Zenefits Levels the Playing Field for Small Businesses: Technology with the Human Touch
The 10 Most Influential Leaders in Talent Acquisition Industry 2022
When Jay Fulcher came to grips with the
fact that his childhood dream to be an NFL quarterback was not to be, he
switched course. Growing up, he regularly helped family and friends with their
small businesses and saw firsthand what it took to conceive a business and
execute a business plan. So, it was a natural pivot for him to explore
entrepreneurship.
From working in the orchards of Santa Clara
Valley picking and packing fruit, to mowing lawns and painting houses, to
selling fitness equipment, Jay had a first row seat in seeing how small
businesses navigated the challenges and difficulties of finding customers,
doing quality work, getting reliable help, and ultimately seeing their hard
work result in something of value. This was a great training ground for a long,
successful career in business. And it provides the perfect perspective for what
is now his career capstone mission: leveling the playing field for small and
mid-sized businesses to better care for their people.
Jay Fulcher is the Chairman and CEO at
Zenefits, the leading human resource, benefits, and payroll software provider.
He shares here the inspiration, perspective and passion that informed his
personal journey and the unique path of the Zenefits business.
The Zeal of Zenefits
A serial entrepreneur and leader at some of
tech’s best-known companies such as SAP and PeopleSoft, with a stellar track
record of building and successfully exiting businesses via IPO, acquisition, or
both, Jay joined Zenefits in 2017.
A storied HR startup, Zenefits was cited in
2015 as the fastest-growing software company in history, But with the
record-breaking growth came significant issues in compliance and culture that
threatened this high-flying “unicorn.” After close due diligence, Jay
found great untapped strengths and accepted the role, only after he reviewed
board’s approval to pursue a unique path forward that he envisioned.
In his first year on the job, Jay built a
new leadership team, reset company values and culture, pivoted the business
model, moved from a freemium to a paid Software as a Service model, got out of
the broker business and instead powered the nation’s leading insurance brokers
with its products. This 180% reset, put the company in the position of
market-leading growth. This time the business is growing in a rational,
purposeful and aligned way with a solid infrastructure, plan, team, tools and
laser focus on the unique needs of small business customers at each stage of
their growth.
Zenefits most recently-completed fiscal
year is testament to that well-laid plan. The company grew its annual recurring
revenue by 78% in the fiscal year closed January 31 and their growth trajectory
continues. Zenefits products are currently in use at more than 11,000 customers
and the responses from existing and net new customers (more than 200 monthly on
average) reflects the company’s alignment with small business needs.
Zenefits Offers the Best
With their unique concept of delivering a
perfect balance of technology and services for each stage of a small business’
growth, Zenefits delivers an experience that meets and exceeds their customer’s
needs across the customer life cycle, from how they package and sell to how
they service and support businesses ranging in size from 25 to 500-plus
employees.
Most of Zenefits’ competitors are geared
toward huge businesses and corporations, but Zenefits software is built
specifically for the 99.7% of American businesses that fall into the Small and
Mid-size category. Zenefits levels the playing field for small business owners
by providing access to resources that in the “old” world of work, were not
feasible. From its HR, Benefits and Payroll software, Zenefits equips SMBs to
compete with their larger competitors for talent by making up for what they
lack in HR manpower, fringe benefits, and company culture. Zenefits customers
have cut costs, saved time, and increased efficiency in their HR and
administration by reducing paperwork. In fact, on average, Zenefits customers
each grew about 20% in the past year.
The Leader’s Opinion
Jay recognizes that there is always more to
be done to level the playing field for small businesses. Technology and the
world of work have been evolving constantly, for decades, with no signs of
stopping. He believes that no workplace is perfect, and no business is perfect,
so continuous improvement is always important to ensure better choice, cost,
compliance and growth options for small businesses, to compete on more even
footing with larger companies.
The mission of Zenefits customers keeps him
driven. He shares, “One of our customers, a non-profit organization called
GOALS for Autism, has a story that particularly motivates me. GOALS is
dedicated to providing at home services for developmentally challenged youth
and their families. They use our benefits platform to ensure that their own
employees —who work tirelessly every day to improve the lives of others— are
getting the care they need, too.”
GOALS’ CEO and founder Adryon Ketchum said
“Zenefits has given me the gift to stay afloat. At times, I’ve gone sleepless
worrying about getting everyone a paycheck. With more time to focus on our
business and our culture, we can achieve an even more meaningful level of
success, together.”
“I’m proud to lead a company that can
contribute to leveling the playing field for small businesses, their people
and, in turn, their customers, like GOALS for Autism does”, Jay adds.
Jay says that growing a company and leading
a team is one of the most rewarding things he had have ever done, and it is the
ultimate learning experience. He has always been drawn to challenging
opportunities, and to be part of something big and important, where the
potential impact can be profound. After spending years in various fields, Jay
learned that he is passionate about leading, building, and learning.
“I am grateful to be practicing my craft at
such a high-potential company with such a stellar team. I don’t take this
opportunity for granted, because it is a precious thing to be entrusted with a
leadership role like this one. Many depend on me, and I depend on them. Trust
is at the core of everything. I take great care in leading, mentoring, growing
and challenging my team by —as Stephen Covey says— ‘communicating their value
and worth so clearly that they begin to see it in themselves.’” Jay asserts.
Getting fresh air and outdoor exercise
plays a vital role in Jay’s ability to take stock, reset and persevere. Whether
it’s fly fishing or being on horseback or skiing or spending time with family,
those are the things that sustain and ground him and help him maintain a
balance between his professional and personal life.
The Visionary Eye of Zenefits
The Zenefits team is mindful of its
opportunity to work with so many inspiring and effective entrepreneurs in a
variety of industries, from hospitality to healthcare, and from professional
services to the nonprofit sector. Their goal is to continue to stay true to
their mission of helping small and mid-sized companies — the 99.7% of American
businesses — to compete on a level playing field with their larger competitors
by empowering them with technology that allows them to grow, stay compliant,
and offer the best benefits possible.
In the past year alone, Zenefits has
launched a new Well-being App that allows employers to target the root causes
of employee stress. It was built with the input of Industrial-Organizational
Psychologists, and allows employees to measure, monitor and understand their
well-being mindsets and behaviors so they are equipped to act for positive
change. Business owners can also leverage the app to measure and track
workforce well-being at the company or division level. They also recently
launched their Compensation Management tool, which leverages (anonymized) pay
data from across hundreds of thousands of SMB employees, nationwide. This
allows small business leaders to pinpoint competitive and fair pay for their
people by industry, role, level, and geography.
Headquartered in Silicon Valley where
innovation and “growth hacks” are prized, Zenefits is used to setting its own
course. Jay reminds his team —and countless entrepreneurs at forums
across the country where he speaks— that the “ultimate hack” isn’t a shortcut.
Instead, it is embracing the work, relishing the process, and being relentless
about learning and adjusting as you go. He also urges them to trust that if
they execute and pay attention to the details, the results will be there.
He might have not made it as the NFL
quarterback, but Jay Fulcher has led an impressive charge across his 30-year
career to out-maneuver the competition and deliver products and services that
are unique and warmly welcomed in the market.
“As the world of work, the definition of
wellness, and all the technology that supports us continues to evolve, we will
too”, says Jay Fulcher, a man who dreams big for small businesses everywhere.