How Automation helps in Leave Management

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Automation in leave management is not a new concept in 2022. It has been tried and tested by several software vendors and companies and has become a staple of medium to large businesses. However, smaller businesses and start-ups are still hesitant of opting for a leave management system even now.

Hence, we are here to help you understand how automation helps in managing your employee leaves efficiently and why you should invest in an online leave management system today.

Automation and Leave Management

We have provided a few benefits of having an online leave management system, especially from the perspective of a small business.

Saves Time

First and foremost, having leave management software greatly reduces the time and effort required to undertake leave and associated tasks. HR can look into other activities to improve employee engagement instead of taking care of the administrative tasks related to their employee leaves.

Having a leave management system proves especially beneficial to smaller companies as the HR department in these companies usually consists of a lesser number of individuals and they would already be burdened with other HR tasks. As such, the additional automation provided by the leave management software helps reduce their workload.

Improves Transparency

Another important advantage of an online leave management system is that it improves transparency within the company. The employees opting for leave would be able to understand the leave approval hierarchy as well as understand who approved their leaves.

Modern leave management software also includes the option for the team members to view each other’s leaves to understand how to apply for it diligently. Having such transparency also results in reduced bias and increased team bonding.

Removes Errors

A major issue with manual leave management methods is the prevalence of data entry errors. HRs are human beings after all and they may enter incorrect data into their spreadsheets which could result in inaccurate reports later.

On the other hand, an employee leave management system would be able to ensure accurate data since it is automated in nature. The HR needs to enter the details manually only once when the software is being set up initially. Later, the software would be able to undertake all of the required tasks on behalf of HR, thereby ensuring an error-free database.

Automates Compliance

Having an online leave management system helps in remaining compliant with all of the legal requirements of the government. While HR was required to keep a track of all of the statutory compliances initially, it has become automated with the introduction of leave management systems.

Since the system is online, it can also be updated by the software vendor remotely, thereby avoiding the need to remember any new leave regulations. Having this option helps start-ups especially since they are the ones under pressure to ensure that their new employee policies consider all of the regulations. They also have limited resources and paying hefty fines for incompliance would gravely affect them.

Provides Analytics

The modern HR department thrives on data and deploying an online leave management system helps in gaining valuable insights into the employees’ leave related behaviour. Having this data helps HR in making smart decisions for the company future.

The recent ‘Total Financial Impact of Employee Absences’ report by SHRM observes that overtime was used to cover 35% of employee leaves. However, considering that the overtime cost is 200% in India, it is important to keep a check on the employees who are taking frequent unplanned leaves.


As is evident from the article, having an employee leave management system helps the company immensely in automating the leave and associated HR tasks. It especially helps a start-up streamline their leave policies as well as improve the overall efficiency of the HR team in dealing with their employee leaves.


Guest article written by: John Paul Davis is a content writer with Pocket HRMS, an innovative 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.

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