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Why automate Attendance/Leave Management?

By December 2, 2013 No Comments
Why automate Attendance/Leave Management?

For any business enterprise, the cost of absenteeism may sometimes exceed the cost of wages and benefits paid for during the absence. This is due to the indirect costs of re-staffing, rescheduling, re-training, lost productivity and diminished moral. The direct cost of absence is often recorded and reported in annual surveys. But the indirect cost are rarely tracked or reported. Many organizations allocate 3% of their labor budget for absenteeism based on an average of eight working days missed per employee annually. Though the rate of absenteeism varies by industry, division and department, The Kronos Global Absence Survey Report 2013, reveals that such Indirect cost yet can exceed the direct costs by as much as 200 per cent. The survey also says that India ranks second with 62% of workers who admit calling in sick every year.

So if you are planning to automate your Attendance & Leave Management, a Human Resource Management System (HRMS) is what you should be considering. HRMS/HRIS have a proven track record of boosting employee productivity by cutting down on time & money lost due to manual HR processes. To be specific the 5 advantages gained by automating Attendance & Leave Management are:

  1. Behavioral change for increase in Productivity – When attendance and leave management is automated, employees have to deal with a system rather than liaise or charm a person. The late-comers, early goers and the perpetually sick are transformed in the face of transparent leave policies which mandatorily apply to all. Automation also saves time by implementing Employee Self Service as in such cases the employees may apply or approve leaves online, at their ease. Moreover, a majority of your HR’s working hours are saved from being wasted in solving redundant Leave queries & negotiations.
  2. Easy tracking & record keeping of leave data – Paper-based processes of attendance tracking inherently consume more time in manually finding out particulars. Automated systems churn out the results at the click of a button, minus the delay and the hassle of maintaining attendance registers or complex excel datasheets. It also provides you analytics to better strategize the future of your HR & Leave policies.
  3. Accurate billing of internal & external customers – When your employee’s productive hours are being billed to any external client or internal departments, such automation is a boon. With automation, one can bill accurately, on time and with good traceability of records thereby establishing trust with customers. The return here is calculated based on the avoidance of missed billing and earlier availability of working capital due to early billing and better relationships with customers.
  4. Compliance friendly – Leave details are a part of Employee Data management. And often it is a compliance requirement to record and maintain Employee Data. Thus employers with a humongous workforce, would save time, money & effort by automating such Employee Data Management, which in turn also makes them compliance friendly. Data reporting is also easier due to the customizable report features of HR Automation solutions.
  5. Earn Employee confidence & trust – By helping employees manage Leave Encashment and planning time-off with easy access to leave summary, employers also earn the trust & confidence of their employees. Transparent leave policies coupled with easy access goes a long way in positively motivating employees and managing attrition.

PeopleWorks is a cloud-based employee lifecycle management solution which manages all aspects of an employee’s life from hire to retire. With its integrated Leave Management feature helps both employers and employees are able to leverage all the five advantages mentioned above. By letting your HR staffs reduce time-spent on non-value adding jobs, promoting Employee Self Service and reducing your operational dependency on Paper, our solutions help you achieve growth uninterrupted.
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