As benefits management startup Zenefits tries to regroup after a series of legal and financial setbacks has left it in disarray, its chief competitor is gleefully seizing an opportunity to strengthen its position in the world of HR services.
Roseland, New Jersey-based ADP has been recruiting those recently let go by Zenefits, which last year sparred with the 67-year-old company in court and through bombastic blog posts after ADP temporarily blocked Zenefits from accessing payroll data for shared clients. Zenefits does not provide its own payroll services, but helps companies that use other payroll providers, such as ADP, integrate that service with its benefit management platform.
Buzzfeed reports that Zenefits employees began receiving messages from ADP recruiters within hours of an announcement from the startup that it would lay off 106 workers, or roughly 9 percent of its staff. ADP will be conducting a round of hiring interviews directed solely at former Zenefits employees, the company said.
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