Automated Leave Management System - Why is it a must have?
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Automated Leave Management System – Why is it a Must Have?

September 30, 2022
Automated Leave Management System

You have the best business plan backed by a full-proof marketing strategy and a team of people performing exceptionally. However, your business is still struggling with certain costs which in turn is negatively affecting your profits. Have you ever wondered what could be the reason?

Well, check your attendance and leave management system. A manual HR leave management could be the reason for not only the increased cost in salaries but also results in poor employee productivity.

So what is leave management? Why is leave management important? Why do you need a leave management system for your company? We’ve got the answers. 

leave management system

What is Leave Management?

Leave management means employees apply for leave and the managers grant or deny the leaves according to the company’s leave policy. Leave management is one of the key functions of the HR department and any discrepancy can further lead to errors in payroll processing.

In simple terms, leave management is a process used to manage leave requests from employees and track absenteeism. Gone are the days, when the HR department had no other option than to manage employee leaves using spreadsheets or any other manual process.

Today, companies are using new age leave management software to help their HRs overcome the leave management challenges.

Ultimate Guide to Leave Management System

Why is Leave Management Important?

Organizations might suffer a great loss and fluctuate in productivity due to employees taking unplanned or just too many leaves. Although a sudden issue may come up with anyone at any time, organizations need to keep track of those leaves in order to maintain proper working with constant efficiency. Leave management is important because:

  • Inconsistent leave policies often cause a huge cost to the company.
  • Unplanned leaves may lead to missing deadlines and targets, thereby money.
  • Keeping employees deprived of their legal rights to paid leave can also create a fuss later on.
  • Employees need to plan their long leaves well in advance and having a proper leave management system in place can prove great work ethics and an easy work process in the organization.

Leave Management Important

12 Reasons to Opt for a Leave Management System

  • Increased Employee Commitment and Satisfaction

The process of managing employees’ leaves due to illness or any other reason is called leave management. An efficient leave management system improves employee satisfaction, offers transparency, and avoids unexpected events to happen. It also helps employers to reduce unexpected, excessive, or unexplained absenteeism.

  • Reduce costs

Leaves and absences can be crucial elements affecting the company’s payroll costs. Due to this reason, an efficient leave management system is extremely important. In SMEs, paid leaves have a significant financial impact on the company’s financial results.

A leave management system would be more expensive to set up and maintain than its cost. Given that these solutions are hosted on the cloud, costs are still minimal and the return on investment will be noticeable in a few days as opposed to a few months.

The conclusion is obvious: Implementing a successful leave management system will result in a large decrease in administrative expenses.

  • Increases Productivity

Work schedules that are meticulously organized eliminate last-minute confusion and stop work from being done twice. However, such planning needs up-to-date information on personnel availability. However, it can be more difficult to manage the workers at busy times. All of these problems can be solved with online leave management.

Managers are in a better position to organize and allocate work schedules and to closely monitor them from the same platform because all details are conveniently accessible on it. By doing this, it is ensured that the personnel are clocking in following their job descriptions and that the schedules do not overlap. All these elements contribute to increased employee productivity, which raises overall organizational performance.

  • Ensure Consistently Application of Policies Throughout your organization

Ensure that your employees are using only the authorized number of paid time-offs each year. No matter if your employee wants to apply for a half-day leave or additional 3 days of leave for the overtime he/she has worked, you should have proper policies for every leave. Setting the leave policy will help you deal with different leave situations.

Additionally, you can apply maximum balance or correct the leave authorization workflow for each employee.

9 Benefits of Web Based Employee Leave Management System

  • Eliminates errors

Is your management looking for the best solution to reduce errors in HR and annual leave? One of the most important benefits of using an automated LMS is that it eliminates the chances of human errors. Attendance discrepancies may have a negative impact on the payroll and employee morale. An online leave management system is at the rescue in such times.

Eliminates errors

  • Transformation of HR practices

Gone are the days when employers used to manage leaves using old paper-based practices. If you are still using excel sheets or paper-based tables to calculate the number of time-offs for each employee, it’s time for you to update.

Excel sheets can be tampered with and may not be optimized with a calendar. These sheet-based methods do not notify employers of any changes made by the employee. All your records can be tracked in a cloud-based leave management system.

  • Legal compliance

Online HR leave tracking can help you to ensure compliance with labor laws. Payroll processing can be more efficient because of the all-time available information.

  • Informed decisions

Your leave management system gathers information on employee absences and may produce customized, analytical reports, doing away with all manual work and saving HR a significant amount of time.

  • PTO monitoring

A leave management system is designed to enhance the administration of absences, paid time off, and sick leave. All of this complies with the stringent policies that apply to the entire business.

  • Better planning

When employees are aware of the leave policies, upcoming holidays, and colleagues’ availability; they can book their holidays accordingly. A proper leave and attendance management system can help your employees plan holidays with confidence and managers manage the work according to the availability of employees.

  • Optimized operation and communication

Once the employee submits the request, the records update immediately. The manager then gets the notification of the leave request and can approve or reject the leave according to the policies. As soon as the manager takes action on the leave request, the employee gets notified. It’s absolutely simple and effective.

  • Powerful automation

Automation is one of the most important reasons for organizations to move to digital solutions. Here, by automation we mean software with an employee self-service portal, centralized employee files and data, HR reports, integration, Holiday calendar, mobile functionality, and more. An HR leave management system can provide you with all.

Leave Management System – Factors to Look at While Choosing One


An appropriate leave management system should take away all your worries rather than create more complications. Choose a system that enables you to centralize all your employee’s leave-related data from leave requests, to leave starting date, leave end date, number of leaves taken by every employee, holidays, and more.

The conclusion is clear: implementing a robust and effective leave management system will help you reduce a lot of admin costs meanwhile enhancing productivity.


Why leave management system is required?

A leave management system helps in tracking, managing, and recording employees’ time-off requests. Its main objective is to keep an accurate record of the employees’ leaves and also handle leave requests while ensuring that their absence doesn’t affect the business. Read the blog to know more.

What is automated leave management system?

An automated leave management system is software that streamlines employees’ time-off requests. Typically managed by the HR department, an automated system makes it easy to approve, deny, or track employees’ leaves.

What are the benefits of online leave management system?

An online HR leave management system eliminates paperwork, removes manual interventions, improves communication, and more. Read the blog to know more about the benefits of an LMS.

How can an effective leave management system increase employee productivity?

An efficient leave management system improves employee satisfaction and engagement, focuses on better employee wellbeing, helps in proper leave planning, and more.

Alpesh Vaghasiya

Alpesh Vaghasiya

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