Zenefits has been growing with a simple but innovative business plan. They offer businesses user-friendly HR software for free, while collecting revenues from health care providers by acting as a broker. To make it as simple as possible for their clients, they offer integrations to a few payroll providers and a few payroll softwares.
So, why does this bother ADP? Simple, ADP is a competitor in the employee benefits industry, and Zenefits is growing at a rate that is unheard of, with large and powerful investors backing them.
ADP’s answer to the growing threat of Zenefits is to begin blocking Zenefits integration with ADP. They are claiming there are security concerns with Zenefits access to data. This block comes despite Zenefits clients giving them authorization to access their information. This has since resulted in a lawsuit filed by ADP.
Who Really Loses?
Let’s ignore the fact that two multi-billion dollar companies are in a dispute that is based on wanting to make more money for themselves, and go into who it truly affects.
It truly affects the small businesses that are using both services. Both companies main goal should be to make their client’s lives easier. This dispute is doing the exact opposite. They have lost sight over who really matters, their clients!
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