India Payroll Leave Management

Why Attendance and Leave Management is Essential for a Small Business in India

Emma Cooney
India Payroll Director
May 11, 2022

Manual processes mean that tracking working hours is crucial as it is required not just for salaries but also to analyse every department’s productivity. Employee timesheets often need to be corrected before payroll runs, as it is not easy for the employees to remember their exact work timings.

Manual or outdated time-keeping systems should be replaced with cloud-based automated software. An attendance and leave management system can help to prepare the business for any unscheduled leave or changes as well as easy management of employees’ timesheets.

What is an Attendance and Leave Management system?

Leave and attendance management systems track employee’ working hours for businesses. Timesheets, leave and attendance are all related to each other and directly impact the employee’s payroll. While the leave management system records the employee’s’ remaining leave and type of leave, the attendance management system records the number of hours the employee has worked.

Different companies use different ways to maintain attendance in their workplace, such as biometrics, punch cards, timesheets, etc. All of these can be integrated with other systems for analysis before pay day. However, traditional employee attendance and leave management systems have several loopholes that can lead to erroneous entries.

Investing in a modern leave and attendance management system will ensure the smooth operation of payroll and HR departments.

Modern leave and attendance management systems automatically track the employees’ working hours and automate leave request workflow, making everything seamless for the employees and their employers. Everything is automated, whether applying for leave or managing remaining leave balance.

Why is a Attendance and Leave Management System essential for Small Businesses in India?

Attendance and leave management are vital for employees, a business’ most important asset. As businesses are focused on developing both the employees and the company, it is sensible to invest in a robust employee attendance monitoring system.

Here are some reasons:

1. Automation

Maintaining a manual timesheet offers around 66% accuracy. Errors in maintaining employees’ working hours may prove costly to the business if employers pay more to their employees. On the other hand, there may be times when an employee may be underpaid too. However, an automated leave and attendance management system can ensure accuracy and minimize the risk of over or underpayment for employees.

2. Effective Leave Management

Employees working in an organization are entitled to a certain amount of leave annually ormonthly. This leave is earned according to the number of hours ordays that they work in the organization and may differ for every country. Leave calculation and management is not an easy task, especially when it is done manually. A good leave management system allows the processing of employee time-off in an accurate and efficient way. The system records and displays a list of approved or pending leave and reminds the relevant departments of salary deductions according to the guidelines set by the business. A transparent work environment can boost employee and employer morale.

3. Lower Attrition Rates

High turnover of staff often indicates negative practices in the organization. Managers and department heads may not be able to understand this trend if the business works with a manual or outdated leave and attendance management system. An efficient leave and attendance management system provides the essential reports to department heads before it is too late for the organization to retain their employees. The pattern of leave taken by employees and the trends in absenteeism often reveal the nature of the scheduled leave taken by a certain department. Department heads can then work to resolve any issues at the earliest opportunity and win back the employees. The attrition rate in any organization impacts its productivity.

4. No Fraud

Unscheduled leave, buddy punching, inaccurate reporting, etc., are several issues that businesses have to face when they have a manual or outdated leave and attendance management in place. Fraud can cause grave damage to the business as it hampers its reputation and productivity. Modern attendance and leave management systems are secure from all types of data breaches. They offer an easy monitoring system to department leaders, who can immediately pick out any red flags that are revealed to them. Most leave and attendance management systems can be easily integrated into current systems or software and help the business eliminate any possible fraudulent activity.

5. Cost-Efficient and Time-Saving

The HR department often oversees leave and attendance, and so spends several hours verifying manual timesheets and leave requests. Hiring several HR professionals to perform this job is a costly affair. Leave and attendance management systems eliminate all of these issues, allowing HR to work towards several other tasks that contribute to the company’s productivity.

6. Coordinated and Seamless Workflow

Another notable benefit of an automated leave and attendance management system is the ease of managing the workflow. When the correct procedures are in place, things such as overtime demands, requests to regularize attendance, leave requests, etc., are done effectively with proper communication.

7. Workplace Mobility

A work from home culture isn’t uncommon now, especially since the pandemic set in. Companies now acknowledge the benefits of this work culture and employees are no longer obligated to work from an assigned cubicle or desk to fulfil their responsibilities. However, this is only possible when the company has a trusted leave and attendance management system in place and good software to allow the employees to fulfil their duties properly.

How and Where to Get a Good Leave and Attendance Management System in India?

Although investing in a good leave and attendance management system is beneficial, it may not be possible for small businesses to make such an expensive purchase. In addition, there are several expenses involved in its maintenance and upgrades. So how can a small business enjoy the benefits of a modern and sophisticated leave and attendance management system?

The answer to this is outsourcing! Small businesses that wish to establish a smooth work environment in their organization should outsource their leave and attendance management to a reliable third-party service provider.

Some of the benefits of outsourcing are:

  • Cloud-based online leave management system that allows easy approval of leave, marking attendance, application of leave, etc., from anywhere.
  • Easy report generation with various patterns and acquisition of actionable insight.
  • Easy integration of leave and attendance management system with HR management software, payroll software, etc.
  • Saving a generous amount of money for a business that regularly upgrades and maintains software.

TopSource Worldwide offers you the easiest HR Services to seamlessly manage your employees’ leave and attendance. With our software Portico, you can improve your team productivity, save precious human resources hours, generate department-specific reports and prevent employee discord in your office that may be caused because of an inefficient leave and attendance management system.

Here are some features that our software Portico offers for leave and attendance management:

Leave Management

  • Easy to configure leave policies as per the company or business requirement
  • Easy-to-follow leave application workflows and email alerts
  • Leave cancellation module
  • Reports are available for tracking employee leave, MIS and interface to payroll

Attendance Management

  • Automatic data retrieval of attendance from any biometric access system or electronic swipe card system
  • Fully integrated with Leave Management System
  • Employees can easily view their own attendance records and send requests to their department heads to regularise their absences if any.
  • Shift planner for the shift supervisors and auto shift assignment for easy workflow processes

Choose TopSource Worldwide for the Best Leave and Attendance Management System in India

TopSource Worldwide has always provided incomparable HR Services to all of its clients, keeping customer service as their primary goal. We have worked with more than 900 clients across Europe, Asia, Australia, and North America and provided them with our best services. Besides the leave and attendance management system, we also specialize in other services, including payroll, HRMS and reportingperformance managementclaim management systemstatutory compliance and more. We work with a team of skilled experts, and together, we believe in offering bespoke services to our clients to suit them. We are also equipped with modern infrastructure and highly advanced security systems, so your data is safe with us. To learn more about our services, you can contact us on the details mentioned below.


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Emma Cooney
India Payroll Director
Emma Cooney is the Head of Global Sales Operations at TopSource Worldwide, a leading provider of Global Expansion services. She has 15 years of experience in Sales/Operations, where she has excelled at finding and implementing solutions that reduce costs, increase revenues, and enhance customer satisfaction. She has worked in both large and small organisations, gaining a broad understanding of the Sales Operations function and its role in supporting business growth. She works closely with the client-facing teams to understand and address the clients' needs and offer them the most suitable solutions for their success.

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