What is an automated leave management system?

An automated leave management system is a tool that takes care of employee leave requests, manages their leave balance, keeps the managers and the HR team informed through an approval workflow, ensures policy compliance, and gives you accurate reports on the time off trends in the organization. 
Leave management systems can either be a part of the HR software or standalone software. The idea is to automate the redundant tasks around leave management, such as sending leave requests via email, managing leave reports spreadsheets, getting leaves approved via endless calls and emails, etc. With an automated leave management system, applying for leaves becomes a cinch for employees, and HR teams can remain updated about the time off trends effortlessly.

freshteam leave management system freshteam leave management system

Why is an automated leave management system important?

An automated leave management system helps provide a seamless employee experience and enables them to their fullest potential by automating monotonous tasks and redirecting them to more critical, strategic tasks. 

Employees are the backbone of an organization. Their contribution drives the company’s success. It is essential to provide tools that enable them to perform to their full potential and not waste time on repetitive tasks and follow-ups, such as sending emails for time off requests, managing time off reports on spreadsheets, and coordinating with managers for time off approvals and so on. 

It is not wise to dismiss leave management since companies must pay for unpaid leaves and encash unused leaves when an employee exits. This is where automated leave management comes in. Efficient leave management will help organizations save time and money and ensure the smooth functioning of the organization.

Benefits of the automated leave management system

An automated leave management system would be an excellent investment with numerous long-term benefits. Some of them include:

Bid goodbye to paperwork

Leave management on paper is tedious, not to mention time-consuming. You need to place leave requests on paper, wait for their approval from the manager, store the leave requests on physical files, etc. 

With a cloud-based automated leave management system taking care of these processes in a few clicks, employees, managers, and HR teams can breathe a sigh of relief. 

Save copious amounts of time.

With increased automation, you have more time in your hand, which was hitherto unavailable. This will help you contribute meaningfully to strategic decision-making, plan employee onboarding better, and focus on providing a kickass employee experience. 

Avoid manual errors

Manual work is prone to human error. It can be a mistake in the number of leaves, erroneous leave processing in payroll, or delayed approval due to policy violation. An automated leave management system will automatically process leave balances, calculate the unpaid leave for payroll, notify approvers of the policy violations (if any) and accelerate the approval process.

Improved collaboration

A leave management system lets employees plan their leaves well and help the team plan better for their unavailability. Managers no longer have to worry about last-minute work delegation, and employees no longer need to overwork to compensate for the lack of personnel. Everything is planned and executed accordingly. 

Better decision making

The nature and pattern of leaves can talk a lot about the employees and their relationship with work. For instance, unhappy employees tend to take more leaves. With advanced leave reporting, you can identify the absenteeism trends, talk to them and offer solutions. Similarly, you can spot the defaulters, take corrective measures, and ensure the smooth running of the organization.

Improved policy and legal compliance

Amidst busy work, it is difficult for managers to keep tabs on policy compliance and manage leave approvals. A leave management system will check for policy compliance and notify approvers, helping them make quicker decisions and ensuring compliance.

Top 5 automated leave management systems

1. Freshteam

Freshteam leave management system takes care of the entire from start to finish. No matter how complicated your leave policy is, Freshteam can accommodate it. 

Flexibility and ease of use are prime features that make Freshteam the best automated leave management system. You can set up different leave types, configure different limits, customize each leave type based on multiple criteria, and do much more. If you have offices booming up in multiple locations, create policies and holiday calendars that cater to that region so that you are inclusive of your employees' needs. 

Employees can request leave from anywhere and anytime, view the availability of their team members, and get them approved without delay, thanks to email reminders and notification. 

That’s not all. You can also set up half-day leaves or calculate leaves in hours/days based on the government rules of the office location. Would you like to get the hang of Freshteam? Try it for free for 21 days! 

2. Sage

Customizable leave policies, multi-level time off approvals, employee self-service, and detailed leaves - you name it, and the Sage leave management system will take care of it for you. With Sage leave management, employees can request leaves in a single click, let their team members know about their availability through shared calendars, and get them approved in no time. With automated payroll processing, it keeps account of all the unpaid leaves, making life easier for the HR team.

3. GreytHR

Set up your holiday calendar, manage different types of leaves, set up multiple leave policies, and do much more with the GreytHR leave management system. With automated leave approvals, timely reminders,  and scheduled leave reports, GreytHR will take care of leave management with minimal human intervention. 

4. Attendancebot

Attendancebot is the perfect choice for medium-sized companies looking for a comprehensive system to manage leaves, track time, and set up employee schedules. You can manage different leave types, configure limits for each, and inform everyone of the employee leaves using the calendar integrations. 

Timesheets will let you know about billable hours and bill your clients accordingly. Further, using the insightful dashboard, you can track the availability of different employees working on different schedules. 

5. Timetastic

A simple, easy-to-use leave management system, Timetastic helps you stay on top of your employee leave requests. Employees can request leaves, check for their leave balance, and plan their vacation on the team calendars so that everyone is updated. 

Managers can plan the week based on their employees’ availability thanks to the weekly schedule and daily notification. If you are getting started with leave management and looking for a tool to make the transition to automation easier, this is your best pick.


Frequently Asked Questions on Automated Leave Management System

Who uses a leave management system in an organization?

There are mainly three stakeholders when it comes to managing leaves

1. Employees: These are folks who apply for leaves. They can apply for different types of leaves offered by the company. Using the employee self-service portal, they can view their leave balance, check their team calendar, and view the status of their leave request.

2. Managers: Apart from the function of an employee, a manager can approve/reject leave requests submitted to them. They can also view their teams’ calendars, receive notifications and reminders about their employees' unavailability and view the time off report of their team members.

3. HR team: HR teams can perform all the functions of an employee, in addition to access to leave reports. These reports are useful for payroll processing to keep track of unpaid leaves. 

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