Managing resources, especially manpower is one of the most critical yet tricky challenges faced by any organization. Manpower forms the backbone of any business and henceforth, aligning them with company policies and supporting them grow in terms of company loyalty in a multicultural environment and across multi-geographical locations. When spoken to human resource veterans, they ranked leave management as one of the top 5 pain points plaguing the human resource department apart from recruiting resource manpower, retaining the resources, ensuring compliance to policies, managing diversity in the workplace, change management and fostering the tier-2 leadership. So, before the discussion boils down to how leave management software streamlines the HR processes, it is imperative that we deep dive into the leave management challenges and how its mismanagement serves as a recipe for disaster.

Aftermaths of Mismanaged Leaves in an Enterprise

Everyone wants the salary bang on time but why take so long while reporting leaves and absence from work? An honest answer to this question easily brings to light the challenges faced by the HR and the finance team in computing the payroll based on the calculation of accurate working hours, leaves availed and promotions ‘with immediate effect’. It is not just about managing and correctly computing the leaves to the ‘T’ but encouraging compliance to company’s policies and fostering next line of leaders. 

Taking a deep dive, let’s understand how poor leave management impacts the overall operations of an enterprise

  1. Project failures owing to poor resource planning- Project planning calls for taking into account a lot of factors and the availability of skilled resources is one of them. Allocation of manpower depends on their availability and matching skill set. In the wake of a dynamic and competitive business ecosystem, it is critical to bring in a great deal of automation to manage the manpower and support with project planning. Poor resource planning can lead to disasters when it comes to project delivery and the quality of service delivered.
  2. Unnecessary financial liabilities to the company- Payrolls are generally calculated based on the working hours, leaves availed, and promotions. Therefore, calculations from the bulk of excel sheets become extremely tiresome and error-prone, leaving no space for the HR and finance department to focus on other critical operations.  Accumulation of paid and privileged leaves can add up to the cost of the company.  Keeping a track of leaves of every employee in an organization and sending personalized notifications to avail them a regular interval is an impossible feat. Accumulated and un-reported leaves are a cost to the company.
  3. Negative impact on individual performance- Non-compliance to an organization’s leave policy impacts the overall work culture of an organization. This is because every employee avail leaves differently based on their priorities. Lack of the mechanism such as online leave management software to bring everyone on the same platform can be devastating. This impacts the productivity levels of employees.
  4. De-motivation and increased attrition rate- It is only logical that mismanaged leaves of the employees lead to an inaccurate calculation of payrolls and faulty leave notification. Lack of automation can make the calculation of payrolls tedious and time-consuming. This can be one major let down for the skilled and resourceful employees with a natural progression of events leading to increased attrition.

Bridging Operational Gaps with Leave Automation

A major part of putting all operational processes in place involves streamlining the workforce with the management policies and working principles. Therefore when it comes to HR processes, the major challenge lies in putting every employee on the same platform when it comes to employee leaves and payroll. So, let’s take a look at the business benefits derived from the implementation of enterprise leave management platform.

  1. Appropriate project allocations- The automated leave management mechanism enables project managers to log in to their dashboards and access the resource pool. This can help them identify available resources for upcoming projects. This enables them to plan the project workflow and meet all deliverables.
  2. Automated and personalized leave calculations and notifications- The employee leave management software has individual dashboards wherein the computation of paid and privilege leaves are recorded. When an employee avails a leave, the residual leaves get automatically computed and a notification is being sent to the employee. All these leave records get updated in the data pool of the HR manager. So the problem of notifying every employee periodically is automated.
  3. Accurate payroll computing- With the accurately computed data, there is a complete elimination of chances for error in calculating payroll. This makes the dispersal of salaries on time extremely easy and achievable y-o-y irrespective of the increase in the workforce.
  4. Centralized repository of employee leave history-Every time a change happens in an employee’s leave status, the leave management platform generates an employment history. This can be accessed by project and HR managers for clarification in case of any dispute.
  5. Compliance to company policies- The leave management system works at an enterprise level where the HR managers upload the company policies regarding leaves and payroll. This gets updated in the individual dashboard of the employee and serves as a ready reckoner in case of doubt. This further eliminates the constant need for re-iterating the leave policies every time there is a new hire.

Further Reading

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