IceHrm Looking for an HR software for Your Company?
IceHrm IceHrm team write blogs and tutorials about using IceHrm efficiently to manage HR activities of your organization. Create Your IceHrm installtion here:

Benefits of an online Leave management system

  Reading Time:

What is an online holiday management system?

An online leave management system is a web-based leave management application that automates every step of the employee leave management process without compromising functionality. Unlike onsite leave management tools, an online leave management system gives employees the freedom to request, approve, reject and manage vacation requests from anywhere, at any time and from any device.

Navigating through the minefield of leave management without a leave management system is a tricky challenge. If you are only equipped with conventional tools such as paper forms, e-mails and Excel spreadsheets, your chances of survival are quite low. Even small missteps can lead to disasters, such as reduced resources, errors in salary processing and legal complications.

Even the commonly used Google forms are not effective enough to solve some of the important problems of leave management. All of these tools that can’t manage leave only eat away at your employees’ productivity and efficiency.

What good is your leave management software if it requires too much manual intervention to work properly? The distorted data obtained with these archaic tools are useless.

Without manual sorting, you can neither understand nor identify the problems in this chaos. Even then, the accuracy is questionable. To avoid administrative arsenic, legal landmines, and payroll pitfalls, you need a robust vacation management system. Before exploring the software market to find the ideal leave management software, you need to understand the pros and cons of the leave management process.

Why is Leave Management important?

Although some employers want their employees to stay at work all the time, they need their fair share of free time to rest and recuperate. An overworked employee is an unproductive employee. Managing leave is about managing employees’ leave requests fairly, accurately and efficiently.

The responsibility for managing employees’ leave requests lies with supervisors, Human Resources and Personnel Management.

Characteristics of a Leave Management System

A Leave Management System (LMS) automates the leave request process and makes it easier for management and employees. The solution of your choice must be robust enough to manage all phases of a leave management process in a transparent manner: Request, approval/refusal, leave submission, leave balance management and analysis.

A good leave management system includes the following features:

1. Comprehensive dashboard

Employees can check their leave balances and verify their colleagues’ leave days while they are applying for leave. Supervisors and HR staff need access to employee leave balances, leave lists, service plan and staff coverage to better assess leave requests.

2. Configurable fields (leave type, policy, leave request list)

Policies and procedures vary from one organization to another. A strict vacation management system with the mantra “One size fits all” may not meet your needs. Look for a product that allows your employees to customize fields to match your organization’s policies.

3. Cloud-based

A cloud-based online leave management system will not only provide multi-channel and mobile access but will also eliminate issues such as software installation and updates. Your employees can request, approve or reject vacation requests from anywhere at any time.

4. Automatic update of vacation balances

Purchasing leave management software is unnecessary if your HR staff must manually calculate and update your employees’ vacation balances. Your attendance management system needs to track the vacation history of all employees and display it to employees and their supervisors.

5. Customizable approval process

You must be able to create customizable workflows and establish a hierarchy at the department level to ensure a streamlined process. Once an employee has chosen his or her department, the predefined workflow should fill automatically.

6. Seamless integration

Legacy software is archaic, outdated and creates data silos. A product that integrates seamlessly with your other human resource management software for payroll, timesheet management, etc., saves time, eliminates silos and creates cross-functional reports.

7. Overview of the reports

Your product must include an integrated reporting module that creates interactive reports based on the data collected. Employee and company-wide reports make it easy for companies to analyze trends and obtain actionable information.

Benefits of using a leave management system

A leave management system is an all-in-one platform that processes all vacation requests from employees while ensuring that their activities run smoothly. Here is what robust leave management software does for you:

  • Eliminates paperwork
  • Eliminates manual intervention
  • Improves communication
  • Provides real-time data visibility
  • Ensures compliance with legislation
  • Reflects the values of your organization

The solution for your leave management

It’s time to find a leave management system that allows you to hover over the minefield instead of stumbling over it. Take responsibility for and automate your vacation management process, save administrative time, reduce payroll errors, eliminate manual dependencies, eliminate paperwork, and simplify the processing of vacation requests. A cloud-based SaaS platform can solve all your leave management issues and make it worry-free.

Many organizations around the world use the IceHrm HR Cloud and IceHrm on-premise solutions to streamline their leave management process. Our easily customizable vacation management system reduces the time and effort your HR staff spends on paperwork, centralizes vacation and leave information for easy access, reduces the risk of vacation abuse and increases productivity across the enterprise.

What is the simplest and at the same time the most important and time-consuming HR process in your HR department? Leave management. The vacation approval process is one of those things that may seem simple on the surface, but actually takes a lot of time if you’re not prepared for it.

Once managers receive a request for leave, they must assess an employee’s eligibility, verify compliance with leave policies, ensure that there are enough staff for the day and make a decision that will not affect employee satisfaction.

If there is enough time, it should be easy. But the real world is full of last-minute sick calls and spontaneous requests for leave. Add overflowing spreadsheets, multiple request channels and a touch of manual intervention to the mix, and you’ll end up with a confusing process. How do you unravel it all?

In today’s technological age, you don’t have to waste time or go through monstrous problems to untangle the nodal points of your employees’ vacation management. Modern human resource management tools can help you avoid frictional losses in the process and let it practically run itself through an integrated online leave management system.


Research shows that poor leave management can cost companies 20.9 to 22.1% of their payroll. Poor leave practices not only affect employee performance and morale but can also affect project results. So you need to take responsibility for your leave management process.

Instead of using a stand-alone software package for leave management, companies can make better use of it by implementing a comprehensive human resources management system with an integrated leave management module.

Try IceHrm which is one of the best HRIS systems which has so many HR functions automated into one system.

IceHrm is a Human resource management system for small and medium-sized organizations. This HRM software centralizes employee data and allows only one authorized person to access it, providing a high level of security. The presence module monitors employee time based on information about insertion and perforation. It covers all the basic HRM needs of a company such as Time Management, Training, and Development, Attendance Management, Expense management, leave management, Recruitment management and handling employee information.

Benefits of an online applicant tracking system

In today’s job market, companies that use an applicant tracking system (ATS) are best placed to quickly attract, identify and hire the best candidates. On...

Importance of having an employee data-based management system

At the moment it is the team that is successful, not an individual. The employees of a company are a crucial part of its existence and...

IceHrm   Create your IceHrm, installation today.