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Click on the button below to subscribe and wait for a new Facebook message from the TC Messenger news bot. ZenPayroll is a two-year-old company that wants to change the way that people get paid, simple as that. Most small- and medium-sized businesses today don’t have a good system in place for doing payroll. To do that, ZenPayroll borrowed the idea of running a Google Ventures-like “design sprint.” Over the years, the investor’s design team has worked to perfect the art of the design sprint process, in which startups are asked to quickly re-examine and re-build their products over the course of just five days.
Google Ventures runs a bunch of design sprints with its portfolio companies, providing a structure for them to participate in ultra-fast iteration. The typical design sprint takes place over five days, during which the teams go through five distinct steps to development.
In a strange sort of way, it’s the constraints of the design sprint that enable more creativity, Reeves told me. In the case of ZenPayroll, the constraints meant both, as well as making quick decisions about what to include and what not to.
In the first step, the team spent an entire day — one-fifth of its allotted time — just doing as much research as possible to find out what’s wrong with current pay stubs.
Gusto was started in 2011 by best friends Josh, Tomer and Eddie to help every business in the world put people first. For PR Lead Steffi Wu, who was part of the design sprint team, the diverge phase of Day 2 — in which the team puts down as many ideas as possible on Post-Its — was the most important part of the process. Part of that ritual and delight was simply providing a more visual, more beautiful way to show the breakdown of an employee’s salary and where all of a person’s money went as part of its email notifications.


Another way that the company tried to delight users is by providing them with fun facts about the amount of money they made. All in all, ZenPayroll hopes to continue iterating on the way that it communicates with users. And now that it’s been through the design-sprint process once, ZenPayroll is a lot more likely to use it the next time the company is ready to re-imagine one of its products. Every couple of weeks, working stiffs get an envelope with a jumble of numbers on a plain white background that is meant to show them how much they’ve made over the course of the last pay period. Which is why a few months ago, payroll startup ZenPayroll spent a week redesigning the way it communicated with its users on payday. It does that on both sides of the equation, first by making it ultra-easy for employers to do payroll, and secondly by improving the actual experience of getting paid for employees.
Indeed, according to ZenPayroll CEO Joshua Reeves, the vast majority do it manually, which ends up leading to mistakes and fines levied against them for accounting disparities. So the company set out to change that, and to make the notification that an employee receives about their pay an actual enjoyable experience.
The process was born out of Google’s own internal efforts to quickly redesign various products over time, and the venture arm now does about 30 sprints with startups it’s invested in per year. Day 1 is all about understanding the problem, Day 2 is about coming up with as many possible ways of attacking it as possible, Day 3 is about choosing the best ideas to go forward with, Day 4 is about prototyping the new product or design, and Day 5 is for validating what the teams have come up with by showing the prototype to others. Since ZenPayroll has its own design team, the GV folks mostly lent a helping hand in structuring the process. That meant making it something employees could actually celebrate, instead of just filing away with other boring paperwork, never to be seen again.


That might seem like a lot, considering how little time the team had, but it helped to inform the next part of the process, which was to set down as many ideas as possible for how they could fundamentally change what payday looked like. In 2015, Gusto expanded our payroll service to all 50 states and opened a new office in Denver. A number of people don’t even bother looking at their pay stubs, but ZenPayroll hoped that by making them easier to understand, it would increase the likelihood that they’d open their payday notifications. After all, as Reeves told me, being a software-based company means always seeking to make your product better. ZenPayroll has built a system where they only need to put in employee information once and then the platform takes care of all recurring payments, while making one-time bonuses or hourly wages also easy to enter. A lot of people today get their pay direct-deposited into an account and never even look at their pay stub. For ZenPayroll the goal was to change the relationship that employees had with the boring pay stubs that they get every week.
They changed our name from ZenPayroll to Gusto to celebrate our customers' courage and passion.



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