3 Best European Gusto Alternatives in 2026
Sovereignty-first software picks, all built in Europe — hand-picked to replace Gusto.
Our top pick this year is Factorial — but every option on this list is European-owned, GDPR-native, and production-ready. Worth a closer look: WorkFlex, Personio.
Most picks fall under HR & Recruitment. Jump into any of those categories if you want a wider shortlist beyond this list.
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Manage HR, payroll, time tracking, recruitment, and performance reviews for your whole team — all-in-one, GDPR-compliant, and built for European SMEs.
Factorial is a Barcelona-based all-in-one HR software platform for SMEs, covering payroll, time tracking, recruitment, performance reviews, onboarding, and IT asset management in a single product. Built for teams without a dedicated HR department, it automates administrative work that typically consumes hours of manager time each week.
An employee self-service portal handles time-off requests, shift changes, expense submissions, and document signing without HR intervention. Payroll automation calculates gross-to-net and generates compliant payslips, while a recruitment module tracks candidates from application to signed offer. Integrations connect to Slack, Google Workspace, Microsoft 365, and major payroll providers.
Key benefits:
- Payroll automation with compliant payslip generation and expense management
- Time tracking and shift scheduling with mobile clock-in and overtime calculation
- Recruitment module for managing job postings, applications, and hiring pipelines
- Performance reviews with 360° feedback, goal setting, and development tracking
- Automated onboarding with document templates, task checklists, and e-signatures
- IT asset management for tracking devices and SaaS subscriptions per employee
- Employee self-service portal for time-off requests, payslips, and documents
- ISO 27001 and SOC 2 certified for information security and data handling
Headquartered in Barcelona, Spain, Factorial is fully GDPR-compliant with all data hosted in the EU. It holds ISO/IEC 27001 certification and SOC 2 Type I and II reports. Founded in 2016 by Jordi Romero and Bernat Farrero, it now serves 15,000+ companies across Europe.
Companies report a 60% reduction in administrative hours — ideal for European SMEs that need full HR infrastructure without enterprise complexity or cost.
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European hr & recruitment alternative based in Netherlands.
