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Leave Management System

A leave management system is software that streamlines time off requests for employees. Typically managed by human resources, an automated leave management system makes it easy to track, approve, or deny employee leave requests. Read below to learn more details about cloud-based leave management systems, their benefits, and more.

What is a leave management system?

A leave management system is a system that employers use to allow employees to request leave and managers to approve requests made by employees. In the past, this was done manually by using sheets of paper to keep track of how much leave time employees had available. With an automated leave management system, you don’t have to worry about losing paperwork or missing employees’ requests for time off. Using an automated time and leave management system, and utilizing an adaptable HRIS platform, is an important part of modernizing your business practices. A good leave management system is cloud-based, automated, and digitalized, so requesting and approving time off is easy and you don’t have to worry about any paper records getting lost. In addition to using these systems to receive and approve time-off requests from employees, there are also automated leave and payroll management systems that you can use to take the hassle out of tracking time and paying everyone on time. The more you can take advantage of these automated, cloud-based systems, the more time and money you’re saving.

Why are leave management systems important?

Leave management may sound like a simple concept, but there’s much more to it than just approving leave requests. For starters, there are many different varieties of leave types and time-off requests, each with their own approval process and requirements, such as paid time off and parental leave.  For most employers, managing employee leave records requires a dedicated strategy including automated leave management software. Administering leave manually is a hugely time-consuming task for your management or HR team without HR software tools. In most cases, an integrated online leave management system is optimal for keeping track of incoming leave applications, remaining leave balances, and pending management approvals. When you take care of employee leave requests on paper or verbally, you run the risk of forgetting about an employee’s request or misplacing the sheet of paper that says how much leave time they have. With an automated leave management system, you won’t forget about requests employees have made and you don’t have to worry about keeping track of employee leave since everything is digitalized. Compliance is a big deal when it comes to leave management, and you don’t want to get in trouble for non-compliance. With automated leave management software, it’s easier to maintain compliance, which helps save your business time, money, and trouble.

What are the different types of employee leave?

As an employer, it’s important to have a basic understanding of how employee leave works and what the different types of leave are. Here are the most common types of employee leave with a quick explanation of each:
  • Paid time off (PTO): Paid time off (PTO) is a set amount of leave employees are given each year. While people generally think of PTO as vacation time, other examples of PTO include jury duty and maternity leave.
  • Sick time: Sick time is specifically designed to allow employees to take care of their health. An employee may request a day off using sick time because of a physical illness or a mental health issue.
  • Vacations: Vacation is one of several uses for PTO. Time off is considered a vacation when an employee is taking time off for the purpose of leisure. If an employee is traveling somewhere for business or health reasons, that’s generally not classified as a vacation.
  • Leaves of absence: A leave of absence is an extended period of time away from work, which employees may request for various reasons.
  • Parental leave: Paid or not, parental leave is when a parent of a child takes time off to take care of their child, which is common with newborns.
  • Holidays: Holidays are specified days where employees either aren’t required to work or days where employees receive holiday pay (typically 1.5x regular pay) if they do work.
  • FMLA leave: Family and Medical Leave (FMLA) can be used if employees need time off for a health problem, a newborn, or to take care of a family member with a health problem.
If you want to run a successful business, you need to make it easy for your employees to get the time off they deserve. Make sure you understand these types of leave and what differentiates one from the others.

How do leave management systems work?

A cloud-based time-off management solution streamlines your leave request and approval workflow by putting necessary employee information in a single, easy-to-access database. Managing leave requests and absences digitally also helps ensure compliance with FMLA and other key leave-related legislation.

What are the benefits of an automated leave management system?

There are many reasons why investing in an automated leave management system is a good idea for your business. Explore some of the benefits of automated leave management systems below:  
  • Reduce paperwork: With automated leave management, you don’t have to worry about keeping paperwork organized and using paperwork to respond to leave requests. Everything is digitalized and cloud-based, so you can avoid paperwork and quickly find what you need.
  • Improve productivity: Keeping track of employees is easier with an automated leave management system. You can see who’s taking time off and which days they’re taking off, allowing you to adjust schedules on the fly to avoid understaffing.
  • Remain compliant: Compliance is important when it comes to employee leave, and a cloud-based leave management system makes staying compliant easy.
  • Reduce payroll errors: When you don’t have to file paperwork and handle payroll on your own, you’re significantly less likely to make costly payroll errors.
  • Improve communication: Employees can easily request time off with these systems, Plus, you can provide a written response with your approval or rejection of the request.
  • Automate processes: Some requests can be approved or denied automatically, so you don’t have to spend your time thinking about which PTO requests to approve. This is especially useful for large companies tracking time and leave requests for hundreds or more employees.
Ascentis' powerful time and attendance software can help you with all of your leave management needs. With Ascentis software, you can digitalize leave management requests and responses to save time and money. Plus, everything is safe, yet easily accessible thanks to the cloud. You can even automate some processes to save time and money. With Ascentis time and attendance software, leave management is easier than ever before.

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