The Benefits Of Using An Annual Leave Management System

Posted in: Money Saving Tips

One of the most important processes worked on by the human resources department of any business is leave management.  Although it does not require too much of the manager’s time, it can be a very delicate balancing act approving the various holidays that your employees want.

It is a two sided coin really because on one side, the human resources department has to make sure that it complies with company policy regarding leave an that there will be a continued availability of resources to ensure the business can operate as normal; while on the other side, it also has to do all it can to boost the satisfaction of employees.  As anyone who has ever worked will understand, it can lead to poor and tense employee-manager relationships when people don’t get the leave they want.

Many businesses do not give annual leave management the appropriate amount of serious consideration and attention; studies have shown that poorly handled leave management can have a knock-on bad affect on a company’s performance.  It can cause problems for employee morale and project deliveries.  In the following article you will find a list of the most critically affected business issues related to leave management.

Project Delivery Deadlines

When your company do not have enough members of staff it can affect the schedules for your project deliveries.  When they agree to specific delivery dates, managers have to make sure they have enough employees available to keep those dates.  It is important to understand when the peak leave periods are and avoid too many planned deliveries or those times.  Additionally, as deadlines approach for projects, leave should be approved cautiously.


Each country has very different legal rules when it comes to the subject of employee leave.  In America, laws such as the FMLA or Family and Medical Leave Act can perplex and scare employees with its very general and wide definition of generous provisions for leave and medical conditions.  However, when these legal requirements of this complicated law are not followed properly, it an be mean costly liability cases against companies and even individuals.

Emotional Side

As employees will have a variety of personal needs that they will require leave to attend to throughout the course of their employment with a company, it is important to their morale and satisfaction to get this leave when they need it.

Implications To Company Finances

A company’s accrued leave is a financial liability; especially when it comes to privileged and paid leaves that need to be reimbursed by the employee according to the leave policy or at the time of separation.  When your employees do not take enough time off work it can impact the financial liability of your company negatively.

The Overall Performance Versus The Leaves

An employee’s performance has been proven to be greatly affected by a poorly planned out work-life balance.  When employees either take too much leave or avoid taking the right amount of leave, it impedes their ability to perform their job well.


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