BambooHR vs Gusto: Which HR Platform is Right for Your Business?

Choosing the right Human Resources (HR) software is a critical decision that impacts everything from payroll accuracy to employee engagement. When comparing BambooHR and Gusto, you're looking at two of the best platforms available, but they are built with fundamentally different philosophies. Making the right choice depends entirely on your company's size, priorities, and growth stage.

This comprehensive bamboohr vs gusto comparison breaks down the features, pricing, user experience, and ideal use cases for each platform. We'll explore where BambooHR shines as a dedicated Human Resources Information System (HRIS) and where Gusto excels as a payroll-first, all-in-one solution. By the end, you'll have a clear understanding of which tool is the best fit for your team.

In a Nutshell

• Core Focus: BambooHR is a comprehensive HR management platform focused on the entire employee lifecycle, from hiring to offboarding. Gusto is a payroll-first platform with strong HR and benefits features built around its core payroll engine.
• Ideal User: BambooHR is best for growing small to mid-sized businesses (50-500 employees) that need a powerful, centralized HR database and robust talent management tools. Gusto is ideal for startups and small businesses (under 100 employees) that prioritize easy-to-use, accurate payroll and benefits administration.
• Key Strength of BambooHR: Its Applicant Tracking System (ATS), performance management tools, and in-depth employee data reporting are top-tier for managing people operations.
• Key Strength of Gusto: It offers an incredibly user-friendly, automated payroll system with integrated benefits and straightforward, transparent pricing.
• Pricing Structure: Gusto provides clear, public pricing tiers, making it easy to budget. BambooHR uses a custom quote model, tailoring the price to your specific employee count and feature needs.

BambooHR vs Gusto: A Side-by-Side Comparison

To understand the fundamental differences, it helps to see their offerings next to each other. This table provides a high-level overview of the gusto vs bamboohr debate.

Feature	BambooHR	Gusto
Primary Function	Human Resources Information System (HRIS)	Full-Service Payroll & Benefits
Core HRIS	Excellent	Good (but less detailed)
Payroll	Available as a paid add-on	Core feature, best-in-class
Benefits Administration	Manages benefits data; partners for brokerage	Core feature with integrated brokerage
Applicant Tracking (ATS)	Built-in, comprehensive ATS	No native ATS; relies on integrations
Performance Management	Advanced (goals, peer feedback, reviews)	Basic (no formal review tools)
Onboarding	Highly customizable checklists and packets	Streamlined and simple
Pricing Model	Custom quote required	Transparent, tiered pricing
Ideal Company Size	50-500 employees	1-100 employees

An Overview of BambooHR and Gusto

Before diving into the details, let's establish what each platform is designed to do. They both operate in the HR space, but they come at it from different angles, which is the most important factor in the bamboohr or gusto decision.

What is BambooHR?

BambooHR is a cloud-based HRIS designed to be the central hub for all employee data and HR activities. Its mission is to set HR professionals free to do great work by automating tedious tasks and providing powerful tools for managing the entire employee lifecycle. It was built by HR people, for HR people.

Think of BambooHR as the system of record for your workforce. It excels at collecting, organizing, and analyzing employee information. Its strengths lie in people data, reporting, hiring, onboarding, and performance management. While it offers payroll as a premium add-on, its primary identity is that of a comprehensive HR management suite.

What is Gusto?

Gusto started as a payroll company with a mission to simplify one of the most complex and critical business functions. It has since expanded to become an all-in-one platform for payroll, benefits, and HR, specifically for small businesses. Its core strength remains its powerful yet simple payroll engine.

Gusto is designed to make life easier for business owners and office managers who wear many hats, including HR. The platform automates payroll taxes, benefits deductions, and compliance filings. Its HR tools are built to support its payroll and benefits functions, providing a seamless experience for paying and caring for a team.

A Deep Dive into BambooHR's Key Features

BambooHR's feature set is deep and geared toward strategic HR management. It provides the tools needed to not just manage employees, but to develop and retain them.

Centralized Employee Database (HRIS)

At its heart, BambooHR is a robust HRIS. It creates a single, secure database for all employee information, from contact details and job history to compensation and emergency contacts. This eliminates the need for messy spreadsheets and ensures data accuracy. The platform also includes powerful reporting and analytics tools, allowing HR managers to pull custom reports on headcount, turnover, and other key metrics.

