Use of Artificial Intelligence in Leave Management System

Do you often feel overwhelmed while balancing leave management with other business activities? Well! Keeping the right leave management system policies in place can make this process easier and more efficient. It is the key to making your employees happy and conducting your business effectively.?

We at HR Matters have created a complete employee leave management system guide so that you can focus on your business activities and leave the rest to HR automation systems.

What is a Leave Management System?

An online staff leaves management system is software that manages the request, approval, and tracking of leaves and provides payroll input. It is an automated version of leave monitoring and management for ensuring hassle-free operations even in the human resource manager’s absence.?

The use of conventional tools such as emails, paper documents, and spreadsheets has become redundant, especially with Artificial Intelligence (AI) tools. These tools decrease productivity and efficiency, so HR managers use AI-based leave management systems to minimize employee dissatisfaction, legal complications, or errors in payroll processing.?

Various Types of Leave Requests?

There are a few kinds of leave requests depending on the HR regulations? implemented by the state and federal authorities:

• Maternity and Paternity leave?
• Annual leave?
• Medical leave?
• Leaves allocated for spouse’s or child’s death.?
• Leaves allocated for performing Hajj duties after two years of service.?
• Public Holidays?

These leaves are considered under the category of:

• Paid leave: Holidays such as Saudi National day are eligible for paid leave.
• Unpaid leave: Medical leaves are paid for up to 1 month. About 75% salary would be paid for the next 2 months. It shall be unpaid from the 4th month onwards.?
• Mandatory leave: Maternity and paternity leaves come under this category.?
• Voluntary leave: The employees can take voluntary leaves from work due to genuine personal reasons without leaving their permanent working status.

For more information: How HRM Software Makes it Easier to Extract Data and Create Reports of Employees in 2023?

How Automation in the Leave Management System Works??

The consolidated leave administration platform through HR chatbots permits the employees to enquire about their leave balance and approvals within a few seconds. They can even select the category, mention the reasons, upload the records, and add notes wherever it is necessary.?

The system notifies them regarding any changes or modifications. The platform also notifies employees about the accumulated leaves for a particular period and presents them concisely when demanded. The HR managers can track the leave status and release the payroll accordingly.?

Challenges in Manual Leave Management System?

Some of the challenges confronted by HR Managers in traditional leave management systems are-

Lack of clarity about the yearly leave balance and changes in the leave policy: Generally, a conventional leave management system leaves up to 100 queries per week, thereby wasting the HR manager’s time. The employees must wait to get their leaves granted or updates regarding their balance leaves. To add to the issue, they are not communicated properly about their balance leaves, leading to frustration and disgust.

Payroll issues due to unrecorded transactions: Miscalculations while computing leaves balance can often lead to substantial financial costs in transactions related to attendance and leave. Around 25% of workers say they would start searching for new jobs after experiencing payroll errors. Around half of Gen Z employees said they would never tolerate payroll errors.??

Inability to manage the employee leaves and their approval: The managers cannot analyze the leave request patterns of employees who take benefit of loopholes in the leave management process. Consequently, HR in the leave management system cannot make informed decision-making before leave approval.?

For more information: What is Attendance Software for Employee Management and How Does it Work?

Essential Components of the Leave Administration System

A leave management software must include? the following elements:

• Fields related to leave policy, type, and holiday list provide the flexibility to customize the platform?
• Timesheet and Attendance Management for easy tracking of employees’ productivity?
• Integrated payroll management is essential for HR managers so that employees can receive accurate and timely payments.
• All-in-one dashboard enabling the employees to view their accumulated leaves and the company’s roasters. All the employees, including the HR and line managers, should be able to verify this data.
• Analytics and reports simplify the records showing approval, denial, and availability of leaves for the employees and the organization as a whole.

Advantages of Leave Management Automation?

?Enhances the transparency of leave management: AI in leave management systems ?can enhance its openness by providing a comprehensive report relating to:

• Leave policies for special conditions.
• Leave requests and their updated status.?
• Employees on leave and when they would rejoin.
• Reports on trends related to leaving usage.?

Thus, automated capturing and updating of leave-related requests can help the organization in the:

• Improving? coordination? between managers, employees, and the HR department
• Avoiding? confusion and misunderstandings regarding leave policies?
• Preventing project postpones due to absenteeism and efficient allocation of time and resources.?

Minimization of payroll errors:? HRMS Leave management system can help in minimizing payroll errors by:

• Keeping track of when the employees have taken leave and comparing it against the leave approval.
• Ensure the accurate documentation of payroll and leave days.?
• Ensures the accurate notification of leave entitlements and prevents absenteeism.?

Enhancing employee experience: AI for leave management systems can enhance employee satisfaction for HRM and employees by :?

• Reduction of administrative tasks in the HR department that helps them to focus on more productive tasks.?
• Automation in leave management ensures the prompt processing of leave requests to avoid delays and employee frustration.?

Paperless Processes: AI helps prevent repetitive and tedious tasks by reducing paperwork. Moreover, using paper in leave administration proves harmful to the environment. Implementing an automated employee leave tracker can help the employees request and get approval in a few clicks.

?Adherence to HR laws related to leave requirements and collective bargaining agreements: Workforce management requires tracking stipulations under the current HR laws and collective bargaining agreements. You can manage the employee leaves by leave administration systems whether the employees work from multiple locations, hourly or salaried, working under a cooperative agreement, or unionized.?

Automated leave management systems by HRmatters allow HR managers to retrieve relevant HR data and prepare accurate reports so that there is no room for errors. We also provide 14 days trial before you ensure it’s the appropriate service for your organization. Well! there are enough reasons to sign up and avail free demo now!?