7 Benefits of Leave Management Software
There’s nothing quite like the feeling of taking a well-deserved break. Whether it’s a mental health day, a vacation, or just a long weekend, time off can do wonders for our productivity and well-being.
But as anyone who’s ever tried to coordinate time off with a team knows, it’s not always as simple as it sounds. You need a system. And not just any old system—one that’s foolproof, can’t-miss, and fail-safe.
Enter: leave management software.
With the right leave management system in place, you can say goodbye to the headaches that come with tracking time off.
Before we get into the nitty-gritty of how leave management software can simplify your life, let’s first answer one important question:
What is leave management software?
Leave management software is designed to help streamline the process of tracking employee paid time off (PTO). This type of software can automate and keep track of eligibility requirements, accruals, and employee time off balances. By using leave management software, employers can better manage employee vacation time, sick days, and other types of paid leave. It also provides automated notifications and reminders for managers and employees to help keep the process movin’ smoothly. And that’s just the beginning.
What are the benefits of using leave management software?
There are countless benefits of using leave management software, but here are seven of the most impactful:
Saves time fiddling with spreadsheets
Time—something we would all like a little more of. When it comes to managing employee leave, time is of the absolute essence. And yet, countless businesses still rely on manual processes and spreadsheets to track employee vacation days, sick days, and other types of leave.
While time is one of the most valuable resources to employers and employees alike, much of it seems to go down the drain. On average, an employee spends 19.8% of their day just searching for information instead of using that time to be productive. That means for every eight hours an employee works, they spend over 1.5 hours looking for details that are scattered throughout different software platforms or buried in mountains of paperwork.
On a broader scale, this wasted time quickly adds up. The estimated cost of inefficient information management is $544 billion per year in the US. That’s the equivalent of 2.6% of the country’s GDP! So, it’s not just you and your team that are feeling the pain of inefficiency—it’s businesses all over the US and abroad.
A leave management system can help to ease the burden by storing all employee information—including leave balances—in one central location. This makes it easier for employees to access the information they need, but it also saves employers time from having to track down information or answer the same questions repeatedly. You can say goodbye to the hours (and days) spent poring over manual processes.
Reduces paperwork and clutter associated with managing leave requests
We’ve all been there. A sea of papers clutters your desk, and it seems like every time you turn around, there’s another leave request form to fill out. The process is not only time-consuming, but it’s also susceptible to human error. Plus, if an employee misplaces their paper leave form, you’re left scrambling to piece together the puzzle of their leave request.
Not to mention, all that paper waste isn’t great for the environment. Businesses in the US use 12.1 trillion sheets of paper per year, with the average office worker generating about 2 pounds of paper-made products per day. As one of the leading causes of global deforestation, the paper industry is largely responsible for cutting down roughly 80,000 to 160,000 trees each day around the globe.
Leave management software reduces the amount of paper waste produced by your business, while also making the leave request process simpler and more streamlined. All leave requests are stored electronically—making it easy for you to keep track of everything in one place. And if you need to reference a leave request from the past, you can simply pull it up with a few clicks of a button. No more digging through piles of paper or wading through a sea of emails to find one approval form.
Improves communication and coordination around employee leave
Poor communication is one of the leading causes of workplace stress. In fact, 80% of employees in the US say that a lack of communication at work is their number one source of stress. Hardly surprising, though, since communication is a key factor to success in any workplace, including coordinating around employee leave.
According to McKinsey, businesses that have their communication tools down pat see a 20-25% increase in performance. This includes social tools for enhancing communication and collaboration, but also extends to project management platforms that help with workflow coordination. So, if you’re looking to increase communication and performance at your company, leave management software is a great place to start.
When implemented correctly, a leave management system can improve communication between employees and managers, as well as between different departments. Such a system ensures that everyone is on the same page when it comes to employee leave, and that no one is taken by surprise when someone is away. By providing a central place for leave-related information, everyone stays informed at all times.
Timely communication is just as essential when it comes to employee leave. You can set up automatic notifications with leave management software to ensure that the right people are always in the loop. For example, you can set up an approval workflow that notifies the employee’s manager when a leave request is submitted. There are no surprises and everyone is on the same page, reducing stress for managers and employees.
Ensures compliance with leave policies
Vacation days, sick days, maternity leave, paternity leave —the list goes on. With so many types of leave, it can be difficult to keep track of everything and ensure that your employees are taking the correct amount of time off. Any business that deals with employee leave needs to be aware of the laws and regulations that apply.
