How an inefficient Leave management affects Business?

How an inefficient Leave management affects Business?

According to a recent study on India’s working population, it has been stated that almost 47% of the population in nation is working. So, on a rough account, we can say that about 35 crores of people are working somewhere or the other.

Think about the numbers working in small and medium enterprises. A huge number of people rely on functioning of these SMEs and businesses. Managing them and performing accurate payroll tracking their attendance and leave data is an important and equally critical task for the HR department.

What could be the possible inefficiencies at leave management?

• Case of uncaptured leave

Companies have different types of leaves. Some of them are PL (Paid leave), LOP (Loss of pay), and maternity leave. These leaves are defined as per eligibility for employees. Like ML can be only availed by women for 6 months and so on. With so many considerations and terms, leave management for workforce could be difficult.

Assume that you miss 1 leave for 1 employee every year. Do you know how will it impact you? At leave encashments. Suppose employees are successful in saving their 1 PL at the end of year and you need to encash that. Due to miss-tracking, you now have to sustain the loss. The loss here can be calculated as amount of 1 leave encashment x no. of employees per year. That could be around INR 1 Lakh.

• No compensatory leave credits

With no automated leave management, COMP OFF credit becomes a struggle. May be due to mis-punch or biometric machine error, an employee couldn’t mark for the day and HR missed the update. Later no credit for the leave leads to bad relations at workplace. Disputes may occur. For better employee experience, automated leave credits and calculations is must.

• Lacks MIS reporting

Lack of reports on demand is another disadvantage of manual leave management. an automated leave management system helps you with informative and detailed MIS reports in clicks. This saves a good deal of time and efforts to the HR and management. reports keep you on track with leave details of every employee. It ensures you do not miss any important credits or deductions pre payroll.

Whereas, online leave management software could be one of your picks. It helps keep track o all data and ensures fool proof attendance management and therefore payroll.

Here’s a quick glance of benefits of an online leave management system:

• Hassle free reporting
• Leave approval/ rejection through mobile
• Flexible HR
• Leave parameters (PL, LOP, etc.) explained
• Easy and error-free encashment
• Money saved on curbed errors

And much more…

Thanks for reading!

Good luck.

Author bio-

Ritik Singh writes about HR (Human Resource) software, cloud and enterprise technology. A dynamic content writer who writes for Pocket HRMS, a leading provider of cloud-based HR software with inbuilt AI-powered HR Chatbot (smHRty) to small and mid-sized businesses across India.