Zenefits does not keep clients long return to Brokers

According to recently posted messages by insurance Brokers,  Zenefits is often successful in luring employer groups away from their current broker relationship.  This is generally done through the promise of impressive enrollment and payroll technology.

brokerHowever, employers soon realize that Zenefits does not have the capacity to provide the advisory and support services that local and regional brokers and agents can provide.

In a short period of time, the clients return to their previous brokers,  realizing that the technology advantage of Zenefits, does not surpass the TLC and advisory services that brokers provide.

Here are quotes from real brokers:

from  Susan in NYC;

Last year I lost 3 clients to Zenefits and they were all back in 3 months. Whenever I have a client or prospect brings them up I tell them about my clients experience and make intros to them to speak so they can get firsthand experience. Since then we haven’t lost a client to Zenefits. The biggest complaint my clients made was the knowledge and response time. They would call with what all of us in the business would consider an easy question and they would take a week plus to respond. 

As for companies we are using to offer a solution, Www.allay.io is basically a Zenefits that only works with brokers and has been a dream to work with. Also Benetrac that is owned by Paychex has been good too!

Good luck!

Susan Combs PPACA

From Nelson in Nashville:

An adviser sent me an email thread from an employer who was a Zenefits client at the time. Zenefits sent notice of a 16% renewal increase from the carrier, Aetna. The Zenefits broker attached Aetna’s 45-page renewal packet and offered that this was “slightly above the 12-15% average increase we are seeing across the board…. If you would like to set up a call to discuss some of the alternatives that Aetna laid out for you in the renewal packet, I would be happy to do that.”

The client’s email reply was “Sure we want to talk about that.” The client’s frustration level with Zenefits was so high that they signed an AOR with the new adviser within 10 minutes of the meeting.


Zenefits and ADP are Fighting and NOT Integrating


Zenefits is based upon the assumption that they can integrate with any payroll company.  I wonder how this will work when the nations #1 payroll company has blocked their access, and has now filed suit against them?

Zenefits, ADP dispute heats up with defamation lawsuit

Payroll services giant ADP filed a defamation lawsuit against Zenefits Tuesday, heating up a quarrel between the companies that ignited when ADP disabled Zenefits’ access to its systems for shared clients.

ADP says the company on June 4 disabled Zenefits’ access due to data security concerns and an alarming and “excessive and unnecessary demand on ADP’s servers.” Zenefits disputes the claim, saying it has found no security threats, nor any data traffic spikes. The HR tech firm calls the move by ADP an anti-competitive fear tactic.

“ADP’s business model is to offer a bundled solution to customers, and evidently they don’t want small businesses using Zenefits for the HR and benefits portion of their business. Instead, we believe ADP is using a tried and true tactic in enterprise software: Whenever a new, innovative company enters a market, the incumbent tries to spread fear, uncertainty and doubt about the new market entrant. This tactic is so common it even has an acronym — FUD (fear, uncertainty, & doubt),” Zenefits CEO and Co-founder Parker Conrad said in a June 9 blog post on the company’s website.

From:  http://eba.benefitnews.com/news/practice-management/zenefits-adp-dispute-heats-up-with-defamation-lawsuit-2746631-1.html?pg=1