If you are reading this, you most probably are evaluating if it is worth automating your leave and absence management processes. HR Automation Tips has two separate articles, which if read together, will give you a pretty good head start in making your decision effectively.
Change behavior and corresponding increase in productivity
Insights on leave and attendance from an automated system and its intelligence will give you actionable items that can be used to change behavior and hence increase productivity. Accurate balances and application of consistent and transparent leave policies help in changing this behavior. The returns here can be calculated based on the increase in productivity obtained from employees. If done right, this benefit can be the largest and usually comes with implementing Employee Self Service based leave where the employee directly puts in the leave requests and the supervisors approve online.
Reduce the effort in accurately tracking and keeping records of leave
The manual effort involved in achieving what an automated system can do is very high. The costs of the effort if saved should be factored in to determine the return, and calculated based on saving in time of employees who process leave in all locations
Keeping leave records, balances and records are often a statutory requirement. Being compliant manually when there are a large number of employees is difficult, and the cost of non compliance should be considered in the return on investment calculations
Billing internal and external customers accurately
In cases where employee time is being billed to the customer whether its internal or external becomes accurate. 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.
Establish the trust of employees
Employees are key to the success of the company and giving them a transparent, accurate and easy to use services to take leave, check balances and modify leave requests will go a long way in many soft factors that are not quantifiable, but yet contributes to the return on investment.
Normally Leave Automation is best done along with the transitioning to an Integrated HRMS and hence should be combined with the ROI received in other areas of HR Automation. We recommend implementing an Employee Self Service, and cloud ready product like KServeHRMS to achieve the returns mentioned above, even faster.