Leave Management System - Challenges and Features that Can Make or Break your Business
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Leave Management System – Challenges and Features

December 5, 2022
Leave Management
Leave Management System Challenges and Features that Can Make or Break your Business

Excel Sheets, paper-based forms, and applications have now become the old-school methods of managing employee leaves.

Are you still using the manual leave management systems?

All these traditional tools are outdated and do not stand a chance to stay in line with government rules and regulations. These days, even small businesses don’t operate in one physical location. They have been able to grow their services both domestically and abroad thanks to the internet. A basic spreadsheet is not sufficient to accurately track employees’ absences because it is impossible to synchronize it with your payroll software.

Leave Management System 1

Because it is linked to employee happiness and motivation, adherence to the company’s leave policy, and availability of workers during work hours, managing leaves is a crucial HR task that is important for any organization. In addition, a good leave management system prevents legal issues, business catastrophes like employee absences, and payroll mistakes.

However, many organizations overlook its importance and fail to realize how the lack of a good system could affect the business. Although leave management can be simply defined as a system to manage leaves, it has more than just what meets the eye. This HR activity has its fair share of challenges and features. This blog will help you with both.

Keep Reading!!

Unplanned Employee Leaves Payroll Errors due to undocumented leaves Uninformed leave balances

Top Challenges in Leave Management

When a ‘no’ leads to a cold war

It goes without saying that employee relations in the organization undergo significant changes when leaves are denied. Improperly managed leave approvals and rejections leads to improper tracking of LWPs (leave without pay), uninformed leaves, and more. All these are the signs that the leave management in the organization is a complete mess.

The cost factor

Often HRs find themselves trapped and confused when their companies ask them about the number of payroll employees spent on their leave-related benefits. Some research says that this statistic stands at 14.6% which implies a significant financial impact on the companies.

The cost factor

A multi-faceted challenge

Even though managing leaves of absence is just one of many tasks an HR must handle, it takes up a sizable portion of their time. It is difficult to promote employee happiness while also ensuring that resources are available to assure business continuity in the event of an employee’s absence. But these elements determine an organization’s survival and development, so they must be handled carefully.

Sheer volume

The HRs of the organizations face a lot of pressure with no structured leave module at hand. In the absence of one, hundreds of leave-related queries find their way to HRs inbox. Employees who do not know their leave balance and the HR department are continuously bombarded with leave-related queries are the signs that you need to take action to fix your organization’s leave management system and help your HR department stay relaxed.

Therefore, an improper leave management module hinders employees’ performance and the organization as a whole. How therefore does one drive the vehicle while avoiding the mundane maze that leaves present?

A leave management system in Excel is an overly complicated task that has a significant impact on daily business operations, regardless of whether you run a small business or a big corporation. Using a cloud-based employee leave management system will enable you to greatly speed up and simplify the procedure.

Before selecting an online leave management system for your business, look below for the features that are a must in a leave management system.

Features to Go for in any leave management system

Customize the Leave Policies the Way you Want

Customize the Leave Policies

No two organizations are the same when we talk about leave or any other policy. Even within the same organization, the leave policies and the holiday calendars may be different based on the location of the office or the team you are working with.

An efficient online leave management system enables the HR or the managers to configure the leave rules including work weeks, accrual calculation, balance proration, encashment policies, etc. as per their organization, and that too while complying with all the state and central regulations.

Know about all the Unscheduled Absences

Unscheduled Absences

Unplanned absences can significantly reduce production. For whatever cause, an employee could be absent; managing the unscheduled absence can be very difficult and time-consuming. The best method to handle this is to spot the issue with these absences at an early stage, which will reduce its occurrence.

Because of this, it’s crucially important to have a leave management system that is fully connected with your attendance management system, be it a biometric device, access card, web-based attendance, or any other. Giving the manager advance notice of an employee’s absence can assist reduce costs by seeking a replacement worker.

Additionally, the integration of attendance data with the organization’s online leave management system guarantees reduced HR manager workloads and adherence to the different leave policies.

Reduce Payroll Errors

Reduce Payroll Errors

How tiresome is it to manually compute salaries for payroll and keep track of every leave day an employee takes? Imagine that your HR department had access to a payroll management system that automatically populates a calendar of employee leave requests and performs all computations. Wouldn’t that be helpful in some way?

This is exactly what a cloud-based leave management system will give you. Your payroll administration software can be fully integrated with the system to guarantee that all leave data is validated correctly and that payroll inputs are accurate and easy. Consequently, your HR will operate more effectively and there will be fewer payroll errors.

A List Of 12 Types Of Leave Offered By Company In India

Increase Employee Satisfaction with Mobile Compatibility

Mobile Compatibility

Imagine how convenient it would have been if you could apply, approve, reject, or manage all the leaves from one screen or from your mobile devices. Wouldn’t that make the process much simpler?

A mobile application that enables everyone to manage their leave data on the go is a must in today’s environment for all employees and employers alike. A mobile-based application will provide you the power to handle them all on the run, wherever you are, whether it be gathering geographically location-based attendance, work hours, reimbursements, and requests or activities like leave application, approval, rejection, or tracking.

Empower Employees with Self-service

Empower Employees with Self service

Do your staff scurry from pillar to post in search of information on their leave balance, how to apply for leaves, whether their requests have been granted or denied, or other such crucial details?

By providing your staff with access to a self-service portal, you can put an end to all of this. Having a self-service portal implies that employees can contact HR or their managers for any requests or questions relating to leaves of absence. The self-service portal serves as a central location for all employee data, making leave administration simple for both employees and managers.

Improve Decision Making with Detailed Dashboards & Reports

Dashboards Reports

With all the stored data, your online leave management system should be able to generate tailored reports in the form of tables or graphs to eliminate manual efforts. This feature is important for your HR department which spends a significant amount of time manually creating and analyzing the reports. With all the above features, a leave management system is undoubtedly a perfect solution to keep the organization well working without any hitch.

9 Benefits of Web Based Employee Leave Management System

The Solution to your Leave Management Headache – UBS

Don’t waste any more time, be active, and efficient, and reduce costs with the right leave management system for your business.

Above are the challenges a company faces while managing leaves and a solution that can help you get rid of all the challenges – an online leave management system. Leave management in HRMS is very important for the HRs of the company.

UBS is an HRMS software company that has been in the industry for many years to provide the right solution you are looking for, be it a startup or SME. Everything related to leaves, from leave accounting and grants to period closure activities, is automated and brought online by the UBS leave management module. Additionally, we have a library of common policies in the UBS HR Toolkit that you can pick from if you find yourself without a leave policy.

Do employee leaves bombard your inbox every morning


What is a leave management system?

A leave management system is an HR tool that streamlines employee time off requests. An automated leave management system, typically run by human resources, makes it simple to monitor, accept, or reject employee leave requests.

What is the employee leave management system?

A leave management system governs how leave is requested by employees, granted by supervisors, and tracked for payroll, balance, and other purposes within an organization. Digital, automated, and cloud-based features should all be present in a modern leave management system.

What is leave management in hr?

As the name implies, handling employee leave requests is the main goal of leave management. It is also known as time-off management, covering, sick/wellness leaves, parental leaves, period leaves, and other terms. The ultimate objective of this is to guarantee that employees can take advantage of their benefits without hassles interfering with how the company runs.

What are the benefits of an online leave management system?

An online leave management system removes manual intervention, improves communication, offers real-time visibility of data, and more. Read the blog to know more about an online LMS.

Alpesh Vaghasiya

Alpesh Vaghasiya

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