What is a cloud-based leave management system?

A cloud-based leave management system is a tool that enables your employees and HR team to handle time off processes anywhere, anytime, and from any device. It allows employees to apply for leaves, access their leave balances, and view the team calendars from any device. At the same time, managers can approve/decline leaves, check policy compliance, and gain insights from advanced time off analytics without being bound to an on-premise device. 

Usually, small businesses with fewer than 100 employees prefer using independent cloud-based leave management software because it saves from hassle and expenses around storing data in-house. A cloud-based system can be integrated with HR software when the company scales.

Why should you move to a cloud-based leave management system?

There are numerous challenges to managing time off manually, irrespective of the company size. The HR team juggles multiple responsibilities - leave management is just another task on their ever-growing to-do list. This can affect efficiency, employee experience, and productivity, eventually impacting the bottom line. Instead of investing their time in strategic decision-making, HR teams are stuck with tracking time off on spreadsheets and papers. They have to calculate the unpaid leaves and eliminate payroll errors manually. This is where a cloud-based leave management system can help immensely.

Benefits of using the cloud-based leave management system


1. Centralize time off management: From placing leave requests, approving leaves, viewing leave balances, to tracking employee leaves, employers can manage the entire leave management process under one roof.

2. Reduces unplanned absences: Sending leave requests on paper or email can be a pain. Employees may not get their leaves approved on time, and it would be difficult to collaborate with their managers if time off is managed by email, forcing employees to take unplanned leaves. With cloud-based leave management software, employees can place their leave requests with the click of a button using the mobile app and get them approved instantly, helping them plan their leaves better.

3. Reduces administrative costs: With a cloud-based leave management system handling all the tedious, repetitive tasks, companies can save time, money, and paper on all the administrative tasks. HR teams no longer need to dedicate a team member to manage time off anymore. Everything happens with a single click, and from anywhere. 

4. Improves workplace productivity: With the employee self-service feature, employees can log in and apply for leaves in the app, view their time off balances and earned leaves, access time off policies, and manage their leaves better, thus saving their time. It becomes easy for managers to collaborate with their team, view their team’s availability, and plan their goals accordingly. Further, they can schedule and view the time off trends in the organization and take corrective measures at the right time, effortlessly. 


5. Ensure compliance: Each country has its own employment laws. To manage employees all across the globe, you need a tool that can handle compliance of the different geographies in one place. With an online leave management system, you can manage multiple time off policies, associate concerned employees with specific policies, and let them access it as needed.

Features to look for in cloud-based leave management software:

1. Employee self-service

With the employee self-service feature, employees can place time off requests, keep track of the approval process, and view their time off balance, without the intervention of the HR personnel. 

2. Time off approval workflow

Each company has its own time-off process. Ensure that your leave management software lets you customize the approval workflow to your liking. 

3. Time off balances

Let your employees plan their holidays better and much ahead of time. Time off balances will tell you about the team’s availability and plan your team goals accordingly.

4. Customizable time off policies

Manage the time off policies of different geographies in one place, and ensure that it is compliant with the laws pertaining to that region. 

5. Email alerts and notifications

Cloud-based leave management software will notify both employees and managers alike, whenever a leave request is placed, approved, or declined, keeping everyone updated all the time.

6. Mobile app

The best thing about being on the cloud is that it is easily accessible, from anywhere and from any device. The cloud-based leave management system provides just that. 

7. Analytics

Stay on top of all the time off trends, identify the defaulters, and take corrective action whenever needed with time off reports.

8. HR integrations

Choose a cloud-based leave management system that grows along with the organization, adapts to its increasing needs, and integrates well with your HR software.

FAQs on cloud-based leave management system

Is a cloud-based leave management system free to use?

Yes, many cloud based leave management systems offer a free plan that offers essential features for small businesses and startups who don't need a full fledged HR system. 

Is it safe to use a cloud-based leave management system?

Yes. Cloud companies usually have their servers located in warehouses that cannot be accessed easily by employees. HR systems like Freshteam have a multi-tiered security system where the data is encrypted, letting you focus on the data at hand, and not worry about security.