Employees are the heart of any business, and managing their leaves efficiently can determine your company’s success. Leaves happen to be one of the vital areas in HR. It is also referred to as time-off management and may be defined as a set of procedures that oversee the application and approval of employee leaves in a business. The major tasks included in the employee leave management system are directing the application through various decision-makers, reporting to the payroll, and communicating with the employee and organizational time-off and attendance records.

Manual record keeping has now become obsolete. Organizations, big and small, are transitioning to automated employee leave management systems to stay updated and survive in the highly-competitive modern business world. Receiving feature-rich services for nominal charges allows them to prevent erroneous entries and facilitate various complex HR procedures associated with employee leave management.

What is an Employee Leave Management System?

An Employee Leave Management system is an exhaustive system that allows HR to record and track the leaves taken by their employees. From medical leaves to casual leaves to unplanned leaves, everything is systematically recorded and monitored in the leave management system, allowing systematic and efficient functioning of the company and its employees.

What are the Benefits of Using an Employee Leave Management System?

1. Improves Workflow Efficiency

Manual entries or maintaining excel worksheets for daily attendance and leaves of employees can be a nightmare. It is both tedious and could cause several errors. This also exposes the business to compliance risks. Even if you are working on obsolete software, they don’t offer as many features thereby needing you to to maintain several files and ending up being disorganized. You need an all-inclusive platform that works for your business, not against it. If you have a good leave and attendance management system, then you will never have to refer to external files or import them for reference. It also increases transparency with employees to create a more positive environment at the workplace.

2. Data Security

Any business holds extensive details of employees who are working or have worked there. Hence, HR databases are prime targets for online hackers. Crucial data such as bank details, personal information, check stubs, etc., are sensitive data that are available in the system if you are using spreadsheets to maintain them. An employee leave management system has advanced security features such as data encryption multi-factor authentication to keep the employee information safe.

3. Boosts Employee Productivity and Motivation

A fair rewarding system creates a positive work environment, motivating the employees to perform well. Motivation drives the employees to perform at their maximum potential, allowing to amplify the business’s productivity and the skills of the employees. Clear communication in terms of leaves, along with other company policies or rules and regulations, allow the employee to work efficiently. It makes things smoother for them and the employer.
Planned work schedules are bound to prevent chaos or duplication of work. When managing the workforce gets out of hand, especially during peak seasons (may vary from business to business), an employee leave management system ensures that everything is on track. When managers have access to an online leave management tool, they can easily plan and assign the work to respective employees while keeping in mind those who are on leave. They can easily evade errors while scheduling the work, thereby ensuring that the work cycle is clocking in according to their work assignments. All these factors translate to enhanced productivity of your workforce, thereby increasing the overall organizational performance.

4. HR Data Analytics and Metrics

Businesses are known to make crucial decisions based on the data of the HR department. There are several challenges that HR data can help in solving, including headcount, turnover, etc. HR and leave Management System offers Data that allows the business and its departments to be informed and ultimately take precise and informed decisions based on them when it comes to employee management. Data analytics provides answers to several business-related important questions.

5. Minimizes Compliance Risks

A large percentage of companies face compliance issues and earn penalties because of erroneous calculations. Leaves are an important part of the payroll and must be calculated correctly. Manual calculations only invite trouble. Erroneous calculations can be minimized and even avoided completely with a good leave and attendance management system. Your tax and compliance will never go wrong. Moreover, you will have access to quick reports of any type as required by the auditor, whenever required by them.

6. Promotes Employee Satisfaction

When employees have access to the employee leave management system, they are clearly able to see their leave balance, the approval status, etc. They can easily plan their leaves and submit them for approval to their seniors. The managers, on the other hand, can easily monitor everything online and take decisions of granting leaves in accordance with the availability of the employees. Everything is transparent, and it also eliminates any delay which is caused when things are done manually using leave application forms. HR can also use the leave management system to track employees who haven’t taken leaves for a long time. They can mentor and guide them to take their assigned leaves and ensure work-life balance in their lives. A hassle-free work environment always boosts employee satisfaction.

Problems Faced in Employee Leave Management

Before we can learn how an employee leave management system can help in managing the leaves efficiently, here are some of the top challenges that you usually come across:

1. Effective Communication of Leave Policy

Without proper communication of the company’s leave policy, the employees may be left in the dark. With no proper understanding of their entitlement, it gets difficult for them to know when and how to apply for their leaves. All policies in a company are dynamic, and even the leave management policy of a business may change. When employees are unaware of these changes, it leaves a sense of dissatisfaction in them. A continuous pattern of delay in receiving information creates chaos and frustration. Ineffective communication also causes a delay in their leave approvals, which just aggravates their anger.

