5 Best Leave Management System to Simplify Employee Absences

With various types of leaves to track and the regulations around pay leave (PTO) evolving in certain states, Excel spreadsheets and paper-based systems aren’t sufficient for the task. Employers require a leave management system (LMS) that can track leave balance and field worker requests for leave in real-time.

The right leave management software can streamline workflows, reduce human errors, and automate the most important aspects of the leave management process.

Let’s examine how leave management software works and the main advantages of a leave management system.

What Is a Leave Management System?

A leave management software (LMS) is a cloud-based system that enables organizations to manage every aspect of time off for employees, from basic sick days to the more complicated parental leave and even specific types of leave like “paternity” leave.

In conjunction with an LMS, HR may:

• Process leave requests and approvals instantly
• Automated accrual calculations
• Check for compliance with the laws governing labor
• Generate reports for payroll and planning

Employees, on the other hand, receive transparency, comfort, along control over the personal leave information.

Benefits of a Leave Management System

Implementing a new LMS could cost you both time and money. However, when it is done properly, it will reduce time and cost in the long term. Below are five ways leave management systems can help improve the user experience for employees and benefit your human resource team.

1. Reduce Human Error

Paper-based systems, as well as spreadsheets, can be prone to errors. Managers are prone to overlook a leave request that’s written on the calendar, or even sent through Slack. In addition, they may be negligent in notifying the department responsible for accounting, which can result in payroll errors.

2. Time Savings & Efficiency

Automating approvals for leave requests relieves HR staff of tedious admin tasks, which allows them to focus on strategic initiatives.

3. Compliance

Built-in policy enforcement and accurate record-keeping minimize the risk of not complying with Labor laws (U.S. Department of Labor, 2024).

4. Reporting and Visibility

Managers get insights into leave trends, and help forecast staffing requirements and identify issues that could arise early.

Also read: 5 Free Payroll Software to Automate Payroll & Save Time

How Do Leave Management Systems Work?

Leave management systems work through a central platform that HR personnel can use to manage requests for leave from all departments. As opposed to having different systems for every department, cloud-based leave management software is designed to make it easier the track leave with a standard approval process.

A typical process for approval could look like this:

• Employees log in to the self-service portal or mobile application to submit a leave request and provide on-leave periods and the type of leave requested.
• Your HR team receives immediate notice of the request for leave and decides whether to accept it, refuse it, or request documentation.
• The employee’s manager, coworkers, and other team members can see any accepted request for leave on a central schedule to help them determine their schedules accordingly.
• Approved leave period will be recorded on their timesheets and sent by the accounting department, which will reduce the risk of payroll errors.

Top 5 Leave Management Systems

1. edays

edays is a leave management system designed to assist global companies in managing employee absences, holidays, holiday time, and all kinds of leave. It lets employees request leave and managers decide whether to deny or accept these requests through a central platform.

Why I Like It: One thing I love is its capacity to handle complicated leave policies across various locations and employee types. The platform provides global templates that allow compliance with country-specific laws and support different languages. It also allows the creation of customized types of leave, like holidays for birthdays or volunteering days, that cater to the unique organizational needs.

Pros:

• Automated alerts for absence tracking
• Global compliance & multi-language support
• Covers all leave types

Cons:

• Mobile app has limited features
• Time-consuming setup

2. Vacation Tracker

Vacation Tracker is an intuitive leave management system, making it simple for employees and managers alike to process leave requests, approve time off requests, and record vacation periods.

Why I Like It: Real-time availability and self-service capabilities allow HR personnel to more efficiently perform administrative duties, manage calendar integration, and customize alerts to keep employees updated about leave activities. The tool’s ability to support different locations, remote teams, and departments ensures that every team member has access to specific policies for leave and holidays.

Pros:

• Customizable leave policies
• Real-time leave tracking
• Advanced leave management features

Cons:

• Limited integrations with HR tools
• No hourly time-off requests in the basic plan

3. BambooHR

BambooHR is a full HRMS that is a complete human resource management (HRMS) equipped with tools for tracking time and leave management, onboarding and hiring, and monitoring performance, payroll, and benefits management, as well as a database for employee records.

Why I Like It: This platform was included on my list due to its simple time tracking and leave management system. It also offers an entire feature suite that can be used to manage other essential HR functions. Your employees can keep their records updated and run payroll, monitor performance, and collect engagement data all within one platform. This helps further integrate HR processes and ensures that all systems are in sync with each other.

Pros:

• Lots of integrations available
• Built-in communications hub
• Helpful employee self-service portals

Cons:

• Pricing is not transparent
• Some features come as paid add-ons

4. Buddy Punch

Buddy Punch is an advanced time tracking and scheduling solution designed specifically to address the workforce management needs of small to mid-sized businesses (SMBs). By employing geofencing technology and face recognition features, Buddy Punch ensures accurate time tracking, straightforward scheduling, and seamless time-off management for employees.

Why I Like It: I selected this leave management system due to its innovative approach to scheduling and time tracking by blending user-friendly features with modern technology. Geofencing capabilities and facial recognition provide greater precision and safety, ensuring employees can clock in/out at designated areas while eliminating buddy punching practices.

Pros:

• Wide range of integrations
• User-friendly interface
• Facial recognition technology

Cons:

• The payroll module is only available for the U.S.
• Expensive compared to other software

Also read: Top 10 Employee Scheduling Apps

5. actiPLANS

actiPLANS offers a simplified leave management solution that streamlines the request and approval of time off requests, PTO accrual calculations, and produces informative reports with ease.

Why I Like It: This tool stands out due to its straightforward user interface and flexible leave types. These characteristics make it simple for employees and managers to comprehend absences in the workplace and plan their absences accordingly.

actiPLANS offers businesses looking to simplify and optimize their leave management a convenient tool that facilitates instant approvals, customized PTO accrual policies, and comprehensive reports to facilitate improved resource planning and policy compliance.

Pros:

• User-friendly interface
• Comprehensive reporting
• Customizable PTO accrual rules

Cons:

• Can’t edit requests
• Limited integrations

Choosing the Right Leave Management System

The switch from manual tracking of PTO to a dedicated leave management system is among the most effective ways to minimize mistakes, save time, and enhance the transparency of your company. Excel spreadsheets and email chain systems, and calendars that are not connected can’t keep up with today’s fast-paced workplaces. They also make it easy to make costly errors.

The right-leave management system:

• Automate requests, approvals and accruals to help you save time every week
• Ensure compliance with the laws governing labor and internal policies
• Create visibility to ensure that teams and managers can always be aware of who’s on hand
• Scale up with your company as you expand your workforce or your policies change

Key Takeaway

The right leave management software can significantly affect your business’s efficiency and employee satisfaction. We hope that our top choices can help you find the right solution for your organization’s unique needs.

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