Worldwide studies have proven that the cost related to leave and absence in any organization contributes to nearly 35.5% of the payroll. Despite this impact, organizations let go leave or absence without tracking and monitoring the employees. In turn this creates a huge impact on the organizational productivity and therefore the ROI or bottom-line.

Leave management has a significant role to play especially when it comes to the paid time-off, which has a significant financial impact on the bottom-line. These reasons motivate employers tend to look out for paperless and effective solutions that can help manage leaves in an organization eliminating the margin of error in calculations.

The accountability of leave management rests on the line managers, in most organizations and with the HR, in the others. The leave and absence data across the organization needs to be available to the senior management. This is hardly available. This creates a lot of discrepancies with regard to performance management and related processes. If there is automation and proper tracking of leaves, then this issue will not even raise. There will be complete transparency through data for the senior management as well as the line managers.

Some vital benefits of automating your organization leave management process include:

  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

Broadly there are two focus areas where organizations will enjoy benefits by automating the leave management system. The first one is the automation of the administrative tasks which made managers more productive. The second, but more critical is the improved accuracy that reduced the amount of paid off granted in error.

Managers’ Productivity Improvement

By automating the leave management process which is complex and labor intensive, these tools help in improving managers’ productivity greatly. The Leave Management tools and applications automate each and every step of the process which includes:

Leave Requests

Outbound offices and locations of organizations, especially when it is concerned with the retail businesses find the leave management tools from major workforce automation vendors including kiosks, portals and web-based self-service options for employees. These options enable employees and their managers to replace face-to-face discussions with effective media for communicating time-off requests and related information.

Research & Analysis

A database which has regular updates is easier for managers to refer and approve or reject leaves, instead of manual spreadsheets. This enables managers to reduce waste of time in analyzing each and every case in each location. This is easier for organizations in different states across the country or even across the globe.


Managers can eliminate the time-consuming and error-prone process of manually updating and employee’s leave balance and can approve, record time-off requests easily with and automated system.

Transparency & Accuracy

Automation of the leave management process helps in creation of a more transparent and accurate system in place. Employees are more likely to make only appropriate leave requests since they are aware that their managers are clear about their accrual balance.

The elimination of leaves granted because of error is also a benefit of automating the leave management process. According to a research, it estimates that in the absence of automated leave tracking, error-prone manual processes and managers’ reluctance to deny time-off requests cause the average employee to receive an average of 1.25 days of excess time off.

With all these benefits, every organization needs to opt for an effective leave management system as per their specific requirements to make the workforce management simpler and easier.

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October 2020