Why do we need a leave management system?

As an HR professional, you understand that leave management is slightly more complicated when compared to other HR processes. The process involves handling different types of leave, including sick leave, casual leave, earned leave, compensatory time off, maternity leave, and paternity leave.

Sometimes, your employees may require leave for unique circumstances that are outside of their usual entitlement. Some of this leave may be paid, and some may be unpaid. All leave data must be well documented for audits, as it proves the organization is following applicable labor laws. As a result, tracking leave can be a complicated and tiring process for both HR teams and employees.

That's why every organization should adopt a leave management system to accurately track leave, holidays, compensatory time off, accruals, and payouts from a single, centralized system. Here's why your HR team needs a leave management system:

• Tracks employee leave from a single system

With a leave management system, your employees can apply for casual, sick, and earned leave right from the system in just a few steps. All they need to do is select the leave type they're applying for and include the reason for their request. The request is then directed to the respective managers and HR team members for approval. Once approved, the leave time is documented in the system so that everyone in the organization can view who's available on a particular day and who is not. After employees apply for leave, the system will automatically update leave balances based on the amount of leave they are entitled to take.

• Supports custom leave policies

One of the biggest benefits of a leave management system is that it is extremely flexible and works in line with your organization's leave policies. For instance, you can support any number of leave types according to employee needs. You can decide if you want to allow your employees to carry their leave balances forward to the next year or cash in their leave balances. Similarly, most leave management systems come with several customization features. In some systems, you can even customize leave policies for a particular employee or a group of employees belonging to a particular designation or department. Additionally, if your organization has a global presence, you can customize leave policies for each location.

• Provides accurate data for payroll

Since the leave management system documents every leave entry, it's also able to process the data and generate intuitive reports. These reports provide the complete leave details of your workforce during a particular period. You can access the loss of pay that applies to your employees during a specific time frame and the number of leave days available for payout. Similarly, you can find dedicated leave reports for payroll calculation that list the total working days of each employee, the number of weekends, the number of holidays, their payable days, and any loss of pay.

• Empowers employees

Most leave management systems provide employees with access to a self-service portal, where they can complete a host of leave-related tasks. They can apply for leave and get it approved almost instantly with a click of a button, no matter where they work. They can view a list of their upcoming holidays and check their balance under each leave type without having to contact the HR team every time. Managers can apply for leave on behalf of their team members and stay on top of team member availability when assigning tasks.

• Ensures compliance

Since your organization's leave policies are configured in the system, every employee must request leave in a way that aligns with those policies. The system gives them a clear idea about how much leave they have available, when they have to apply for it, which of those leave types are paid, and which of those are unpaid. Additionally, your organization can be audit ready with leave management system reports that highlight compliance with regional and national labor laws. You'll have a complete record of all the leave that your employees have taken.

Understanding the benefits of a leave management system

With a leave management system, your organization can centralize leave tracking, simplify leave approvals, process payroll accurately, and maintain a complete record of employee leave data. Employees prefer flexible work practices, and a comprehensive leave management system empowers them to apply for leave seamlessly.

Zoho People, our human resource management software, has a comprehensive leave management system that enables your organization to manage leave from anywhere, at any time. Learn more about Zoho People's leave management system.