Top 3 Leave Management Problems of Businesses

Enrique Estagle

17 October 2017    |   

Employees do take time off work. That is why leave management is an important part of the business. It’s a tricky process regardless if you have five people or five hundred people on your team. This is especially true if you’re still using old-school methods such as using paper forms or Excel spreadsheets for leave management. Here, we’ll take a closer look at the top three problems that occur with leave management, as well as how we can solve them with software. Problem #1: Difficulty for Employees to File Leave Requests and Finding Out Their Leave Balances You can be barraged time and time again by your employees not only to request for time off but also to ask how much leave time they have left in a year. This can take you away from your daily tasks, costing you valuable time. When employees can’t see immediately their leave balances, it’ll make it difficult for them to file requests. This can frustrate them, leading to increased job dissatisfaction. Problem #2: Employers Finding it Hard to Approve Leave Requests from Multiple People From time to time, two or more employees will request for a leave for the same day. Obviously, you cannot let all of them take time off at the same time. But who should you approve? For you to make the right decision, you’ll need a lot of information. You’ll need to know the reason why they are filing for leave, upcoming personal events (such as birthdays), and which shifts will clash with their time off. Problem #3: Payroll Errors Manually processing employee leave has a huge impact on payroll processing. Some employees are entitled to both paid and unpaid leave, which means that you have to take that into account come payroll time. And sometimes leave forms can be misplaced, making it easy to miss come payroll time. These mistakes can affect both the bottom line and your employee’s paycheck. It can make you pay someone for time off they haven’t earned. It can also lead to you deducting someone’s pay for time off they’ve earned, which can harm your relationship with that employee. The Solution: Cloud-Based Leave Management Software You can overcome the challenges that come with managing employee time off with cloud-based leave management software. Switching to it allows your business to automate the process, reducing the overall time spent for filing and approving leave requests, as well as updating leave balances. When considering getting leave management software for your business, choose those that simplify things for everyone. Look for a system that lets employees know their up-to-date leave balances before even filing their request. Finally, make sure that the software also integrates well with your payroll system to streamline pay calculation.

Employees do take time off work. That is why leave management is an important part of the business.

It’s a tricky process regardless if you have five people or five hundred people on your team. This is especially true if you’re still using old-school methods such as using paper forms or Excel spreadsheets for leave management.

Here, we’ll take a closer look at the top three problems that occur with leave management, as well as how we can solve them with software.

Problem #1: Difficulty for Employees to File Leave Requests and Finding Out Their Leave Balances

You can be barraged time and time again by your employees not only to request for time off but also to ask how much leave time they have left in a year. This can take you away from your daily tasks, costing you valuable time.

When employees can’t see immediately their leave balances, it’ll make it difficult for them to file requests. This can frustrate them, leading to increased job dissatisfaction.

Problem #2: Employers Finding it Hard to Approve Leave Requests from Multiple People

From time to time, two or more employees will request for a leave for the same day. Obviously, you cannot let all of them take time off at the same time. But who should you approve?

For you to make the right decision, you’ll need a lot of information. You’ll need to know the reason why they are filing for leave, upcoming personal events (such as birthdays), and which shifts will clash with their time off.

Problem #3: Payroll Errors

Manually processing employee leave has a huge impact on payroll processing. Some employees are entitled to both paid and unpaid leave, which means that you have to take that into account come payroll time. And sometimes leave forms can be misplaced, making it easy to miss come payroll time.

These mistakes can affect both the bottom line and your employee’s paycheck. It can make you pay someone for time off they haven’t earned. It can also lead to you deducting someone’s pay for time off they’ve earned, which can harm your relationship with that employee.

The Solution: Cloud-Based Leave Management Software

You can overcome the challenges that come with managing employee time off with cloud-based leave management software. Switching to it allows your business to automate the process, reducing the overall time spent for filing and approving leave requests, as well as updating leave balances.

When considering getting leave management software for your business, choose those that simplify things for everyone. Look for a system that lets employees know their up-to-date leave balances before even filing their request. Finally, make sure that the software also integrates well with your payroll system to streamline pay calculation.

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Is this the end of the ‘Great Aussie Sickie’?

The ‘Great Aussie Sickie’ is becoming a myth in Australian workplaces as the number of Australians cashing in on sick leave for the post-Australia Day long weekend decreases. We recently conducted a survey and found that more employees are opting to take annual leave instead of the stereotypical ‘sickie’. We’d analysed the number of single day leave requests submitted by employees for Friday 27th January. The sample consisted of over 20,000 randomly selected employees from more than 500 Australian businesses, with the majority working in hospitality, retail, quick service restaurants, medical and manufacturing. It was found that sick leave requests for the 27th of January were down 24% on the January median, however, requests for annual leave were up 481% on the 27th compared to other days of the month. This data suggests that Australian’s are giving up on the sickie, opting to follow the rules and take annual leave instead. Potentially saving businesses millions over the Australia Day weekend. Our Co-Founder Alex Ghiculescu was surprised by the findings, saying that “there’s always been this idea that ‘chucking a sickie’ is an integral part of the Australian workplace culture. So it’s surprising to see the opposite occurring after Australia Day.” Ghiculescu said, “I think when employees have access to a system that allows them to view and input their leave for themselves, that they are more likely to use leave allowances correctly.” It is important that businesses have the correct tools and means to manage employee leave accurately and appropriately. When asked about the future of the ‘sickie’ Ghiculescu said, “I think further research into the effects of technology and best business practices would go a long way in helping businesses to manage employee leave in the future.”

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About the author

Enrique Estagle

Enrique was the former editor-in-chief of Tanda's Blog.

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Events & Media

Is this the end of the ‘Great Aussie Sickie’?

The ‘Great Aussie Sickie’ is becoming a myth in Australian workplaces as the number of Australians cashing in on sick leave for the post-Australia Day long weekend decreases. We recently conducted a survey and found that more employees are opting to take annual leave instead of the stereotypical ‘sickie’. We’d analysed the number of single day leave […]

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