BambooHR vs Gusto
A detailed comparison of BambooHR and Gusto. See how they stack up on features, pricing, and user ratings.
At a Glance
| BambooHR | Gusto | |
|---|---|---|
| Rating | 4.4/5 | 4.5/5 |
| Starting Price | N/A | $40/mo |
| Free Trial | Yes | No |
| Free Plan | No | No |
| Features | 11 | 9 |
| Best For | SMB | SMB |
This comparison comes up for small businesses that need both HR and payroll — but these tools approach the problem from opposite directions.
BambooHR (founded 2008, rated 4.4/5) is an HR-first platform that added payroll. Custom pricing (per employee/month). Its strengths are employee onboarding, PTO management, performance reviews, employee self-service, and organisational charts. BambooHR's payroll module was added later and covers US payroll — it works, but it's not the product's core strength. BambooHR is the better choice if HR management is your primary need and payroll is secondary.
Gusto (founded 2011, rated 4.5/5) is a payroll-first platform that added HR tools. Starting at $40/month + $6/person. Its strengths are payroll processing, tax filing, benefits administration, and compliance. Gusto has added hiring tools, time tracking, and basic HR features — functional but not as deep as BambooHR's HR capabilities. Gusto is the better choice if payroll and benefits are your primary need and HR management is secondary.
Neither is a complete replacement for the other. BambooHR is stronger on people management; Gusto is stronger on payroll and benefits. Some companies use both.
Editor's Note
Primary need is payroll and benefits? Gusto — purpose-built for payroll with transparent pricing. Primary need is HR management, onboarding, and performance? BambooHR — deeper HR tools across the employee lifecycle. Need both equally? Consider Rippling, which combines strong payroll and HR in one platform, or run BambooHR for HR and Gusto for payroll — they integrate.
Key Differences
BambooHR and Gusto share 9 features. BambooHR has 2+ unique features.
Only in BambooHR
- Email Templates
- Offer Management
BambooHR
All-in-one HR platform with strong onboarding capabilities including customisable new-hire packets, e-signatures, task checklists, and employee self-service for small and mid-sized businesses.
Gusto
Cloud-based payroll and HR platform for small businesses handling payroll processing, benefits administration, time tracking, hiring, and compliance in one system.
Feature Comparison
| Feature | BambooHR | Gusto |
|---|---|---|
| Workflow Automation | ||
| Reporting Dashboard | ||
| Email Templates | ||
| EEO/OFCCP Compliance | ||
| GDPR Compliance | ||
| Offer Management | ||
| API Access | ||
| HRIS Integration | ||
| Slack Integration | ||
| Zapier Integration | ||
| Mobile App |
Pricing Comparison
BambooHR
Gusto
Integrations
Both tools integrate with
Only BambooHR
Only Gusto
Pros & Cons
BambooHR
Pros
- +Intuitive, clean interface that HR teams love
- +Excellent employee self-service portal
- +Strong onboarding and offboarding workflows
- +Good reporting and analytics for mid-market
Cons
- -Pricing not transparent — requires a call
- -Payroll only available in US
- -ATS is basic compared to dedicated tools
- -Limited customisation on lower tiers
Gusto
Pros
- +Best-in-class payroll for small businesses
- +Very easy to set up and use
- +Transparent, affordable pricing
- +Excellent employee self-service portal
Cons
- -Limited to US-based companies (mostly)
- -HR features less deep than dedicated HRIS tools
- -Reporting not as robust as enterprise solutions
- -Not ideal for companies over 200 employees
Which Should You Choose?
Choose BambooHR if:
- • Your company is SMB size
- • You want to try before committing (free trial available)
- • You need a more feature-rich solution (11 vs 9 features)
- • Intuitive, clean interface that HR teams love
Choose Gusto if:
- • Your company is SMB size
- • Higher user ratings matter to you (4.5 vs 4.4)
- • Best-in-class payroll for small businesses
Frequently Asked Questions
Does BambooHR include payroll?
Yes, BambooHR offers a payroll add-on for US companies. It handles basic payroll processing and tax filings. However, payroll is not BambooHR's core strength — if payroll and benefits administration are your primary needs, Gusto or a dedicated payroll platform will offer more depth.
Can Gusto handle performance reviews?
Gusto has basic performance review features, but they're limited compared to BambooHR's performance management tools. If structured performance reviews, goal tracking, and employee development are important to your HR processes, BambooHR is the stronger choice.
Which is more affordable?
Gusto has transparent pricing starting at $40/month + $6/person. BambooHR uses custom pricing and doesn't publish rates. For most small businesses, Gusto is typically less expensive, but BambooHR's custom quotes can be competitive depending on company size and the features you need.
Building a shortlist?
Download our spreadsheet with 130 tools compared — ratings, pricing, free plans, and categories. Makes evaluation easier.
Free download. No spam. Includes pricing, ratings, and free plan data for 130 tools.
Your spreadsheet is ready
Download the CSV now — 130 tools with ratings, pricing, and free plans.
Explore next:
How we evaluate tools
Our ratings combine verified user reviews from G2 and Capterra with hands-on feature analysis. Pricing is checked against official sources. We may earn a commission through affiliate links, but this never influences our rankings or recommendations. Read our full methodology.