4 Signs Your Company Needs PTO Tracking Software in 2023
Many companies look for concrete opportunities for improvement as the financial year comes to an end and a new year begins - after all, New Year's resolutions also apply to companies! Why not reevaluate your PTO management in 2023?
While tracking paid time off (PTO) using good old spreadsheets, paper, or other manual methods has advantages (e.g., it's free and easy to set up), it can quickly become labor-intensive, time-consuming, and even counterproductive.
It is found out that 14% of companies increased their spending on PTO tracking tools in 2020, when the pandemic was just months old, in response to an unexpected increase in remote workers. While the need to monitor remote employees is contributing to the rise of PTO tracking software, many employers are also finding that the software increases overall productivity by reducing the amount of time spent entering data per day.
The PTO tracking software market is expected to grow at a compound annual growth rate of 20.40% between 2021 and 2028, and for good reason.
Indicators It's Time to Switch to PTO Tracking Software
Even if you've been tracking your PTO easily using paper, pen, and sticky notes for years, you should consider whether your current procedures need an overhaul.
Take a look at these four signs that PTO tracking software might be in order:
1. Employees are dissatisfied with the current approach.
Paid vacation is the second most important benefit for employees after health insurance. Employees who believe their employer supports paid leave report higher job satisfaction, engagement and motivation, which in turn leads to higher productivity and fewer unnecessary absences.
However, your current tracking system isn't sophisticated enough if your employees have to contact HR every time they want to see a new vacation schedule or find out their PTO balance. Employees must be able to plan their absence themselves and independently access information about the time they need.
When these options are not available to them, they often become frustrated with management. Additionally, during times of workplace disruption (e.g., increase in remote work, difficulty balancing work and life, increased risk of illness, unstable economic conditions, etc.), appropriate PTO management practices are more important than ever.
2. Time used for other tasks is lost due to PTO tracking.
It's likely that your time isn't being used effectively, especially if your company still processes data manually. Manually calculating PTO balances, reviewing each request, and coordinating vacation time for all team members can take several hours.
The time you can spend on more important tasks supporting your business, e.g. A lot of time spent, such as long-term planning, is likely diverted by PTO tracking. Additionally, it annoys employees when you respond excessively slowly to vacation requests - either because the process is inherently sluggish or because the request got lost in your cluttered inbox.
3. Closing your fiscal year is a nightmare.
The pencil and paper approach may seem like the most cost-effective solution at first glance, but that's not always the case. While it does not require expensive technology, it is prone to costly errors. Inaccurate handwriting, misplaced timesheets, or calculation errors can result in significant financial losses due to human error.
In companies where time recording is done on paper, the rate of calculation errors can be up to 8% of the total payroll. The fact that technology has solved so many of these problems is perhaps its greatest advantage.
If you've made the switch from paper to Excel, you should be aware that while spreadsheets are very helpful, managing PTO policies is not one of their primary functions. A significant amount of work is still required to ensure that all employees' balances, accruals and transfers are accurate.
Ultimately, the right PTO tracking software can make the end of the fiscal year a fleeting dream instead of a nightmare of drudgery by providing integrated customer support, easy access, and quick responses - in other words, a brave new world.
4. Your company plans to expand its workforce.
It's really that simple: the larger your team, the longer it takes to manage time off data manually. Optimizing your internal processes to increase efficiency should be at the top of your list when planning to expand or improve your business.
Even if your business has survived using manual tracking techniques, successful expansion requires much more than just additional PTO tracking. Onboarding, training, new equipment, more one-on-one meetings, and more are required for new employees. Not to mention the resources required to increase your company's production.
In other words, there has never been a better time to simplify operations. By using modern PTO tracking software that keeps your business running like a well-oiled machine, you can ensure you don't miss out on important money or other resources you need to grow and succeed!
How to determine whether a change is worth it
If cost is holding you back from upgrading, there are concrete ways to determine whether the investment is worth it - the return on investment (ROI) can be very revealing.
When weighing the pros and cons of purchasing PTO tracking software, don't ignore the following costs:
- The price for dissatisfied employees.Companies that don't have a plan in place to manage employee absences lose an average of $775 per year per employee. As previously mentioned, employees who work in an environment where appropriate follow-up procedures are not in place are inherently less engaged and satisfied; Implementing appropriate tracking software can effectively address this loss and increase productivity by boosting morale and engagement.
- The price of time invested in PTO tracking. If tracking paid time off is part of your job, look at how much time you spend · on it weekly, monthly, or yearly and then multiply that number by your hourly rate.
As you navigate the evolving landscape of PTO management, consider IceHrm's advanced solutions. Revolutionize your approach, enhance employee satisfaction, and boost overall efficiency with our innovative PTO tracking software.