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Masha Masha is a content developer at IceHrm. You can contact her at masha[at]

The Significance of Automated Leave Management System

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Worldwide studies have shown that the cost of absenteeism accounts for almost 35% of the labor costs in an organization. Despite this, it is surprising that most organizations do not even record their employees' absence, let alone manage it effectively.

Leave management is an important part of the organization's guidelines, simply because paid time off has a significant financial impact on the company's bottom line. Employers are therefore always on the lookout for paperless, efficient solutions that reduce or eliminate the margin of error in the calculation of leave benefits.

In most organizations, line managers and HR are responsible for absence management. However, management rarely has access to data for the entire organization that provides a complete picture of absenteeism. The reason is that the data is either not tracked, or if it is tracked, it is not automated, and the manual work leads to a high consumption of time and therefore ends up far down the top management's priority list.

Effective leave management can lead to significant cost reductions and productivity improvements. Implementation of an absence management system can help to:

  • Track all absences and all leave events
  • Administer the employees' leaves
  • Reduce the administrative burden
  • Enable well-founded decisions for the preparation of leave guidelines
  • Reduce costs

It is obvious that more organizations should have an automated leave management system in place by now, but that was easier said than done.

In the past, the costs of maintaining a leave management system outweighed the benefits it would provide. With no return on investment, it was reasonable for most organizations to overlook this and leave it to the HR department and line managers. With cloud hosting, however, the landscape has undergone a major change.

Cloud hosting has reduced the costs of implementing business applications by as much as 60%. And because of the reduced implementation time, results are visible within days instead of months earlier. The reduced costs and the reduced implementation time have led organizations to reconsider their strategy for tracking leave and absence data. However, finding the right leave management system for an organization can be difficult, as all organizations have different leave policies and extensive customization is required to get the right product, which is not easy in the SaaS model.

It is a fully customizable, cloud-based application that enables:

  • Apply, approve and track leaves
  • Self-service for employees
  • Self-service for managers
  • Manage leave quotas
  • Manage time off
  • Generate detailed, customized reports

Efficient leave management is crucial for organizational success. Implementing an automated system like IceHrm can streamline processes, reduce costs, and enhance overall productivity.

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