Depending on the size of your business and where you operate, there may be federal, state, or local leave laws that you need to comply with. Leave management software can help by providing the tools and information to stay compliant. You can set up leave policies that are specific to your business.
For example, you can specify how many vacation days an employee is allowed to take per year. You can also set up accrual rules so that employees accrue more leave as they stay with your company longer. This way, you can ensure that your employees are taking the correct amount of time off and that your leave policy is being followed.
Not to mention—payroll will also thank you! After all, employees need to be paid for their time off, and if there are any mistakes, it can be costly for your business. In the US alone, 82 million workers have experienced some sort of issue with their paycheck, whether that’s getting paid late or not getting paid the correct amount. Leave management software can help by keeping track of employee leave and ensuring that everyone is getting paid for the right amount for the time they’ve taken off.
Makes it easier to plan for staffing needs in advance
If you’ve ever been caught off guard by an employee taking unexpected leave, you know how difficult it can be to find a replacement at the last minute. This can be a big problem if the employee is critical to your business, such as a salesperson or customer service representative.
Scheduling issues like this can be avoided entirely with leave management software. By tracking employee vacation days, sick days, and other types of leave, you can get a better sense of when people will be out of the office. This information can be used to plan projects, schedule shifts, and make other staffing decisions. Your team will never be caught short-handed.
For example, if you know that two of your employees are taking vacation at the same time, you can make sure that there are enough people on staff to cover their workload. Or, if you know that someone is going to be out for an extended period of time, you can start training a replacement in advance.
Additionally, leave management software can improve communication around employee leave by providing transparency into who is taking time off and when. Nearly 4 in 10 workers in the US feel guilty about taking time off, which can lead to frustration and resentment. A transparent culture around leave can also help to encourage employees to take the time they need, without feeling anxious.
Eliminates the likelihood of errors in reporting
Tracking employee leave manually is an error-prone process. With so many different types of leave to keep track of—vacation, sick, personal, etc.—it’s easy to make a mistake. Spreadsheets are particularly prone to errors since they require manual updates.
Just how common are mistakes on spreadsheets, really? Well, research shows that nearly 90% of spreadsheets contain errors. These errors can have big consequences, such as overpaying or underpaying employees or incorrectly calculating vacation accrual.
Leave management software can help to eliminate these errors by automating the process of tracking employee leave. Once leave is entered into the system, it can’t be lost or forgotten. And, because the calculations are done automatically, there’s no risk of human error.
Data is report-ready with a leave management system, so you can avoid the hassle (and potential errors) of manually preparing leave reports. All employee information is stored in one central location, making it easy to find what you’re looking for, and ensuring that no critical data is lost. Because the data is stored electronically, it can be quickly and easily exported into a variety of formats, including Excel, for further analysis.
Promotes self-management for employees
When employees have access to their own leave information, they can take a more active role in managing their time off. This is known as self-management.
Self-management is relevant to almost any workplace, regardless of the type of organization. It involves an employee’s ability to manage their own workflow and productivity without a manager stepping in. Giving employees tools to practice these skills can reduce the workload for managers and HR staff, as well as provide a sense of ownership and responsibility among employees. Self-management also promotes a healthier work-life balance for employees and can help prevent burnout.
It’s important for employees to feel like they have some control over their time off, and leave management software can help to give employees that sense of control. Over time, this can improve communication and transparency around employee leave.
When employees have visibility into their own leave balances, they can make informed decisions about when to take time off. This way, they can avoid overworking themselves and taking too much time off at once. And when employees are empowered to manage their own leave, they’re more likely to use it wisely.
A leave management system can be a valuable tool for any business, big or small. When implemented correctly, it can save time, improve communication, ensure compliance with leave policies, reduce workload for managers, promote a sense of ownership and responsibility among employees, and more.
With the many benefits that leave management software offers, it’s no wonder that more and more businesses are making the switch. If you’re still using paper forms or a spreadsheet to track employee leave, now is the time to consider a better solution.
That said, when it comes to tracking employee leave, there’s no one-size-fits-all solution. The best leave management software for your business will depend on your specific needs and requirements. But with so many leave management software options on the market, finding the right one for your business can be a challenge.
If you’re looking for the simplest way to streamline your leave management process, consider trying out our leave management system. You might be surprised at how much it can help!