Why is an efficient Leave Management System crucial to a growing organisation?

Why is an efficient Leave Management System crucial to a growing organisation?

There was a time when employees were required to work for 6 days a week and 12 hours a day. However, it was Henry Ford, founder of Ford Motors, who for the first time introduced a 5-day week and granted Saturday & Sunday as a holiday for his employees.

Today, many countries, especially in Europe, are seriously thinking about taking a step further and creating a 4-day working week. Just like Ford, many organisations today also strive hard to create a healthier work-life balance for their employees.

Leaves are the right of every employee. While most organisations grant a weekly 1 or 2 days off to their employees, there are several other occasions too when employees can take a leave from work for a variety of reasons. These leaves are over and above the public holidays declared by the government or the weekly holidays granted by their employers.

While some employers are quite liberal while granting leaves, some are equally stingy. But in either of the cases, it is the job of the concerned HR department to keep a track of the leaves of every individual employee and then arrive at their monthly/annual compensation. No matter what the scale of an organisation, an efficient leave management system is the need of the hour. While every organisation has a well-documented and well-defined employee leave management policy, maintaining the records of every employee’s leaves proves to be a gargantuan task for most HR departments. But why is employee leave management considered such a difficult task? Here are some answers:

  • It needs accurate maintenance of leave records

Every employee’s record regarding the type of leave, duration of leave, and financial aspects of the leave has to be maintained in a proper order to avoid errors in the payslip.

  • Leaves must be in accordance with statutory requirements

Besides the company-specific leave policy, the organisation also has to comply with the leave rules established by the Central and State government. Unfortunately, every state has its leave policy which makes it very difficult for an organisation if it has a multi-state set-up.

  • Leave Management system must work in sync with Payroll Processes.  

Every employee’s payslip explains the leave status of the concerned employee on a monthly basis. Hence, the HR department has to make sure that the leave status of every employee is updated accurately so that the payslip can reflect the correct status every month.

This effectively means that every organisation must have a robust and effective leave management system in place to capture all the relevant details of every individual employee that too in a time-bound manner.

While many organisations have upgraded their employee leave management processes to the latest in Leave Management Systems, unfortunately, many organisations still follow a paper-based or an Excel-based system. This makes the job of the HR team even more difficult as such archaic forms of Leave Management System act as disasters waiting to happen! One error and the entire system breaks down leading to a lot of dissent among the employees, multiple statutory non-compliances and loss of precious man-hours to get it back on track.

Even today, many organisations think that outsourcing employee Leave Management System is a costly affair. However, that is not the case. Infact, an outsourced Leave Management System can bring efficiency to your business and help you reduce overheads. Here are some reasons why?

  • Technology is the key

Most Payroll Process Outsourcing companies bring a technologically robust infrastructure that includes an efficient Leave Management System module. Also, this system is capable of working round-the-clock and that too at multiple locations.

  • Customisation becomes easy

Every organisation has its own Leave Policy. Outsourced Leave Management Systems are designed such that they could be customised to suit the requirements of every individual organisation.

  • Processes become automated

Outsourced Leave Management System calculates availed leaves, balance leaves, leave encashment etc. fully automated. Employees and employers both can know the status at any given instance. This creates transparency.

  • Leave approval becomes easier

Leave Management System makes applying and approving/disapproving of leaves very easy. Also, the data is stored securely for all future uses. This leads to an improved relationship between bosses and their subordinates.

  • Access to the Leave Management system becomes easy

Every employee in the organisation gets a personal login to access their data. They can view their current status in confidence without their colleagues or any other person knowing their confidential data.  

  • Analysis and tracking are easy

Availability of data makes the job of all concerned very easy. Analysing the leave status makes tracking an employee’s performance easy thus aiding in their appraisal. Also, when an employee retires or resigns, leave encashment can be computed in a very efficient and transparent manner.

However, organisations must make sure that they use reliable Payroll Process Outsourcing service providers for this activity. An experienced Leave Management Services provider helps in storing employee-specific data in a safe and orderly manner.

This not only helps the HR teams to work efficiently but also helps improve employee morale and in creating a positive work culture. Besides, an efficient Leave Management System helps organisations to comply with all statutory compliances pertaining to leaves and leave encashment across multiple locations.  

Leading Payroll Process outsourcing companies like Paysquare have a track record of creating robust yet customisable Leave Management Systems for many organisations in the country.

Paysquare does not just ensure that every employee and their employers can view the current leave status across organisations on a real-time basis but also plan their activities accordingly. Also, Leave Management System from Paysquare can be customised according to the local rules and regulations thus making sure that not just the employees remain happy, but the organisation also complies with all the rules and regulations.

So if you are an organisation which is planning to enhance its business efficiencies, introduce transparency in its internal processes and create a robust Employee Leave Management system, then Paysquare can be a great partner to power your Leave Management Systems.