Why Integrate Leave Management Software with Time and Attendance

by | Jul 6, 2015

Why Integrate Leave Management Software with Time and Attendance

Leave management isn’t just about tracking how many Family and Medical Leave Act (FMLA) days or hours an employee has used. There are also pay processes involved. For instance, employees may be required to take paid time off (PTO) before going on unpaid leave. If you’re using different systems for tracking time and managing FMLA cases, that switch may be missed, leading to an overpayment. Managing it all within one solution helps optimize efficiencies and reduce costs.

Let’s explore three key benefits of integrating time and attendance with leave management software:

A Single Source of Accurate Balance Information

Managing employees’ time processes—such as hours worked—in conjunction with leave gives you immediate access to accurate balances at any given moment. This means that before an employee even requests time off, he or she can see how that request will impact existing and future leave balances. Say an employee wants to take vacation in August—which is certainly not an uncommon occurrence at this time of year—and he has accrued 32 hours of available leave. That’s not enough for a full five-day vacation (which, in his case, would be 40 hours). However, because the system shows his projected balance—and he’ll be gaining another 12 hours of accrued vacation time at the end of July—he can be confident about putting the request in for an August getaway. And what’s even more important: his manager can also see his projected balance at a glance. So there’s no confusion about how much time employees have available.

Access to precise work hour and absence data is also important to workforce utilization planning. When managers can see who’s going to be out, when, they’re better equipped to fill open slots without having to rely on unplanned overtime and other costly measures. And because all of this information is available within one system, your employees, managers, and HR professionals don’t have to go searching through multiple systems, spreadsheets, or stacks of paper to access accurate leave balances.

Greater Pay Accuracy

Another benefit to integrating leave management software with time and attendance is more accurate pay calculations. This is especially true for intermittent and reduced-schedule leaves. Say you have an employee who needs to take FMLA leave intermittently for migraine headaches. Managing time and leave within one solution allows HR—and the employee—to have true visibility into the number of hours used and remaining against the FMLA balance.

Managing time and attendance and leave within one solution also helps to reduce absence costs. Integrated reports give managers, HR, and executives insight into absence patterns, often accelerating the identification and deployment of best practices across the organization. For instance, if you have a high number of last-minute absences due to scheduling conflicts, you may choose to enable shift swapping, which can dramatically reduce unplanned absences and their impact on your overall labor costs.

Streamlined Compliance Processes

Integrating leave management software with time and attendance also allows you to automate all of your compliance processes within one solution. As a result there is only one system of record to turn to when you need to provide a documented audit trail to demonstrate compliance with any number of laws. And while the Fair Labor Standards Act (FLSA) and the FMLA are often top-of-mind, your organization is likely subject to hundreds of additional laws, from state-specific wage and hour regulations to a wide range of local leave laws—such as paid sick leave, which is gaining traction across a number of U.S. cities and states.

Working from one system of record also helps simplify compliance with internal policies, including carryover and pay out rules, as well as accrual expiration policies. This ensures that all of your organization’s time tracking and leave policies are followed consistently across the enterprise without burdening HR with time-consuming, manual tracking processes.

These are just a few of the cost and efficiency benefits of integrating leave management software with time and attendance. By connecting these often-disparate processes, your organization can achieve greater pay accuracy, simplify compliance, and enable more accurate leave tracking—among other critical business goals.

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