The penalty for failing to implement a sound leave management system

May 3, 2022

With home and now hybrid working part of the new reality, increased absence due to the endemic Covid-19 variants, and the threat of industrial action targeted at disrupting commuters, having a good, trustworthy, and intuitive leave management system has never been so important.

Failure to implement such a plan can have unfortunate consequences on your administrative overhead, staff morale and productivity, and ultimately your bottom line. There might also be legal issues. With all that in mind, let’s look at some of the problems you could face.

Increased costs

Inefficiently executed management tasks result in increased costs. For example, using standard spreadsheet tools or other outdated systems to keep track of leave will inevitably result in errors and wasted time. In addition, it is often difficult for line managers to track who is on leave and staff availability, especially when the HR department doesn’t have instant access to relevant and accurate information.

Failing to plan to ensure that adequate staff is available to meet critical deadlines can result in severe financial penalties, customer dissatisfaction, and lost business opportunities. It can also lead to increased stress levels and reduced productivity.

Reduced employee engagement and morale

Inaccurate holiday tracking can have disproportionate effects and employee engagement and morale. In addition, manual systems are inevitably error-prone and can lead to misunderstandings between staff and their line managers. In such situations, leave requests could be denied unjustifiably. Individuals might lose track of the leave they have due, and disputes might arise that require HR intervention, all of which are time-consuming, costly, and demotivational.

These problems could all be avoided by the application of a staff holiday planner that, at the very least, would ensure that everybody has access to up-to-date, accurate information.

Excess overtime and employee burnout

As we have mentioned, poor leave management can result in insufficient staff during critical periods. The potential implications are far further reaching than might meet the eye. Inevitably remaining staff will be required to work longer hours to achieve deadlines. Extra overtime probably leads to increased overheads, staff who are already working hard suddenly faced with being expected to work even harder could find it difficult to cope. Such pressures could lead to increased levels of stress and anxiety.

Ultimately vulnerable individuals could be facing burnout with long-term consequences to the employee and the business. You should also consider the possibility that by placing excessive pressure on your staff, you open yourself up to legal issues such as being taken to a tribunal by an employee with constructive dismissal claims.

Increased staff turnover

If the business cannot implement accurate holiday tracking using an up-to-date staff holiday planner, then the implication is that it cares little for the welfare of its staff. Undervaluing your employees is a sure-fire way to anger them, which could lead them to question why they work for you. Such discontent can spread quickly through a workforce, resulting in increased discontent and staff turnover.

Increased staff turnover might be the severest penalty of all those we have mentioned. It can impact every aspect of the business, including the effectiveness of your workforce, poor customer satisfaction, and high recruitment and training costs. Often it is the best talent that can readily find opportunities elsewhere; thus, you could be losing the most talented members of your team.

A stitch in time saves nine

A stitch in time saves nine; in other words, taking early action can avoid subsequent catastrophe. In addition, by implementing a state-of-the-art leave management system, you can avoid a range of issues with their resultant penalties.

LeaveWizard might be the perfect solution. It is easy to implement, readily tailored to your specific needs and environment, and accessible remotely to all your staff.