Leave management can be a complex and challenging task for HR professionals, as it involves handling various types of leave, such as sick leave, casual leave, earned leave, compensatory time off, maternity leave, and paternity leave.
Additionally, employees may require leave for unique situations beyond their standard entitlement, some of which may be paid or unpaid. Accurate documentation of all leave data is essential for compliance with labour laws and auditing. This process can be demanding for both HR teams and employees.
Therefore, organizations must implement a leave management system to efficiently monitor leave, holidays, accruals, and payouts through a centralized platform. Here are the reasons why your HR team should adopt a leave management system:
Centralized Leave Tracking
A leave management system enables employees to request various types of leave, such as casual, sick and earned leave. They can select the type of leave and provide a reason for their request.
Once submitted, the request goes through the approval process with respective managers and HR team members. Approved leave is then recorded in the system, allowing everyone in the organization to know who is available on a particular day. Moreover, the system automatically updates leave balances based on entitlements.
Customizable Leave Policies
Leave management systems offer great flexibility by aligning with your organization’s leave policies. You can support multiple leave types to cater to employee needs and decide whether leave balances can be carried forward or cashed in.
Customization options often allow tailoring leave policies for specific employees or groups, such as those in particular roles or departments. Leave policies can be customised for organizations with a global presence for each location.
Accurate Payroll Data
Since the leave management software records every leave entry, it can generate detailed reports. These reports provide comprehensive leave information for your workforce during specific periods, including data on loss of pay, available leave days for payout, and dedicated reports for payroll calculations. This includes details on total working days, weekends, holidays, payable days, and any instances of loss of pay.
Most leave management systems provide employees with access to a self-service portal. Employees can easily apply for leave through this portal and receive quick approvals, regardless of location.
They can view upcoming holidays and check their leave balances without needing HR assistance. Managers can also request leave on behalf of their team members and keep track of their team’s availability when assigning tasks.
Aligning with leave policies
The leave management system ensures that employees adhere to your organization’s leave policies. It provides clarity on available leave, application procedures, paid and unpaid leave types, and compliance with regional and national labour laws. The system’s reports can help your organization maintain a comprehensive record of all employee leave for auditing purposes.
Features of a Leave Management System (LMS)
LMS streamlines and automates the leave request process, simplifying it for employees and management. It should offer comprehensive capabilities to handle every stage of the leave handling process, including application submission, approval/rejection, leave balance management and analytical functions.
A perfect leave module should include the following features:
Workers can easily access their leave balances and check the availability of their colleagues when requesting leave.
Employers and HR Departments should have access to essential information such as employee leave balances, holiday schedules, departmental schedules, and workforce coverage to make informed decisions on leave requests.
Configurability for Leave Types, Policies, and Holiday Lists:
Organizations often have unique leave policies and requirements. A rigid, one-size-fits-all system may not meet your specific needs.
Look for a system that allows customization, enabling your staff to tailor fields and settings to align with your organization’s policies and procedures.
Opt for a cloud-based online leave management system that provides flexibility and accessibility across various channels.
Cloud-based systems offer on-the-go access, eliminating the need for software installations and updates. Employees can request, approve, or reject leave requests from anywhere.
Automated Leave Balance Updates:
The system should automatically calculate and update employee leave balances, eliminating HR staff’s need for manual calculations.
It should maintain a comprehensive leave history for all employees and make it accessible to both employees and their managers.
Customizable Approval Workflows:
The system should allow you to create tailored approval workflows, including department-specific hierarchies, to ensure a streamlined leave request process.
When an employee selects their department, the system should auto-populate the predefined workflow.
By utilizing a leave management system, you can streamline your leave management processes, enhance employee satisfaction, and boost overall operational efficiency. DigiSME is one name that many people trust as the HRMS software incorporates a leave management system, time attendance software, payroll software, and accounting software. It will be easier for employers and HR departments to manage everything in one place.