 29 countries.
Limited implementation support
According to user reviews, this system can be very difficult to implement and more support should be offered by Rippling to ease this pain point.
Complexity
Rippling has an intuitive and easy-to-use user interface (UI). However, it’s also a very extensive platform, which means it can take quite a long time to learn how to use its full functionality effectively.
No pricing online
Rippling’s prices aren’t available online for easy comparisons with other providers. You have to ask for a quote to see how much its services will cost your business.
Gusto Pros and Cons
Gusto is mostly focused on payroll, contractor management, and outsourced HR services in the US. The advantages and disadvantages of working with this platform include:
- Pros
Extensive administration tools
Gusto includes an extensive set of HR management tools, including payroll entry, PTO management, pre-tax deductions, tax calculation, and filing, check and W-2 printing and delivery, and direct deposit management. It offers three tiers of service for its platform, so only the top tier will include its full functionality.
User-friendly interface
Gusto’s UI is very easy and user-friendly. New users will appreciate this platform’s intuitive functionality.
Scalability
Like Rippling, Gusto can easily handle enterprises with thousands of employees, making it an effective choice for companies looking to scale.
Data security
Gusto is SOC 2 and HIPAA compliant. It uses advanced encryption and 2FA (two-factor authentication) to protect its clients’ data and privacy.
Mobile app
Gusto Wallet, Gusto’s mobile app for iOS and Android devices, lets employees manage their profiles, edit tax elections, and view their payslips conveniently.
Benefits packages
Gusto helps its clients provide benefits, including pensions and health, dental, vision, disability, and life insurance for international employees. Even more benefits are available for US employees.
- Cons
Limited support for international hiring
Gusto helps businesses hire contractors in 120+ countries around the world, though this is less than many competitors. It only offers EOR services through a partner in nine countries.
Limited support
While competitors offer 24/7 live support, Gusto only offers 24/5 live support through chat and phone, which means weekends can slow things down. User reviews also criticize Gusto’s service responses as often slow and unsatisfactory.
Head-to-Head Comparison: Rippling vs Gusto Features
We’ve seen the specific advantages and disadvantages of these two service providers individually. Now, it’s time to compare them directly. We’ll look at some of the main features that organizations look for in a GEP service provider and compare Rippling vs. Gusto to find out where each one excels.
User-friendly platform: It’s a tie
Both platforms have clear, simple UIs. New users find both easy to use, with reviews suggesting that Rippling may be slightly more intuitive. Rippling has also received better reviews for the attentiveness and quality of its support services. However, these services have been criticized when it comes to implementation. Gusto is seen as much easier to implement, and therefore, we’re calling it a tie.
Resources: It’s a tie
Gusto’s resources include many calculators for tax calculation, business planning, and payroll calculation in different states, as well as a useful blog and research and data publications. Rippling offers tools for analytics, global spend, and headcount and also has educational tools like Rippling University and webinars. These resources are quite even, so we’re calling this another tie.
Integration with other software: Rippling Wins
These two platforms offer some of the highest numbers of integrations of any service provider in the GEP space. Rippling is integrated with over 600 apps, including Asana, Checkr, GitHub, Slack, Salesforce, and other well-known finance, HR, and communications solutions. While Gusto can integrate with an impressive 200 software solutions, such as Google Workspace, Hubspot, Zendesk, Cloudflare, and Dropbox, it’s just not as connectable as Rippling.
International hiring (EOR): Rippling Wins
We’ve discovered that Rippling charges roughly $500-600 per employee each month for EOR services. It currently enables hiring in just 29 countries. Gusto, through its partner, Remote, offers EOR services in just nine countries. It charges $399/employee per month in the Philippines and India, which is a great price, but $599 in other countries. Until it adds more countries, Rippling simply provides more options.
Contractor Solution: Rippling Wins
Gusto helps organizations hire independent contractors in 120 countries. Its system makes it easy to manage invoices and pay contractors in a wide range of global currencies. However, Rippling offers support in more countries (188), and user reviews indicate that it makes managing contractors’ benefits, compliance, invoices, and payments even easier than Gusto.
Employee Benefits: It’s a tie
These two employers provide some of the most extensive benefits options in the GEP space. They let employers add on benefits like pensions and health insurance for international employees and can tailor these packages for compliance in different countries. Both providers can offer a far greater range of benefits for workers in the US. Neither provider gives its prices online, so we’ll have to rank them evenly.
Payroll Management: Rippling Wins
Rippling lets clients choose from 50 currencies to pay their invoices in and pays contractors in USD or their local currencies. Its payroll functionality is comprehensive and very easy to use. Gusto focuses on US compliance and effectively generates payslips, and automatically calculates taxes. Both platforms make managing payroll extremely easy and highly efficient; however, Rippling has slightly better reviews, so we’re handing this category to Rippling.
Our Verdict: Rippling vs Gusto
This head-to-head review of Rippling vs Gusto aimed to point to the different areas in which each of these professional global employment platforms shines. From these results, you should be able to make clear decisions about which service provider to use for the unique requirements of your business.
When to choose Rippling
Rippling performed better in almost every category we judged it on. If your business wants to use a single HRIS to manage its local employees and employees and contractors abroad, Rippling is a great solution.
When to choose Gusto
Gusto is an effective, easy-to-use HRMS that can handle all HR functions of your business. It makes managing contractors in the US and abroad easy. Also, if you want to look specifically for talent in the Philippines and India, Gusto offers a great price for a high standard of EOR service in these two countries.