Although leave and absenteeism are crucial aspects of payroll, most of the businesses do not provide them with the attention that they deserve. Often, these are overlooked even by large organisations as they’re busy running behind profits and growth of the organisation. Some Businesses do not even keep a track of their employees’ attendance which could land them into various troubles. It is only recently that many businesses have realized the importance of leave management and are progressing towards using workforce management software that helps them reduce archaic and error prone paper based processes which are both time consuming and tedious. If you haven’t kept an eye on inefficient leave management, here are some of the adverse side effects that it can have on your business.

What impact can inefficient leave management have on your business?

1) Shortage of human resource at the time of project delivery

Inefficient leave management often leads to situations where the managers have no data regarding the employee availability which can lead to delays in project completion. This uncertainty can land the entire business into trouble by delivering poor quality services to the clients, and thus leading to bad repute of the company in the long run if no action is taken.

2) The deterioration in employee performance

Additional burden will fall on employees who do not take much leave. They will have to carry the work load of employees who are constantly abusing the fact that leaves are not tracked. This will lead to loss in efficiency and lower employee morale.

3) Legal impact

Most of the countries have strict employee related laws that governs that minimum number of leaves an employee may be given and also outline the reports that need to be maintained incase scrutiny is required. Not abiding by these rules can often lead to huge penalties.

4) De-motivation among employees due to mismanaged leave systems

Employees who are denied leaves when it’s most needed to them simply because the organisation had provided them excessive leaves when it wasn’t mandatory leads to low morale among employees. It further leads to disappointment and de-motivation which will hamper the quality of their performance.

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