Top 5 Reasons Why Companies Need an Organized Leave Management System

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Burnout is inevitable in every workplace. Whether it’s caused by a continuous stream of heavy tasks or uncooperative workmates, work exhaustion can greatly affect the physical and mental health of employees, causing them to feel stressed and unmotivated to produce quality work.

For cases like this, one obvious solution is for employees to take either a vacation or sick leave. Once their leave request is approved by their respective superiors, their HR managers will then be responsible for organizing and tracking their leave. 

However, with so many other tasks on their plate, HR managers tend to overlook the documentation process for leaves, leading to errors and work disruption in their entire organization. This is where a leave management system comes to play. Having a program that automatically organizes leaves offers more benefits to both employees and employers than what it seems.

Here are the top five reasons why companies need an organized leave management system.

  1. Less costs

It may be daunting, especially for traditional companies with manual processes, to employ a leave management system due to the initial costs that it demands. However, having an automated program provides a big return on investment to both HR managers and the entire organization. A leave management system can help companies eliminate paperwork, prevent errors in payroll processing and legal complications―which can lead to heavier costs―and even kickstart or improve their digital transformation.

Additionally, companies will no longer need to hire additional HR officers to independently handle leave management as software can finally do their work for them.

  1. Less work disruption

A proper leave management system assures employees that their leaves are documented accordingly. It also guarantees that work in the organization remains harmonious by allowing managers to better orchestrate assignments among employees who will remain in the workplace, all while providing others the break that they need and deserve.

In the case of HR managers, employing leave management software allows them to attend to other pressing responsibilities that they initially could not do. Contrary to popular belief, leave management can become demanding. By providing supervisors and HR managers a single leave management platform―one where they can seamlessly approve or reject and consolidate leave requests and post leave policies―they can better monitor and manage the other needs of employees and the entire organization.

  1. Boost employee satisfaction

If there’s one thing that employees appreciate in their workplace, it’s transparency. Employees can better trust and rely on their employer if they’re given the means to check their own records themselves. When it comes to planning their leaves, employees would greatly appreciate using a Employee Self Service (ESS) platform where they can apply for leaves, check their requests, and track and correct their leave balances. In this way, they won’t have to ask their employers about these matters again and again.

Additionally, employees largely prefer organized leaves and leave policies. A 2018 survey revealed that employees consider paid vacation leave as the second most important employee benefit after health care. By showing employees that they can easily apply for vacation or any type of leaves convenient to them and the company, employers are sure to retain their workforce. 

  1. Better compliance with local labor laws

A leave management solution can help HR managers keep everything in check, including compliance with local labor laws. If an organization fails to properly implement government-mandated leave policies due to mismanagement, it will be at risk of facing penalties, lawsuits initiated by its employees or audits.

  1. Better policy implementation

Employees will be able to better comply with internal policies if they have access to a system or dashboard where they can check these rules prior to consulting an HR officer. Having a leave management system can also help reduce the back-and-forth communication that they would otherwise have to do, either in person or through digital collaboration programs, if their HR manager still implemented manual processes.

With better awareness of leave policies, employees will have an improved understanding of how their organization works and can better adjust to their work environment.

Workstem’s leave management system, for example, allows HR managers to set their own leave types and policies into a platform. The platform also helps HR managers arrange policies for all types of employees, whether they’re stationed for the management or the frontlines and employed full-time or part-time. With all the necessary information and functionalities available at anyone’s disposal, HR managers can experience stress-free leave management, while employees get to easily check and reconfirm any policies relevant to their concerns.

In conclusion, having a leave management system allows companies to work seamlessly and continuously while giving their employees the appropriate time off from work. Consequently, having such a platform frees up time for HR managers to attend to their other employee concerns, therefore giving them the flexibility to keep the organization in tune.


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