Today, we’re honored to share that Fast Company has named Gusto the #1 Most Innovative Company in Human Resources.
This is the second year in a row that Fast Company has recognized Gusto for its commitment to simplifying HR, payroll, benefits, and compliance for the small businesses we serve every day.
This recognition isn’t just a milestone – it’s a testament to the value we provide today and to our ongoing mission to empower small business owners across the country.
Helping small businesses navigate the complexities of compliance
Every year, Fast Company receives thousands of submissions from innovative companies around the world, but only a select few make their list. So what helped us earn the top spot in Human Resources?
For over a decade, we’ve been focused on the needs of small businesses. While they make up 99.9% of American businesses, they’ve been historically underserved and face major barriers to accessing resources and support. We’ve also seen that most of our existing systems and regulations aren’t designed for their needs, making it harder for them to thrive.
A report from The Chamber of Commerce revealed a staggering reality – small businesses are spending an average of 200 hours a year and $11,700 per employee, just to meet their compliance requirements. This doesn’t even account for potential penalties, which can range from tens to hundreds of thousands of dollars – often threatening small businesses’ very existence.
While larger enterprises have entire departments dedicated to compliance, small businesses typically lack those resources. That’s where Gusto comes in. We’re committed to leveling the playing field, and our latest products are designed to make compliance manageable and straightforward.
Helping small businesses cut regulatory red tape
In February, we announced the launch of Gusto Compliance, a new product making it simpler for small businesses to navigate regulatory challenges.
From crucial government filings to employee training and benefits mandates, Gusto Compliance is designed to help business owners know what steps they need to take to ensure their businesses are doing things by the book.
Gusto Compliance provides ongoing monitoring, proactive alerts, and personalized guidance to help businesses navigate complex regulations effortlessly. It sorts through the maze of employment laws and regulations from multiple agencies, including state Departments of Labor, to help businesses stay on top of important compliance deadlines.
And critically, Gusto Compliance provides tailored updates and alerts, specifically designed for the needs of each business, when they need it. For example, as a business grows and reaches a certain employee size or hires workers in another state, Gusto Compliance provides timely alerts so they never have to worry about what to do next.
Harnessing AI to better manage compliance
In an era where many companies are building with AI for hype, rather than for genuine help, we’re taking a different approach. We’re using AI to help businesses untangle a complex web of compliance requirements.
As Fast Company reported in an exclusive in September 2024, our AI assistant, Gus, is designed to help small business owners save time and mental energy on manual tasks – like better understanding compliance rules.
For instance, business owners can ask questions like, “What are the overtime rules for non-exempt employees in California?” and receive clear, concise answers in plain English—complete with links to additional resources for deeper understanding.
But Gus doesn’t stop there. It also offers personalized insights to help business owners make informed decisions. One Gusto customer shared how Gus quickly clarified what payroll taxes he needed to deduct, saving him valuable time and mental energy. Soon Gus will also be able to support business owners with even more tasks, like suggesting shift schedules, updating employee handbooks, and creating custom documents.
Enabling businesses to compliantly train and take care of their teams
To further support our customers, we also recently introduced over 40 new courses focused on state-required compliance training, including anti-harassment and HIPAA compliance. These courses are now part of our extensive library, which also includes GDPR and data protection training.
Additionally, Gusto is now offering health insurance with built-in compliance across all 50 states, ensuring that businesses with employees in multiple states can take care of their teams while having peace of mind on their compliance requirements.
When our customers win, we win
We’re incredibly honored to be named Fast Company’s #1 Most Innovative Company in Human Resources this year. But more importantly, we’re excited to continue building for our customers – the 400,000+ small and mid-sized businesses that trust us to support their growth.
By supporting them with managing compliance – one of their thorniest, most complicated problems – we’re giving them more room to focus on growing their businesses and giving back to their communities. Their success is our success, and we’re committed to helping them drive their businesses forward.
