Leave management is one of the primary responsibilities of the HR department. Poorly managed leave management systems or processes have wide-ranging consequences-both for the business and employee morale and productivity.

Time-off requests are governed by leave management policies, such as sick leave, vacation days, parental leave, etc. Thus, the process is also known as time-off management.

When payroll processing is faulty or leave balances are incorrectly calculated, employees can get irritated quickly. In addition to mishandling leave, projects can be hampered by un adequately managed leave.

Here are some of the risks associated with inefficient leave management systems:

1. Inadequate staffing systems

Flawed leave management systems don’t give you an accurate picture of how many employees are on leave at any given time or which employees are on leave or slated to go on leave.

Leave may be approved in excess of what your business can handle, and essential projects may be delayed.

A skill shortage is often prevented by hiring more people than necessary. Overstaffing is a costly practice.

2. Increased costs

Inefficient leave management can cause your business to lose money in several ways.

When viewed in isolation, the cost of processing each employee’s leave and updating changes may seem minimal. However, when the total for all employees is considered, the cost will be high.

The cost of rectifying a human error in manual leave management systems should also be considered.

3. Unresolved leave issues

To prove attendance and leave, if you still use spreadsheets, or worse-registers, to record the timings, you need to stop right away.

One of the shortcomings of manual systems is the difficulty of providing evidence when an employee disputes a leave request. As a result, your company will incur more expenses in accordance to solve the same.

As a small business, if you do not record leave because you believe you remember how many leave an employee has taken, you may be underestimating the number of leave taken. Further down the line, payroll management and additional leave approvals can cause problems.

4. Poor employee morale

It will significantly impact employee morale if employees cannot take leave when they need it because the leave management process is inefficient, and your leave policies are unclear.

Keep a note: Employees who are dissatisfied and lose interest at work are affected by low morale. It is more likely for them to quit, which increases the expenses of hiring and training new employees.

On the other hand, managers with an efficient leave management system can systematically approve leave, clearly communicate leave policies, and even automatically approve sure leave.

Keeping your leave management workflow smooth builds trust between you and your employees, allowing them to give their best which indeed helps give better productivity.

6. Inappropriate use of sick leave

Sick leave is undoubtedly a vital benefit provided to the employees. Unfortunately, many companies suffer from excessive use of sick leave due to improper management. Not only does this cost a company a significant amount of expense, but it also decreases employee engagement.

Considering this, you might ask why employees would try to abuse sick leave?

A company’s employees may attempt to take advantage of a poorly designed leave management system if they learn that the system is flawed. Employees may actively violate attendance policies. Two examples of sick leave abuse are as follows:

  • The employee does not inform their supervisor or manager that they will be taking a day off
  • The employee fails to provide a medical certification when required.

What can you do to minimize these risks to your business?

ScheduleLeave is a reliable solution for managing leave that helps optimize your leave management process. Say goodbye to spreadsheets and other cumbersome paperwork forever.

The following are some of the main features of ScheduleLeave:

Final thoughts:

ScheduleLeave simplifies the process of booking and managing time off. Put an end to complicated spreadsheets, paper forms, and emails for approval using easy-to-use staff holiday planner software. Manage holidays and absences in real-time, ensuring that your leave management is straightforward yet effective for planning and predicting employee holidays.