Today the Greater Phoenix Economic Council was joined by the Arizona Commerce Authority, Maricopa County and the City of Scottsdale in welcoming Zenefits to the Greater Phoenix region.
Zenefits, the free, cloud-based human resources technology company that automates and eliminates time-consuming paperwork for small and medium-sized businesses, announced today plans to create over 1,300 new full-time jobs over the next three years, and the launch of a new, nearly 100,000-square-foot office in Scottsdale, Ariz.
“We’re thrilled to open our new office in Scottsdale, which will allow Zenefits to meet the growing demand from thousands of small businesses who want to focus on their people instead of paperwork,” said Parker Conrad, CEO and co-founder of Zenefits. “The greater Phoenix area has a talented workforce and an expanding tech community, and Zenefits is excited to grow our team both here and in San Francisco.”
Zenefits is widely considered to be one of the fastest-growing tech companies in recent history. Its user base is on track to grow 1,600 percent in 2014, and in a little over one year in business, the company has signed up more than 2,000 businesses serving over 50,000 employees across 47 states.
This is the largest expansion from a California-based tech company into the Greater Phoenix region since PayPal in 2010. Zenefits has already hired 60 new local employees, and plans to expand to more than 1,300 full-time employees within the next three years. The company’s new office will occupy 94,000 square feet of office space in the Scottsdale Galleria Corporate Center.
“We want to welcome Zenefits to Scottsdale, where it joins a growing field of exciting and innovative tech companies who are drawn here by all the elements that ensure a motivated, skilled workforce, an outstanding quality of life and a positive business environment,” said Scottsdale Mayor W.J. “Jim” Lane. “We are delighted to welcome Zenefits to Scottsdale – they will be an incredible addition to our business community and our City’s economy.”
The expansion into Scottsdale will enable the company to meet the needs of its rapidly increasing customer base. Zenefits is now in the process of hiring a range of new employees for the Scottsdale office, including HR specialists, sales representatives, account managers and executives, and client support staff. Zenefits currently employs more than 390 workers in its San Francisco headquarters, up from just 15 at the beginning of the year.
“Zenefits is one of the fastest-growing tech companies in America, and we are tremendously excited that its leadership selected Arizona for a major expansion that will advance its corporate growth goals,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “Our state’s surging technology ecosystem and highly-educated workforce continue to attract innovative companies seeking to develop operational hubs to help drive business growth and enhance their competitiveness across the country.”
Zenefits automates a wide range of time-consuming, administrative HR tasks that companies otherwise have to handle manually, including: benefits and payroll, hiring, taxes and compliance, employee life events, health insurance and more. Zenefits’ cloud-based HR platform connects seamlessly to a company’s existing third-party benefits systems, so that businesses and employees can manage these systems from a single, beautifully designed dashboard.
“We are thrilled that Zenefits chose the Greater Phoenix region for its first big expansion,” said Barry Broome, President and CEO of the Greater Phoenix Economic Council. “Zenefits will provide a substantive impact to the innovation ecosystem, creating 1,300 new jobs in the ICT sector over the next three years, spurring growth and contributing to our broader economy.”
The core Zenefits service is 100 percent free to customers because it is able to collect fees from all kinds of benefit providers. This unique business model is one of the reasons Zenefits has been able to attract so many users so quickly. As of June, the company has raised $84 million from prominent investors including Andreessen Horowitz, Institutional Venture Partners (IVP), and Academy Award-winning actor and investor Jared Leto.