Applicant Tracking System (ATS)

One of BambooHR's standout features is its built-in ATS. This tool streamlines the entire hiring process. You can create and post job openings to multiple job boards simultaneously, manage a pipeline of candidates, communicate with applicants, and collaborate with the hiring team. Once a candidate is hired, their data transfers directly into the HRIS, creating a smooth transition from applicant to employee.

Onboarding and Offboarding

BambooHR makes new hire onboarding a structured and welcoming experience. You can create custom onboarding packets with checklists, welcome messages, and required paperwork. New hires can complete their tasks and e-sign documents before their first day. The same structured approach applies to offboarding, ensuring a consistent and compliant process when an employee leaves.

Performance Management

This is another area where BambooHR truly shines. The Performance Management add-on provides tools for setting company-wide and individual goals, gathering 360-degree feedback from managers and peers, and conducting formal performance reviews. This feature helps companies build a culture of continuous improvement and employee development, moving beyond simple administrative HR.

Exploring Gusto's Core Capabilities

Gusto's features are designed for efficiency and ease of use, focusing on the critical tasks of paying your team and managing their benefits correctly and on time.

Full-Service Automated Payroll

This is Gusto's bread and butter. The platform automates nearly every aspect of payroll. It calculates and files federal, state, and local payroll taxes automatically. It handles direct deposits, wage garnishments, and year-end W-2 and 1099 forms.

With features like AutoPilot®, you can set your payroll to run automatically, making it a true set-it-and-forget-it solution for many businesses.

Integrated Benefits Administration

Gusto acts as a licensed health insurance broker in most states, allowing you to shop for, set up, and manage employee benefits directly within the platform. This includes medical, dental, and vision insurance, as well as 401(k) retirement plans, HSAs, FSAs, and commuter benefits. Deductions are automatically synced with payroll, which dramatically reduces administrative errors.

HR and Compliance Tools

While not as deep as BambooHR's, Gusto's HR tools are more than sufficient for most small businesses. It offers streamlined hiring and onboarding, including customizable offer letters and new hire checklists. It also provides access to certified HR experts and a compliance library to help businesses navigate complex labor laws and regulations.

Time and Project Tracking

Gusto includes tools for employees to track their hours, which then sync directly to payroll. This is essential for businesses with hourly workers. The platform also allows for basic project tracking, helping you understand labor costs associated with different projects or clients.

Pricing Comparison: BambooHR vs Gusto

The way these two companies approach pricing is a perfect reflection of their target audiences. One prioritizes transparency and predictability, while the other focuses on customization and scalability.

Gusto's Transparent Pricing Tiers

Gusto is famous for its straightforward pricing. It offers three main tiers, typically named Simple, Plus, and Premium. Each plan has a monthly base fee plus a per-employee, per-month cost. This model makes it incredibly easy for small businesses to predict their monthly expenses.

• Simple Plan: Covers all the payroll basics for single-state employers.
• Plus Plan: Adds multi-state payroll, next-day direct deposit, and more advanced HR tools like time tracking and project tracking.
• Premium Plan: Offers dedicated support, access to certified HR experts, and full compliance support.

Because the pricing is public, you can easily calculate your costs without ever talking to a salesperson. For the most current details, you should always visit the Gusto website.

BambooHR's Custom Quote Model

In contrast, BambooHR does not publish its pricing. To get a price, you must contact their sales team for a custom quote. The final cost depends on two main factors: the number of employees you have and the specific features you need.

BambooHR offers two main packages:

• Essentials: Includes the core HRIS, employee self-service, and standard support.
• Advantage: Adds more advanced features like the ATS, onboarding and offboarding, and more sophisticated reporting.

On top of these packages, key modules like Payroll, Performance Management, and Time Tracking are available as separate, paid add-ons. This à la carte approach allows you to build a package that fits your exact needs but also makes it impossible to know the cost upfront. This model is better suited for businesses that have a clear budget and specific HR needs they are solving for.

User Experience and Interface (UI)

How a platform feels to use every day is just as important as the features it offers. Both BambooHR and Gusto are well-designed, but they cater to different user sensibilities.