2. Tackling Attendance

The number of employees present in the workplace has a major impact on productivity. Without proper insight into the number of workers required to accomplish the work or having no knowledge about the number of people who are already on leave, managers cannot process leave approvals accurately or on time. Managers are usually unable to:

  • Identify the leave request patterns of employees trying to exploit the leave policy of the company.
  • Gain insights on the availability of the team members for a certain time period.
  • Make proper decisions on approval/ rejection of leaves because of inaccurate or no data available at hand.

3. Increased Payroll Errors

Leaves directly impact the payroll, especially when Leave Without Pay (LWP) is/are not tracked properly. Data, when recorded on emails, excel sheets, leaves taken over phone calls, etc., can easily be missed out, causing expense-related transactions, attendance, and financial leakages in leave.

These are the main problems faced by companies in the leave management process. However, a good leave and attendance management system can help in setting things right for your business.

What Must-have Features should be Considered When Choosing an Employee Leave Management System?

TopSource Worldwide offers a myriad of features that will make the leave management system of your company easy and manageable. Some features offered by Portico include:

  • The leave management system is feature-rich and customizable
  • Fully configurable leave policies
  • The workflow of the leave application and email alerts is easy and simple
  • Leaves cancellation module is available for employees
  • Reports are available for leave tracking, MIS, and interface to Payroll
  • Attendance Management
  • Auto-fetch attendance data from any electronic swipe card or biometric access system for automatic attendance
  • Fully integrated with Leave Management System
  • Employees have access to view their own attendance and regularize absences if any
  • Shift planner for Shift Supervisors and auto shift assignment

Thus, it is vital that you choose an efficient employee leave management system to reap the above-mentioned benefits for your business. A trusted service provider such as TopSource Worldwide ensures that you have a dynamic and feature-rich leave management system for your business.

Where to Get the Best Employee Leave Management System Provider?

As one of the leading HR and Leave Management System providers in Asia, Australia, Europe, and North America, TopSource Worldwide has provided outstanding services in various categories along with Employee Leave Management System. We look forward to providing 100% satisfaction to our clients. We have worked with different industries and provided them services in sectors of payroll management, statutory compliance, certifications, HRMS, Leave and Attendance Management System, Data Security, and more. We are equipped with modern infrastructure and highly-advanced security systems, so your data is safe with us. You can contact us on our details mentioned below to learn more about our services.

Share this article, choose your platform!

Published On: 27/02/22Last Updated: 14/09/22

About the Author: Sachin Disa

Sachin heads the India Payroll business unit and is responsible for global sales into India, India domestic sales and delivery, and local finance support in India. Sachin has over 17 years of experience with the company, his previous roles include head of UK payroll operations, head of accounting support services, head of sales in India and VP of finance.

Subscribe to our newsletter don’t miss out

Subscribe to receive our latest posts and events straight to your inbox.

We care about your privacy. By submitting this form, you’ll receive the requested information as well as business insights from TopSource Worldwide. You can unsubscribe at any time. For details, view our Privacy Policy.

Our top blog categories

Global employment cost calculator

Estimate the cost of your new hire with our new calculator.

Calculate costs

Recent posts

What makes effective HR management?

By |21/09/22|

Your workforce is the most essential component of your business. Therefore, you must have effective HR management to achieve an efficient, positive, and productive ...

Related posts

  • Published On: 18/08/2214 min readBy

    Payroll management is a difficult task for organisations to manage be it small or big. Even the business leaders ...

    Read the full blog
  • Published On: 05/07/225 min readBy

    In the past, companies took pride in handling all aspects of business in-house – marketing, HR, sales, finance and ...

    Read the full blog
  • Published On: 05/07/225 min readBy

    Outsourcing certain functions of the business to keep up pace with the world has become indispensable. Payroll is a ...

    Read the full blog
  • Published On: 18/08/2214 min readBy

    Payroll management is a difficult task for organisations to manage be it small or big. Even the business leaders ...

    Read the full blog
  • Published On: 05/07/225 min readBy

    In the past, companies took pride in handling all aspects of business in-house – marketing, HR, sales, finance and ...

    Read the full blog
  • Published On: 05/07/225 min readBy

    Outsourcing certain functions of the business to keep up pace with the world has become indispensable. Payroll is a ...

    Read the full blog
  • Published On: 05/07/225 min readBy

    Employee personal data and company confidential information are now preferably stored on cloud storage facilities, this has made the ...

    Read the full blog

Start your global expansion journey today.

Expand faster and stay compliant in over 150 countries without a legal entity

  • Expand globally

  • Deploy quickly (in days not weeks)

  • A single global portal for all your hiring needs

  • No legal entity required

  • Experienced expert team

Contact us today & talk to an international payroll or EOR consultant

We care about your privacy. By submitting this form, you’ll receive the requested information as well as business insights from TopSource Worldwide. You can unsubscribe at any time. For details, view our Privacy Policy.