Farewell to PTO Spreadsheets: Embrace Advanced Management!

How does your company track and manage paid time off (PTO)? How does this method work for you?

If your answer involves spreadsheets, this article is for you. When spreadsheets became available, they had many advantages over manual calculations, as they were a flexible way to store data and automate calculations.

However, in today's world, they are no longer an ideal solution. In fact, PTO tracking spreadsheets can increase the risk of errors and challenges. Although spreadsheets are an important part of business management, there is a better option when it comes to tracking PTO accrual and use.

Why track paid time off?

Paid time off (PTO) is a valuable benefit that companies offer their employees. Employees rank paid vacation as the second most important thing after health insurance. In addition, employees who believe that the company encourages them to take holidays report that they feel better at work.

But if you don't have an overview of accrued free time, it can cause problems. Companies that do not have an absence management plan lose an average of $775 per employee per year. Managing time off is even more important in times of workplace disruption.

Employees who care are productive, motivated and engaged. Engaged employees are less likely to have unnecessary absences, and that is good for the company. With better attendance control and PTO management, you avoid destructive absences.

How do you handle PTO?

Company policies for PTO administration may include the following steps:

1. Prepare and document the guidelines for taking time off in the personnel handbook.

1. Give managers training in the system for approving time off

2. Track employees' time

3. Calculate the employees' balance

4. Possibility of transfer at the end of the year if applicable

5. Adjust for seniority if applicable

6. Answer employee questions about PTO

7. Notify employees that accrued leave will soon expire.

But when you use spreadsheets instead of a PTO tracker, the entire process is manual. You have to enter the employees' hours, set up the formula and make sure it works as it should. Even a small error in PTO tracking can lead to large labor costs.

Options for holiday tracking

Your company has several options to consider when figuring out how to track accrued PTO and manage time off requests.

PTO Tracking Spreadsheet

As mentioned, one option for vacation tracking is a spreadsheet. But spreadsheets are not designed to handle PTO accrual, and require the use of very complex formulas. Even basic earning guidelines require extensive Excel skills, and there is still a high risk of error.

Benefits of a PTO Accrual Worksheet

• Inexpensive: When a tight budget is a deciding factor, a PTO tracking spreadsheet may seem like the only option. But can your business afford the costs associated with failure? Penalties and fines can quickly become high.
• Suitable for small teams: If you have a small workforce, it may seem like a PTO tracker spreadsheet is enough to get the job done. But as the business grows, it will quickly outgrow Excel.

Disadvantages of PTO Tracking Spreadsheets

• Time-consuming: Entering and calculating complicated formulas is not particularly time-consuming.
• Error-prone: Manual processes are more error-prone, so the best way to reduce the risk of errors is to automate accruals and requests.
• Does not handle complex methods of accruing PTO: Many companies offer more and more PTO the longer one is seniority, but a tracking spreadsheet cannot handle anything more complex.
• Difficult for larger teams: As the team grows, the PTO tracking spreadsheet will no longer fit the needs of the business.

A better option: PTO tracking software

The other (and far better) option is software that tracks PTO accrual and manages the entire process from start to finish. IceHrm is one such solution, and it's designed with the needs (and budgets) of small business owners in mind.

Monitoring employee PTO

When you create an employee in IceHrm, you can set policies for earning paid time off. Custom policies are available and easy to set up.

Your team members will love the employee-centric PTO interface. They can see their balance at any time. Cloud-based systems are accessible from all connected devices, day and night. This feature alone saves the HR team a lot of time checking the balance of the employees.

Requests for time off

Employees can also request time off via the same system. In this way, everything is kept in order and avoids that requests are missed. It helps the managers to plan the schedule and ensures fair treatment when it comes to holidays.

For example, let's assume you have a first-come, first-served holiday policy. You can trust that the system records the dates of all vacation requests and approvals.

Busy managers don't have to worry about forgetting a verbal vacation request. The system is objective and transparent. The managers can entrust the memory to an infallible system, which is very important for the employees.

PTO synchronized with scheduling

When an employee's vacation request is approved, the PTO tracker sends the dates to the scheduling tool. If you try to set up a schedule for the employee during the approved holiday, you will receive a notification.

This is just one example of how synchronization across modules works. Think about all the connections between timekeeping, planning and periodization. The efficiency and accuracy compared to spreadsheets is enormous.

All in all? You can automate 90 percent of PTO tracking while simplifying the administration process.

Turnkey PTO tracking

Some companies offer self-service solutions or turnkey solutions. Like the supplier-supported systems, PTO is synchronized with the employees' time registration and time planning. But the registration process is much faster. You can register online at any time. You don't have to deal with a customer service representative.

When researching key holiday tracking systems, make sure they are tailored to the number of employees. It may be a good idea to have an "employee aware" function that prevents incorrect punching. See if the templates work for you. Look for free trials and take a test drive. Compare features and ease of use.

Holiday tracking for remote workers

It can be difficult to know when remote workers are away from the office, but if they are not aware of it, it can affect productivity and overall morale. Make sure the tracking system you choose is remote-friendly and shows when they're out of the office so other team members can plan.

In conclusion, bid farewell to the complexities of PTO tracking spreadsheets and usher in a new era of efficiency with IceHrm. Simplify your absence management, enhance employee experience, and ensure accurate records with our comprehensive PTO tracking solutions.