In recent rumored news, TriNet announced a significant layoff of Zenefits employees and the decision to discontinue the Zenefits HRIS-only plan, signaling a major shift in the company's strategy. The decision follows TriNet's acquisition of Zenefits in late 2021, and while many had hoped Zenefits would continue as a standalone HRIS offering, it’s now clear that TriNet is consolidating its offerings and moving away from supporting a purely HRIS solution.

What Does This Mean for Existing Zenefits Clients?

For businesses currently using Zenefits' HRIS-only plan, this change might feel like a sudden disruption. TriNet is no longer supporting this standalone HRIS option and will only be offering its more expensive ASO (Administrative Services Outsourcing) or PEO (Professional Employer Organization) plans.

This move marks the end of Zenefits as a cost-effective HRIS choice for many small and mid-sized businesses, leaving clients to navigate an often-complex transition. It's expected that TriNet will offer existing customers some time to adjust, but the timeline remains uncertain. Typically, companies sunsetting major products would provide 2-3 years for their clients to find new solutions—but the timeline here seems much faster.

Why This Change Was Inevitable

The writing had been on the wall since TriNet acquired Zenefits. While many assumed that TriNet would continue to support the Zenefits platform, the company's broader strategy to consolidate its offerings into PEO and ASO services made this transition almost inevitable. The closure of the standalone HRIS plan is a clear indicator that TriNet is stepping away from the HRIS-only market.

For businesses that relied on Zenefits’ affordable and streamlined HRIS solution, the move to TriNet's more expensive plans may feel like a tough pill to swallow. The increase in costs, along with the complexity of navigating ASO and PEO options, can add unnecessary challenges to companies already struggling with HR inefficiencies.

What Can You Do Now?

For companies affected by the change, it’s crucial to act quickly and start planning for the transition. If you’re currently using Zenefits for HRIS and will be impacted by this change, it’s vital to assess your options and identify the best solution for your business. This could include:

• Evaluating other HRIS platforms that are more aligned with your current needs and budget.
• Exploring PEO or ASO options, if you think these services will be a good fit.
• Seeking guidance from experts to help you navigate the complexities of these changes.

OutSail Can Help

At OutSail, we understand the challenges that come with significant HR platform changes. We specialize in helping businesses navigate transitions like this one and find the best solutions for their unique needs. If you’re affected by this news or just unsure about the next steps, we’re here to help.

Our team can guide you through the process of selecting a new HRIS or help you evaluate your options in the PEO/ASO space. Reach out to us for personalized recommendations and to explore the best course of action for your business.