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Advantages of outsourcing leave management system

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Understanding leave management systems:

Leave management system is a platform to help employees to track used and available leaves and individual status, in just a few clicks. And also employee able to set multiple leave policies as per organization norms. These systems are able to effortlessly schedule and manage employee time. They enable HR to easily manage attendance for employees working in multiple time-zones, across multiple locations and shifts.

In the HR world, leave management can encompass several responsibilities. It includes training all managers on keeping accurate attendance records, coaching employees on how to request time off, and most importantly, the very time-consuming piece of keeping up with changes to federal, state or local laws while administering medical leave if applicable.

Paid time off has a significant financial impact on a company’s bottom line, and unpaid time off from work can lead to low morale and productivity decline. Consistent and accurate leave management helps the ensures smooth functioning in the organisation, knowing that their employees’ needs are met.

Here are some benefits of outsourcing leave management of your company:


The employer as well as managers have access to their employee’s leave balance and leave history. Even employees can view these details on their company portal in some cases. This makes leave rejection and or leave approval more transparent.

Awareness of leave policies

The system can convey leave policies pertaining to the minimum or maximum leaves permissible, a number of days necessary before applying for a long leave, holiday calendar management as per location, etc. Employees can access this information at any time.

Increases compliance

The online employee leave management system is customized according to a company’s leave policy. It will ensure compliance with the policy as the rules will be inherent and will therefore not allow managers and employees to bypass the rules or apply favoritism when seeking approval for leaves.

Creates employee availability visibility

Managers need to know how many team members they have to meet effectively deadlines. An online leave management system enables managers to view leave trends and leave data of employees. It assists them in rejecting or approving leave requests during critical project delivery times.

Adherence to the law

An online leave management system enables employers to adhere state laws governing employees. Without such a system, employers can easily fail to comply with the relevant rules and regulations, leaving them vulnerable to liability.

Encourages Discipline

Since this is a transparent system that complies with local labor laws and company policies, both managers and employees can easily understand the system without misunderstanding. It improves accuracy and encourages discipline in a company. Better employee attendance rates can also be expected because they will be aware of the consequences of not following company policy.

Reduce cost and increase productivity:

Absenteeism is expensive. In a year, mid to big size companies spend a lot of money on freelancers and replacement workers. A lot of those expensive missed work days can be easily avoided. Some employers give out more leave than required while others simply approve extra leave by accident due to error-prone leave management systems. A leave management system can reduce the costs of absenteeism by ensuring that you only approve the leave your employees are truly entitled to.