5 Ways in which Poor Leave Management is Impacting your Business

Leave Management Software

Despite being an important aspect of a company’s payroll, leave and absence does not get the kind of attention it should. Managing it is too big a goal given that many companies do not even track employee absence! Leave management processes hold a significant place in company policies because paid time off significantly impacts a company’s bottom line. Apparently, businesses have greatly started taking interest in employee attendance management system and workforce management software that are breakthrough alternative to massive paperwork that is both time-consuming and costly. Moreover, it restricts the scope for manual errors.

Generally it is the line managers and HR department that share the responsibility for tracking employee leave and attendance. Nevertheless, when it comes to planning or decision-making, management fails to get the kind of data needed to estimate the overall picture. This happens because either such data is not tracked at all or the lack of automation leads to distorted data. Also, all the manual work involved may discourage the staff from pursuing the added responsibility. With an employee attendance management system in place companies can easily overcome the big issues that revolve around leave and attendance management. Some of the major problems that businesses go through in the face of poor leave management are:

  1. Legal problems

Every nation has legal rules for employee leaves that can give nightmares to any employer who fails to comply. Failing to meet the complicated requirements of employee related laws can lead to serious liability. There is always the risk of being sued by the employees and penalized by government authorities.

  1. Resource crunch at the time of project delivery

Without automation i.e. without workforce management software in place it becomes impossible to track the availability of human resources. Such information is crucial for managers when making decisions related to project delivery schedules.

  1. Financial liability

According to the laws employees are entitled to paid leaves and privileged leaves, which when accumulated can increase the financial liability of the company. For a company is bound to reimburse the pay for such untaken leaves at the time of separation or as and when required by employee. The HR department should prudently keep track of this and regularly report it to the management.

  1. Impact on employee performance

Both kind of employees, who take too many leaves and those who do not take enough leaves can have performance issues. This follows from the fact that work-life balance is crucial to one’s performance. Management might have to step in where there is a gap. Constructive steps like coaching can be taken in this direction.

  1. Demotivation due to mismanaged leave system

Following from the above point, work-life balance is important to an employee’s performance. Employees have personal needs that might demand leave from the office. If an employee does not get leave when he needs it the most then the situation can lead to demotivation and low morale. Keeping score of employees’ leave and attendance gives clarity on the number of leaves that every employee can take. Employee as well as employer/ manager will be easily able to decide on the probability of leave approval.

About Eilisys Technologies:

Eilisys technologies, is a comprehensive solution that covers every aspect of the HR process spectrum:  Workforce Administration, Recruitment, Performance Management, Talent Development, Payroll, HR Analytics, Enterprise Collaboration and Mobile. An Eilisys technology is a Web-based HR Payroll Software that automates critical business-to-employee strategic and administrative processes.

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