Employee engagement is the key to success for most organizations. Thus many companies today take every step possible to ensure that their employees are highly engaged in the workplace. One such process that has given the management is a lot of problems is the leave management process. Employees expect a hassle-free leave application process and receiving its approval on time makes a significant impact when it comes to satisfaction.

But traditional systems face a lot of hassles as there various delays in acknowledging the application followed by its approval. At times these applications are rejected without any particular reason which further adds to the grievances. The challenges of not having a proper leave management system in place are as follows:

  • Reporting managers are not able to manage their team’s leaves or make informed decisions before approving them
  • Errors in documenting leaves leading to incorrect payroll process
  • Employees are not aware of their leave balance and hence hesitate before taking leaves

All of these problems have some or the other cost associated with it which the company has to then bear. This is exactly why employers need to track the eligibility, time taken, balances and expected return dates etc. and ensure that there is compliance to the leave policies of the organization. The two most important components of leave management are:

  • Having a leave policy
  • Applying that policy through uniform procedures and practices.

Here automated leave management systems need to come into the picture and take of all these hassles. Otherwise it’s very easy to lose track of your employee’s time off, which in turn negatively impacts their productivity. All this can ultimately create a hindrance in business success.  Effective leave management systems can greatly improve employee morale, reduce workload on the other employees and save money in the long term.

Challenges in leave Management system

Legal problems

Every state has its own legal rules for employee leaves that can give nightmares to any employer who fails to comply. Failure to meet these compliances can lead to serious complications. Companies can be heavily penalized by government authorities and lose credibility in the market.

Insufficient resources:

Leave management systems are highly beneficial when it comes to tracking the availability of human resources. This information is essential for managers when making decisions related to project delivery schedules.

Financial liability

According to the laws employees are entitled to paid leaves and privileged leaves, which when accumulated can increase the financial liability of the company. Some companies have policies that make it compulsory for them to reimburse the pay for unavailed leaves at the time of separation or as and when required by employee. It helps the HR department keep track of this and regularly report it to the management.

Impact on employee performance

There are employees who take too many leaves and those who do not take enough leaves. It can have a huge impact on their performance either way. This follows from the fact that work-life balance is crucial to one’s performance. Management might have to step in where there is a gap. Constructive steps like coaching can be taken in this direction.


Inevitably employees are bound to take leaves at one point or the other, so the management needs to figure out how to accommodate these requests objectively. Usually the most common ways of handling absence of some employees is by either having their teammates take up some of their load or getting them to finish it up well in advance of their leaves.