What is Leave Management Software?
Leave management software refers to a system through which the company HR/manager can accurately allocate, track, approve or reject leaves. It also enables employees to apply and keep tabs on the number of leaves taken by them. The modern leave management system comes in the form of a web-based application which can run on any operating device and device. Employees can apply for leaves from their work desk or home (if they’ve been taken by the hands of sickness). They can even attach their medical certificate to their leave application if they wish to do so.
Being an essential aspect of any business, leave management encompasses several kinds of leaves namely, sick leave, casual leave, paid leave, maternity/paternity leave, compassionate leave and more. A leave management software helps sort out the leaves and keeps chugging along preventing a pile up. Imagine the mess if you had to keep a track of leaves on mail or paper, sifting through a ton of them at the end of each month to process the correct payroll. It’s enough to send a shiver down one’s spine! So, if you don’t want to feel that shiver, it’s best to go for a leave management system.
Who Needs Leave Management Software in India?
Any kind of business establishment which has got employees on its payroll needs a leave management software. Plain and simple, that’s the truth. Once an employee joins an organisation, he is due a certain stipulated number of leaves as per the company leave policy. To manage employee leaves, whether they’ve been approved or rejected, you need an effective leave management software to keep on top of it. It doesn’t matter if you run a clothing store, fast-food outlet, a school, a hotel, or an MNC; you need a software solution to track the number of leaves availed by your workers. The basic purpose of any leave management software is accurate tracking of leaves taken by employees and balancing them with their accrued leaves to process their payroll without committing any errors.
Why You Need Leave Management Software?
In today’s day and age, leave management software
has become an integral part of all kinds of businesses. If you don’t want to face a scenario wherein you’ve been flooded with leave requests and are having a tough time coping, choose a system which helps you make sense of it all. You can plan to ensure work doesn’t suffer with employees taking vacations left, right and centre. Schedule leaves in such a manner that you’re not left shorthanded and can meet project deadlines on time.
Modules in Best Leave Management Software
Leave management is in and of itself a vital solution which forms an integral part of top HRMS software
too. We’ve compiled a list of modules which you will get with best leave management software available in the market.
: An essential module of the best leave management system, it allows employers to easily process employee leave requests with it. You can integrate your company’s holiday calendar and leave policies seamlessly with the solution to better support and monitor employee time off. Moreover, you can design myriad types of leaves such as vacation leave, sick leave, maternity leave, paternity leave, child care leave, etc. Furthermore, you can configure rules with respect to the regulation of these leaves in adherence with company and state policies.
: You can generate multiple reports with graphical representation of leaves, holidays, weekends and statuses. With leave management software, you can plan, manage and track employee availability. It also helps in the seamless integration with payroll, among other processes. You can also generate predefined and ad hoc reports based on employee leave data. For instance, leave reports related to the leave availed, leave encashment, negative leave balance, year wise summary report, day wise leave transaction report, and leave transaction report to name a few.
Leave Policy Definition
: Under this module, multiple types of leaves are defined and configured such as personal leave, sick leave, casual leave, maternity leave, etc. You can define and enforce a different set of rules for different classes of employees (trainees, technicians, managers, branch managers, senior managers, regional heads, etc.) In addition, you can determine policies regarding clubbing of leaves based on location and the number of years served. Moreover, you can manage employee leaves
based on the date of their joining.
Holidays and Restricted Holidays
: You can design multiple holiday lists based on location, department and process within your organization. For example, companies give holidays on the occasion of Onam and Pongal in South India. Similarly, Durga Puja is a huge festival in West Bengal & Bihar. Plus, you can also specify the restricted and official holidays, so that your employees can plan and choose the leaves they want to take.
: Good leave management software can generate leave cards through which employees can view their leaves – credited, taken, rejected, lapse, balances, etc. Managers usually have permission to view the leave cards of their subordinates so, that they’re appraised about the availability of their team members and can plan ahead accordingly. Also, through this solution, you can enable employees to view leave applications of their team members so that they can plan their leaves, allowing minimum disruption of work.
: Through this leave management software module, employees can apply or cancel their leaves, while managers can approve or disapprove leaves. You also get the facility of lapsing leaves either automatically or manually. In addition, you can track all leave encashments along with the crediting of leaves based on the company leave policy. This module enables direct linking of LOP leaves to payroll for automatic deduction in employees’ salary.
: By employing a leave management software, the management of leave applications becomes like a walk in the park. Administration of leave applications encapsulates applying for leaves online, forwarding the application to the approver, intimating the approver, and the approver approving the leave and sending an alert to the employee. It also helps in linking the HR, employees and the manager through email where each entity receives a notification whenever an employee applies for a leave.
