The Importance of Leave Management for a Small-Scale Organization

Managing employees’ days off has become an integral part of everyday HR operations. The majority of large organizations have acquired dedicated leave management solutions for their HR teams. These software and applications let them manage and track sick, annual, casual, and other types of yearly leaves of dozens and hundreds of staff without a glitch.

In contrast, many medium and small enterprises don’t consider leave management a standalone task. They don’t have any standing operating procedure to approve and reject leave requests. Most employee leaves in such organizations are processed on arbitrary grounds. Therefore, they don’t feel a need to bring in any particular resource/solution to deal with it.

Not considering leave management an important HR task is not a wise thing. No matter if you’re a local business or a multinational conglomerate, your enterprise needs dedicated and proactive leave management.

In this post, we will discuss the importance of leave management in terms of its organizational impact. We will also discuss how a leave management software or system can help every business irrespective of its size.

Importance of Leave Management

Let’s have a rundown of the most significant benefits of having dedicated leave management in place.

Improved Employee Satisfaction

A leave management system based on a well-thought-out employee leave policy helps in improving employee satisfaction. As mentioned earlier, the leave approval/rejection process in small organizations remains very arbitrary, with lots of room for personal bias. Unwarranted favoritism by the HR team or managers in approving leaves can leave all those employees displeased who think they are not in the good books of decision-makers.

A leave management system with well-defined rules and conditions and an automatic approval system is the answer to any supposed prejudice. It can enable organizations to uphold complete neutrality and award leaves to everyone on merit. When employees know that their organizations award every leave by the book, they don’t turn bitter when facing a leave rejection themselves.

Trim Down Absenteeism

Absenteeism is one of the primary reasons many small and medium-scale enterprises fail to achieve their productivity targets. It is fairly simple to understand that when there is no system in place to track and manage leaves, more employees will take days off without any solid reason. To achieve corporate excellence and stand out among competitors, you have to reduce the absenteeism rate at your workplace. Robust leave management protocols can play an important role in reducing it down.

Better Workload Management

Leave management lets you know who is and who will be on leave in the next couple of weeks. When you know about the available human resource for the future beforehand, you are in better control of workload management. You will know how to manage the roaster so that employees can complete their assigned tasks/projects within deadlines and without compromising on their leaves. Having a bird’s eye view of the employee leave landscape can also help you make informed decisions about any possible ad-hoc arrangement.

Better Compliance Fulfillment

Offering leave entitlement to employees is not just good corporate practice. Organizations are also obligated by federal and provincial laws to provide sufficient annual leaves to their employees. From Federal Canada Labor Code to local Employment Standards Acts, enterprises need to ensure that their employee leave provision is compliant with relevant laws.

Organizations often find themselves in compliance trouble because an employee has filed a lawsuit against them due to their poor handling of leaves. A dedicated leave management protocol will help organizations avoid those mess-ups and stay compliant with related laws and legislations.

Benefits of Deploying a Leave Management Software/System

A software or application makes the foundation of good leave management. You should invest in good leave management software for these reasons.

A Single Platform for All

By deploying leave management software, you can consolidate all your leave-related process flows on a single platform. An organization can use a single platform to track, monitor, and approve leaves. Also, a good leave management system provides multiple interfaces for different stakeholders. For instance, managers can use it to see who is absent and whose leaves are due. HR people can track how much the workforce is absent on any given day and other leave and absenteeism trends. Then employees can use the same platform to apply for off and track their remaining leaves.

Customize Leave Categories

Every organization devises its leave entitlements differently. A good leave management system allows you to configure its process/functions in line with your customized leave categories. You can set your check on certain leaves and automate the approval process accordingly.

Cut Down Unnecessary Back and Forth

Applying for leave and getting approval in a traditional setting might involve many back and forth between employees, HR, and supervisors. All this unwanted toil takes a toll on productivity and causes frustration. You can get around it by using a leave management system. Managers, HR representatives, and employees don’t have to engage in avoidable time-wasting correspondences when they can effectively communicate on the leave management system.

Easy Monitoring and Tracking

Managers don’t have to ask the HR desk all the time about the leave statuses of employees. They can easily track them on the software and hence plan things accordingly.

SimplyHRMS: An HRMS with Good Leave Management System

If you think that buying a leave management system is not suitable for your financially-stressed SME, consider SimplyHRMS by Microsys. It is a robust web-enabled HRM that also boasts a great leave management system. It helps HR desks to manage every employee’s leaves very efficiently.

Employees can also see keep tabs on their remaining leaves and apply them from the platform. Similarly, HR representatives and managers can approve those leave requests on the platform. In short, no emails and in-person correspondence is needed. The other great thing about this leave management system is you don’t need new equipment and other resources to use it. Your HR people can make the most of it on their existing workstations.

Explore Microsys’ website to find out more about this cost-effective and efficient HRM that’s also a great leave management system.