How an Automated Leave Management System Improves Employee Productivity

Every employee needs time off. We all know that an overworked employee is unproductive. Vacations are especially critical because they prevent burn out.

A recent report from Gallup shows that of almost 7,500 employees who participated in their survey, 23% reported feeling burned out at work all the time. 44% said that they feel burned out sometimes. The report concluded that about ⅔ of full-time workers experience burnout in their jobs.

As an HR leader, how will you inspire productivity and performance among your workforce without your employees getting burnt out?

The answer lies in how you manage your employees.

The Significance of an Automated Leave Management System

 The pandemic has led to a re-evaluation of most functions in the workplace. Employees’ needs for time off are no exception.

With the emotional wellbeing and mental health of employees becoming paramount, employers are re-thinking their leave policies. Providing alternative scheduling and work hours have become key factors as Work From Home (WFH) has become the norm. 

As HR personnel find themselves getting more involved in business tactics and strategies, they still need to run the day-to-day aspect of the organisation – including coordinating staff leave requests. At several offices, the employees have to run behind their managers with leave forms to get a signature. While the managers are scurrying around with excel sheets to figure out leave balances.

This is where a Leave Management System can make a difference. 

Onboarding leave management software can transform everyday productivity. Without a structured Leave Management System at hand, HR faces many kinds of pressures, such as the HR inbox choked with employee queries regarding leave. With Leave Management Systems, you can say goodbye to manual errors and inaccurate data. With employee leave being automated, HR teams have more time in their hands to focus on more strategic and value added tasks such as employee engagement.

Benefits of a Leave Management System

Below are some of the ways that a Leave Management System can become a productivity-enhancing tool. 

Increased employee satisfaction

With a leave management system, employees can request time-off and get approval from managers, in real-time. This provides transparency, saves time, reduces unexplained absenteeism and increases employee satisfaction, together leading to heightened employee performance.

Superior employee confidence

When employees get fair and proper leaves, they have more confidence in their organisation, which results in productive and motivated employees.

automated leave management system

Proper leave planning

Planned absences give employees ample time to plan vacations. With information available online and in advance, their managers have all the data needed to organise alternative resources. 

Proper implementation of state employment and labour laws

Ensuring that employees get the right amount of leaves as mandated by law creates respect for the organisation. 

More resources to improve employee productivity

The costs of implementing a Leave Management System are small compared to the benefits it provides. A fully integrated LMS can help save time and money which can be used on initiatives that further improve productivity.

An efficient leave management system can configure all leave rules, including work-weeks, balance distribution, accrual calculation, encashment policies, etc. specific to their organisation while complying with all state and central regulations. 

Six features to Look for in a Leave Management System

If you are looking for a leave manage system to deploy in your organisation, here are the features you must look at before making a purchasing decision.

1. Customisation 

Every organisation has its own leave policies. A leave management system should have the option of being customised according to the policies and procedures specific to your organisation.

2. Tracking of Unscheduled Absences

Keeping an account of unscheduled absences can be tedious. To manage them effectively, absences need to be identified early and the problem nipped in the bud. An automated system can be seamlessly integrated with your attendance system and the manager can mitigate costs by deputing another employee to cover up.

automated leave management system

3. Reduction in Payroll Errors

A leave management system gives HR access to an auto-populated employee leave calendar that is integrated into the payroll software. All calculations happen automatically on the system, leaving no room for error.

4. Increase in Employee Satisfaction with Mobile Compatibility

With a leave management system, HR can apply, approve, reject, or manage all leave related operations on a mobile phone.

5. Employee Empowerment with Self-service

Employees no longer need to run from pillar to post, getting leave balance information, apply for leave, or to know whether leave has been approved or rejected.

6. Improved Decision Making 

Your leave management system captures employee leave data and can generate tailored, analytical reports, eliminating all manual efforts, saving a considerable amount of time for HR.


A leave management system should delete your worries, rather than create more complications. Choose a system that seamlessly enables you to centralise all your employees’ leave information, from leave requests, to leave starting dates and end dates.

The conclusion is clear: implementing a powerful leave management system will significantly reduce admin costs while enhancing productivity.

Also Read: What is Employee Accountability & How To Improve It?

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