Why Automating Leave Management is Important…

by | Jul 13, 2011

Worldwide studies have shown that the cost of leave & absence contributes to nearly 35% of an organization’s payroll. Surprisingly, despite such impact, most organizations do not even track employee absence, let alone manage it effectively.

Leave management processes hold an important place in organizational policies simply because paid time off has a significant financial impact on a company’s bottom line. Employers are therefore always looking for paperless, effective solutions that reduce or eliminate the margin of error in leave benefits calculations.

The onus of managing absence in most organizations rests with the line managers, and with HR. However, organization wide data that provides the complete picture is hardly available to senior management. This is because the data is either not tracked, or if it is being tracked, there is no automation and the manual work translates into high TATs and hence slips down the priority list of senior management team.

Effective leave management could lead to significant reduction in costs and improvement in productivity. Implementing a Leave Management System would help in:

  1. Track all absence and leave incidents
  2. Manage an employee’s leave
  3. Reduce administrative burden
  4. Enable informed decisions for drafting leave policies
  5. Reduce costs

Obviously, more organizations should have had an automated leave management system in place by now, but it was easier said than done.

Earlier, the cost of maintaining a leave management system would outweigh the benefits it would provide. With no ROI, it was reasonable for most organizations to overlook this and leave it in the hands of HR and line managers. With the advent of Cloud hosting though, the landscape has undergone a major change.

Cloud hosting has driven down costs for implementing any enterprise application by as much as 60%. And due to the reduced deployment time, the results are visible within days instead of months earlier. With the reduced cost and time of deployment, organizations are rethinking their strategy in tracking leave and absence data. However, finding the right leave management system for an organization could be a difficult as every organization has a different leave policy, and heavy customization would be required to get the right product, not an easy thing in the SaaS model.

It is a fully customizable, cloud hosted application that allows:

  • Apply, approve and track leaves
  • Employee self service
  • Manager self service
  • Manage leave quotas
  • Manage time-offs
  • Generate detailed custom reports

Deskera E Leave Manager is a complete leave management system that could significantly reduce the losses due to leave and absence through complete automation of the entire process, making your business Better, Easier, Faster.

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