: This module found in various leave management software available in India, consists of crunching numbers with respect to year-end accounting & adjustments related to encashment, carry-forward, etc.
Features in Top Leave Management System in India
Top leave management software offers multiple features which help in effortless tracking of employee leaves. Here’re some of those features:
Design and Management of Leave Policies
Top-notch leave management systems enable employers to design and manage leave policies. They can create rules and customise the policy with respect to accrual calculations, half-day leaves, clubbing of leaves, over utilization of leaves, short leaves, etc.
Imagine you’re the company HR and a major holiday like Holi, Diwali or Christmas is coming up…and you’re getting leave requests from left, right and centre! Heck, why imagine it? It happens every major holiday! With the assistance of a top of the line leave management software you can say goodbye to confusion. You can easily find records of past leave history of employees and balance them with their remaining leaves for the year easily. You’ll have access to all previous leave applications thereby, increasing transparency levels within the company. As an HR manager, you’ll be easily able to balance leaves taken by employees with the ones left in their leave bank.
Easy Access to FAQs about Company’s Leave Policies
It may seem trivial to you but having a set of FAQs which answers the oft asked questions of employees like, Are Saturdays off? How many leaves can I take in a month? Does the company offer compensatory leaves? All these questions can easily be answered with FAQs without having to peruse the entire leave policy of the company. A good leave management system should ideally auto-generate these without you having to feed them in. This would eliminate the need to contact your HR or manager for clarity on leaves, as the information would already be displayed on every employee’s leave page. All an employee would have to do is click on the policy and voila! All their questions will be answered. This helps save time and effort of both the employers and the employees!
Auto-Generate the List of Public and Company Holidays
Effective leave management software maintains a list of public and company holidays for easy access to employees. Herein, employers can save time by not having to send notifications to employees reminding them about the holiday. Usually these holidays are fixed and occur every year, employees can generate/download a list having all the leaves incorporated in it. Firstly, it’ll save the effort of creating a new holiday list each year, as the employer can simply click and choose the leaves that must be implemented in his/her organisation.
Reduces Payroll Errors
Imagine having to manually keep tabs on leaves taken by employees and then subsequently calculating the amount due to them to run payroll. What if you had access to an auto-populated employee leave calendar which was integrated with your payroll management software? For one, it’ll make your life a hell of a lot simpler, as all calculations would take place automatically on the system. By having an online leave management system in place, you can ensure your data’s accuracy and iron out any errors that may result in transfer of inaccurate salary or non-transfer of payroll. This will go a long way towards increasing efficiency of your HR and reducing errors on payroll.
Majority of online leave management systems in India offer mobile version of their solution through which managers can apply, approve, reject or manage all leave related tasks on their mobile phones. Whether it’s remote location-based attendance tracking
, flexible working hours, claiming expenses, reimbursements, or leave applications – a mobile leave management software is nothing short of a boon.
Advantages of Leave Management System Software
There are a number of advantages which you can avail if you go for an absence & leave management software. Let’s run through them for you.
Exact and accurate information
: The foremost benefit of best leave management software is that it helps you readily access accurate information about employees’ leaves. Information such as the number of leaves taken by your workforce, trends w.r.t. leaves, and leave balances at a moment’s notice. Rather than wasting your time with a tedious and long drawn out process, you can gather all the requisite data through a single click and save yourself from filing through registers or gleaning Excel sheets. Also, when you have precise and correct information in your hands, generating payroll becomes a cool summer breeze.
: Since all information is readily available to both employees and managers
, employees cannot complain about the lack of transparency. With a top-notch leave management system, they can easily check their leave history and leave balance. Moreover, it makes approving or rejecting leaves a more transparent process.
Empowers Employees with Self-service
: We hope you realize that this isn’t an ideal scenario when your employees must run hither to thither to check their leave balance or get their leaves approved. So why not give your employees a self-service portal where they can execute all these tasks without missing a beat? An employee self-service portal would first eliminate the need of having to approach the manager or HR for getting leave requests approved. This portal acts as a single point of access to all employee data, helping make leave management convenient for both, employees as well as managers.
Raises awareness about leave policy
: If you’re employing a leave management software, you can send notifications and reminders about certain aspects of the leave policy. Aspects such as the maximum / minimum number of leaves an employee is permitted to avail, holiday calendar management as per location, and the number of days required before applying for planned or long leave. Employees should be encouraged to refer to the leave policy before applying for vacation days.
Assures compliance to leave policy
: Having a leave management solution
ensures compliance with the company’s leave policy. So, favoritism cannot come into play while applying for or approving leaves.