BambooHR: Professional and Data-Driven

BambooHR's interface is clean, organized, and professional. It's designed for HR managers who need to access and manage large amounts of employee data efficiently. The navigation is logical, with clear tabs for different HR functions like "My Info," "People," "Files," and "Reports."

While it's easy to navigate, the depth of its features means there can be a learning curve for new users. It feels like a powerful tool designed for a specialist. The employee-facing side is simpler, allowing staff to easily request time off, view their information, and access the company directory. The mobile app is also highly functional, bringing key HR tasks to your phone.

Gusto: Friendly and Intuitive

Gusto's user interface is often described as delightful and intuitive. It uses a friendly, conversational tone and a modern design that makes complex tasks like running payroll feel simple. The dashboard provides clear reminders for upcoming tasks, and the step-by-step workflows guide you through processes without confusion.

This user-centric design extends to employees. The employee dashboard is clean and easy to understand, showing pay stubs, benefits information, and tax documents in one place. Gusto's focus on a positive user experience is a major reason for its popularity among small businesses where the person running payroll isn't always an expert.

Pro Tip: When evaluating UI, consider who will use the software most. If it's a dedicated HR manager, the data-rich interface of BambooHR is a plus. If it's a founder or office manager, Gusto's guided, user-friendly approach might be a better fit.

Integrations and Compatibility

No HR platform exists in a vacuum. The ability to connect with other business software is crucial for creating an efficient workflow. Both platforms offer robust integration marketplaces, but with different areas of focus.

BambooHR's Marketplace is extensive, featuring over 125 integrations with other best-in-class software. The strategy here is to allow companies to build a customized HR tech stack. Key integration categories include:

• Recruiting: Connects with other powerful ATS platforms like Greenhouse and Lever.
• Productivity: Integrates with tools like Slack and Google Workspace.
• Learning Management: Works with LMS platforms for employee training.
• Accounting: Syncs with software like QuickBooks and Xero.

Gusto also offers a wide range of integrations, but its focus is more on creating a seamless financial and operational ecosystem around its payroll engine. Popular integrations include:

• Accounting: Deep integrations with QuickBooks, Xero, and FreshBooks.
• Time Tracking: Connects with TSheets (now QuickBooks Time), Deputy, and When I Work.
• Expense Management: Works with platforms like Expensify and Receipt Bank.

Essentially, BambooHR integrates to let you build a broader HR ecosystem, while Gusto integrates to streamline the financial operations connected to payroll.

Customer Support and Resources

When you're dealing with something as sensitive as payroll or employee data, reliable customer support is non-negotiable.

BambooHR Support

BambooHR offers customer support via phone, chat, and email. The quality of support is generally considered very good. They also provide a comprehensive help center with articles, guides, and video tutorials. For new customers, they offer implementation packages to ensure the software is set up correctly from the start.

The level of dedicated support may vary depending on the plan you choose.

Gusto Support

Gusto is widely praised for its excellent customer support. Support is available via phone, email, and chat for all paying customers. Their support team is known for being friendly, knowledgeable, and responsive. In addition to direct support, Gusto has an extensive library of help articles and an HR resource center that provides valuable information for small business owners on compliance and best practices.

Target Audience: Who Should Use Each Software?

This is the most important question in the bamboohr vs gusto debate. The best software is the one that aligns with your company's specific needs.

You Should Choose BambooHR If…

• You are a mid-sized business or a fast-growing startup (50+ employees). Your HR needs are becoming too complex for basic tools or spreadsheets.
• Your top priority is strategic HR. You want to focus on talent management, building a strong company culture, and using data to make people decisions.
• You need a powerful Applicant Tracking System. Hiring is a major focus, and you need a dedicated tool to manage your recruitment pipeline.
• You already have a payroll system you like. BambooHR integrates with many payroll providers, so you can use it as your core HRIS without switching how you pay your team.

You Should Choose Gusto If…

• You are a startup or small business (under 100 employees). Your primary need is to run payroll accurately and efficiently.
• Simplicity and ease of use are your top priorities. You need a platform that you or a non-HR professional can manage without extensive training.
• You want an all-in-one solution for payroll and benefits. You prefer having everything under one roof with a single, predictable bill.
• You operate in multiple states. Gusto's Plus and Premium plans make managing multi-state payroll and tax compliance simple.

