Categorized under TECHNOLOGY
Date posted 14-Mar-22
Just a 6 minute read
473 times viewed  

4 Must Know Benefits of Leave Management System

4 must know benefits of leave management system

Employee management is not complete without management of their leaves. With companies asking their employees to resume working from their physical offices nowadays, leave management has become a hot topic for debate.

The employees who have been enjoying the flexibility of working from their homes and even undertaking other personal tasks during their working hours do not wish to take leaves for completing the same tasks once they start working from their offices. In this scenario, having an employee leave management system helps in managing their leaves effectively.

Hence, let us understand what is a leave management system and the four must-know benefits that help in efficiently managing their leaves with the help of leave management software.

What is Leave Management?

As with any form of regulation in an organization, employee leaves also require proper management. Leave management refers to the process of managing the leaves of the employees by categorizing them correctly, providing options to request and approve leaves, providing avenues for their encashment, etc.

One should also take care that all the required statutory regulations are satisfied when developing company-wide leave policies. These regulations vary by region and hence, the HR department should consider the local laws before developing the leave policies.

As a result, leave management requires a lot of planning and dedication from the HR department. Once the company sets the leave policies, they need to ensure that the leaves are provided as per the policies and that the employees benefit from them. This is where a leave management system comes into the picture…

What is a Leave Management System?

Leave management system is software that helps the company to manage the leaves of their employees effectively. It helps the HR department to credit the predetermined amount of leaves for the employees at the beginning of the year. On the other hand, it also helps the employees in requesting leaves and the supervisors in approving their requests. It also helps the account team to find out the exact number of leaves taken by the employees in a matter of a few clicks without disturbing the HR team.

The employee leave management system helps in keeping a track of the employee leaves and helps HR in generating reports that would lead to better management of leaves in the upcoming year. Modern leave management systems are digitized and automated in nature. There has also been a shift towards cloud-based leave management systems recently owing to the increasing accessibility of high-speed internet services.

Now that we have a robust understanding of leave management software, let us identify the four must know benefits of an online leave management system.

4 Must-Know Benefits of a Leave Management System

1.      Avoid Manual Paperwork

With the help of a dedicated leave management system, one would be able to avoid manual paperwork that would also take longer than the automated approach of the software. When we remove the paperwork out of leave management, it becomes much more streamlined and simpler.

On the other hand, the manual approach is prone to human errors and is time-consuming. With the paper-based method, it would take several days to tally the leaves and allocate them to the right employee. It would also involve several emails between different departments. However, all these processes become automated with a leave management system. There is no need to manually tally leaves since the software itself keeps a track of employee leaves automatically.

2.      Real-time Data Visibility

Being an online software, data is updated in the system in real-time. Hence, employees, managers and the HR department can view real-time data and make necessary decisions based on the data shown by the system. For example, a manager would be able to view an employee’s past leave records and understand whether they have a pattern of taking unnecessary leaves and hence, decide whether to process the leave request or not.

Real-time data visibility also helps the manager understand the number of employees currently in the company during a shift. Having this information would help them understand whether to provide leave to employees during a certain period in a year. Additionally, employees can also exercise caution with their leaves once they view their team members on leave on any specific day.

3.      Automated Statutory Compliance

Due to the automated nature of the leave management system, it can provide leave and attendance values for accurately processing employee payroll. The system is also able to consider statutory compliances while processing employee payroll. It is done automatically with zero input from the HR or the supervisors.

The employee simply provides their asset information for tax exemptions and the system can calculate the tax deductions and exemptions based on it. Hence, deploying a leave management system also helps you avoid tracking statutory changes constantly. Additionally, any new updates to the statutory compliances are automatically updated by the software vendor and incorporated into the system. Hence, the HR department need not keep a track of these regulatory changes constantly.

4.      Enhanced Leave Analytics

Analytics and reporting are an essential part of any employee leave management system. With a dedicated analytics module, companies would be able to decipher inherent patterns in their employees’ leave frequencies. They would be able to understand whether their employees are taking leaves during a specific period, understand the reason behind it and provide a holiday to help them save a leave.

Additionally, with the help of leave management software, companies would be able to identify those employees who are taking leaves frequently and have a word with them to understand the reason behind their behaviour. If the reason is genuine, the company might even consider providing alternative solutions like hybrid working for such employees. Similarly, the leave management system is also able to provide accurate overtime data for each employee, thereby ensuring that there are no errors in processing their payroll on time.


As we have discovered, deploying an online leave management system is one of the easiest ways of helping the HR department automate the management of employee leaves. It provides the HR team with accurate data for employee attendance and leaves, that help them with accurate payroll calculations. Additionally, it also helps the employees in keeping a track of their leaves to ensure that they do not go overboard with it.

These extra conveniences of automated leave tracking, accurate payroll processing and auto leave credit and debit helps your HR become more efficient with their leave management and related tasks. Hence, it is imperative to have an online leave management system, especially in this digital age.

Author Bio:

John Paul Davis is a content writer with Pocket HRMS, an innovative AI-driven cloud-based HR software provider in India with over a decade of loyal clientele. His handiwork usually reflects the latest technologies in the HR domain.



Thank you for giving your 6 minute :)
Share this Article :
Liked ? Knowledgeable ? Intresting ?
Copy Paste. Not useful. Boring.
Times Viewed  

Online Business Directory
STATS till last day