Visibility of employee availability
: So, you’ve got a hot project and the deadline is looming like a swinging axe atop your head, what are you going to do? Precisely nothing. If you’ve got a leave management software up and running, you can easily find out the availability of team members. This is essential information when it comes to meeting project deadlines. With this module, you can analyze the leave trend data of employees. You can prepare a leave schedule which would help you in approving or rejecting a leave request during crucial project delivery times without wasting time.
Adherence to law
: Every country has laws pertaining to labor and the amount of leaves they’re eligible for. And it’s the responsibility of the employer to adhere to these laws and ensure their compliance. If the firm fails to fulfil these requirements, it may leave them vulnerable to prosecution. You can avoid falling into this tangle by implementing a top leave management software, which is compliant with the local city and state laws as well.
Q. First things first. In order to use leave management system, do I first have to invest in new IT infrastructure?
A. No, you don’t have to. You simply need a computer device whether it may be a tablet, mobile, laptop or a desktop with a good internet connectivity and you’re good to go.
Q. I run a small business having just 25 employees. Do I purchase leave management software or not?
A. If you are having trouble in employee attendance tracking, checking employee leave balances, the number of leaves accrued by workers, and so on, leave management software has the answer for you. Basically, it’ll make your life that bit easier. No more maintaining paper records/registers and leafing through the pages to check employee attendance/leaves for processing employee payroll.
Q. So, leave management software is available in both on-premise and cloud versions. Which version should I go for?
A. On-premise is best suited for companies having their own IT team and dedicated infrastructure for IT applications. On the other hand, cloud leave management software is ideal for firms who do not have a dedicated IT resource team. So, you save bucks right there! Plus, on-premise leave management software requires considerable investment vis-à-vis license purchase, annual maintenance cost, etc. Cloud leave management software offers the freedom to pay on a monthly/yearly basis.
Q. Do I need to pay annual maintenance fees?
A. Annual maintenance fees is applicable only for on-premise software licences purchased by the company. If you’re paying subscription fees for cloud leave management software, you do not have to pay any annual subscription fees.
Q. Top leave management system have multiple modules. But I don’t need all of them. Can modules be purchased separately?
A. Yes, you can purchase modules as per your company requirements. If your primary need is to find out the number of leaves encashed by employees, choose leave reports module. Keep track of the approved/rejected leaves with the leave transaction module. Keep a tab on employee leaves/vacation days/sick leaves with the leave management/holiday calendar module. Basically, you can pick and choose which module you want and build from there or buy the full leave management software complete with all the bells and whistles!
Q. I had to make last minute changes to my plan. Can I cancel my leave request?
A. Yes, you can. All you have to do is visit your Leave Summary page where you van view your leave requests. Simply, click on Cancel Leave and you’re in business! Voila!
Q. Can I check the number of leaves I’ve availed during the year?
A. Of course! Just visit the Leave page wherein you can view details of your leave requests. In some leave management software, the leaves are bifurcated as per LOP, Comp-Off, Annual Leave or Restricted Holiday.
Buyer's Guide for Leave Management Software in India
If you’re looking to buy leave management software, there are certain criteria which you may need to evaluate first before taking the leap. Let’s find out what you need to keep in mind before investing in a leave management software:
The first step on your journey to buying leave management software is assessment of your need. Whether you really need it or not. Do you want a core leave management portal that takes care of your major leave management tasks like defining a concrete leave policy, time and attendance? Do you need a leave management software to seamlessly integrate with your payroll software? Or you require a customised leave management software solution that fulfils your niche requirements such as balancing employee leaves and generation of custom leave reports such as leave encashment report, negative leave balance, leave transaction report?
After you’ve performed the internal assessment, you’ve to choose the best leave management system according to your defined needs from a list of available leave management software.
- To Budget or Not to Budget
The beauty of leave software in India is that you have several options to choose from. Options which are available at different price models. If you’re a heavy hitter, you can go for an on-premise leave management solution. If you’re working on a limited budget, you can take a monthly/yearly subscription. You also have the option of ‘pay per use’ where you pay as per the bandwidth you utilise.
- Demos – Do I Need Them or Not?
Check if the leave management software in India comes with free demos or trial version. This is especially useful if you don’t want to make a sizeable investment without having a look at the software first. Find out if the leave management software fits the bill and offers the features/modules you’re looking for. After going through the demo, evaluate if you’re comfortable and willing to take the jump.
- Don’t Forget About User Experience! (UX/UI)
UI plays a vital role when it comes to choosing a leave management software solution. The design aesthetic of the system, how pleasing it is on the eye, its user-friendliness can swing the buyer’s decision. An exhaustive leave management software overflowing with modules, will not overwhelm the user if its backed by a clean and easy to use interface.
List of Top 10 Leave Management Software Sellers
- Zoho People
- ADP Leave Management