Pros and Cons of BambooHR

Pros

• Comprehensive HRIS: A true system of record for all employee data.
• Excellent ATS: A powerful, integrated tool for managing the entire hiring lifecycle.
• Advanced Performance Management: Tools for goals, feedback, and reviews help develop talent.
• Highly Customizable: You can tailor fields, reports, and workflows to your company's needs.
• Strong Integration Marketplace: Connects with a wide range of other HR and business tools.

Cons

• Opaque Pricing: You can't know the cost without going through a sales process.
• Payroll is a Paid Add-on: It's not included in the core packages and adds to the total cost.
• Can Be Complex: The depth of features can be overwhelming for very small businesses with simple needs.

Pros and Cons of Gusto

Pros

• Best-in-Class Payroll: Automated, accurate, and incredibly easy to use.
• Transparent Pricing: You know exactly what you'll pay each month.
• Integrated Benefits: Seamlessly manage health insurance and other benefits alongside payroll.
• Exceptional User Experience: The platform is intuitive and friendly for both admins and employees.
• Strong Customer Support: Widely recognized for providing helpful and responsive support.

Cons

• No Native ATS: Lacks a built-in tool for managing recruitment.
• Limited Performance Management: Does not offer formal tools for performance reviews or goal tracking.
• HR Features are Less Robust: While good for basics, the HR tools are not as deep as a dedicated HRIS like BambooHR.

Frequently Asked Questions (FAQ)

Is BambooHR payroll good?

Yes, BambooHR's payroll add-on is a solid and reliable solution. Its main advantage is its seamless integration with the core HRIS, meaning all employee data, time tracking, and benefits information sync automatically. This reduces manual data entry and minimizes errors. However, it is an add-on and may not be as feature-rich or cost-effective as specialized payroll platforms like Gusto, which have made payroll their central focus.

Does BambooHR have a payroll system?

Yes, BambooHR offers a full-service payroll system as a paid add-on to its core HR software. It is available for U.S.-based employees and handles tax filing, direct deposit, and year-end reporting. It is not included in the standard Essentials or Advantage packages and must be purchased separately.

Why do companies use BambooHR?

Companies use BambooHR to centralize all their employee data and automate HR processes. It serves as a single source of truth for the entire employee lifecycle, from hiring and onboarding to performance management and offboarding. This helps HR departments become more strategic by freeing them from administrative tasks and providing them with the data needed to make informed decisions about their workforce.

Is Gusto the best payroll software?

Gusto is widely considered one of the best payroll software solutions on the market, especially for small to mid-sized businesses. Its popularity stems from its exceptional ease of use, transparent pricing, and powerful automation that handles complex tax filings. While other platforms may offer more enterprise-level features, Gusto's combination of user-friendliness and comprehensive payroll and benefits management makes it a top choice for its target audience.

How much does BambooHR payroll cost?

The cost of BambooHR's payroll add-on is not publicly listed. Like the core software, its price is based on your number of employees and is provided as part of a custom quote. You must contact their sales team to get specific pricing for your organization.

Why is Gusto so popular?

Gusto's popularity comes from its focus on simplifying a historically complicated process. It took the pain out of payroll for small business owners with an intuitive interface, automated tax compliance, and integrated benefits. Its friendly branding and excellent customer support have also contributed to building a loyal user base that feels supported by the platform.

Final Thoughts: Making the Right Choice

Choosing between BambooHR and Gusto isn't about picking a "better" software; it's about selecting the right tool for the job you need to do. The decision comes down to your company's primary pain point.

If your biggest challenge is managing people, fostering development, and streamlining your hiring process, BambooHR is the clear choice. It's a strategic HR platform built to help you manage and grow your talent. Its power lies in its ability to organize people data and provide tools that impact the entire employee experience.

If your main challenge is ensuring your team is paid accurately and on time with minimal hassle, Gusto is the answer. It's a best-in-class payroll and benefits engine that simplifies the most critical financial obligations you have to your employees. Its all-in-one, user-friendly approach is perfect for businesses that need a reliable and efficient solution.

For growing businesses that need a powerful HR foundation, we recommend exploring what BambooHR has to offer. You can visit BambooHR's website to request a demo and get a custom quote tailored to your company's specific needs.