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Why SMBs Need a Stellar Leave Management System

Quick look: Leave management systems empower small- and medium-sized businesses (SMBs) to support their employees’ absence requests while maintaining the momentum behind their operational productivity. Keep reading to understand the purpose of these systems and how ExtensisHR’s LOACloud can benefit SMBs’ leave policies.
When an unexpected or important personal event occurs, leaves of absence (LOAs) help employees address these matters as needed. Implementing and adhering to a formal strategy can transform justified leave breaks into a well-organized system, preventing disorganization and repeated absenteeism. Small- to medium-sized businesses (SMBs) can accommodate a thorough LOA process with a well-established leave management system. In this blog, learn what a leave management system is and how it benefits SMBs.

What is a leave management system?

A leave management system allows employers to receive, approve, and track employee leave requests. The types of leave recognized by these systems include, but are not limited to:

  • Jury Duty
  • Parental Leave
  • Medical or Sick Leave
  • Bereavement Leave
  • Disability Leave
  • Vacation Leave

The software behind a leave management system is intended to be a seamless and modern approach to business leave requests. Though the market is growing, the most sought-after systems offer specific features. Cloud-based technology is one such feature, making the system more accessible and enhancing data collection capabilities across authorized devices. The desirability of this feature among small businesses isn’t surprising since 51% of IT spending among businesses is expected to switch from traditional technology to cloud-based tech in 2025.

Other preferred assets of a leave management system include automated workflows and notifications, non-invasive integration, and customizable functions to ensure an SMB’s leave capabilities and policies are considered.

The benefits of leave management systems

SMBs are adept at independently kickstarting vital operations within their company. However, technology can make improving current processes’ everyday efficiency easier. Here are the main benefits SMBs can unlock by adopting a leave management system into their HR strategy.

Stay compliant: Certain LOAs are protected under federal law. For example, the Family and Medical Leave Act (FMLA)* enables certain employees to receive up to 12 weeks of unpaid and job-protected leave each year for reasons such as childbirth, adoption, caring for an immediate family member, and personal medical leave for a severe health condition.

Leave management systems allow businesses to ensure that any approved leave matches legally required timeframes. They also produce an accessible record of LOA activities that help verify a company’s compliance with leave regulations.

*Some states and local jurisdictions maintain their own regulations regarding paid/unpaid family leave and/or paid/unpaid sick and safe leave. It’s important to consult the specific laws applicable to your area for accurate information.

Cut back on paperwork: What’s worse than filling out paperwork? Having to redo it when crucial information gets disorganized or lost. Leave management systems spare SMBs from this stress by digitizing request forms and ensuring all shared information is properly stored and sorted within the platform. Additionally, less manual administrative work is needed to achieve the same leave request process.

Leverage real-time tracking and reporting: Business leaders often manage multiple workflows to enhance a company’s efficiency. When handling a long list of responsibilities, forgetting to follow up with a leave request can be an honest mistake. Fortunately, leave management systems improve this procedure with real-time tracking and reporting. These systems often include automated workflows, sending decision-makers custom notifications to alert them when a request is submitted and if other steps are needed to approve that request formally. SMB leaders can also pull and review reports on different teams’ LOA activities.

Support a positive company culture: As an SMB, developing a solid company culture is vital to achieving business success. One study states companies can achieve a 25% growth in their workforce over a three-year period when they maintain a strong company culture. Businesses can also earn a 4x increase in revenue growth.

Promoting work-life balance is a significant factor in a company’s culture. Since employees rely on leave to address personal obligations or wellness, an overcomplicated request process can be a work-life balance red flag. Utilizing a leave management system adds efficiency and transparency to this employee operation, which can lift workers’ enthusiasm and trust in their SMBs.

Boost communication: Business productivity goes smoother when everyone is on the same page. Department and team managers can better assign workloads and responsibilities when they know who is on call and is currently out of office. In the same light, employees want to be sure their time-off requests are seen and the number of leave days they have access to is up to date.

Leave management systems keep crossover lines of communication open by offering enhanced views on absence requests and leave accrual details. This helps leadership foresee workflow adjustments and employees understand what types of leave are available. Communication between the SMB managers and the system’s professionals can also be streamlined in case a platform issue or inquiry arises.

ExtensisHR’s LOACloud improves leave management

With ExtensisHR, adopting a fine-tuned leave management system becomes less intimidating. As a professional employer organization (PEO), we connect our SMB partners with highly trained experts who help build and execute custom LOA strategies that match their individual needs. Our latest web-based platform, LOACloud, further supports these strategies.

Available through our HRCloud solution, this leave management system improves SMBs ability to track, approve, and review absences across their company. LOACloud’s capabilities are powered by our trusted partner, TELUS Health, a global organization that specializes in employee leave case management services.

SMB partners can expect the following advantages and features while using the online LOACloud portal:

  • 24/7 system accessibility to submit and manage absence requests at any time from any secure device
  • Enhanced tracking and reporting that show the real-time progression of LOA submissions and clear overviews of current, past, and pre-scheduled absences
  • Streamlined and paperless procedures that make submitting leave requests faster and more straightforward
  • Simplified documentation access for general leave forms, intermittent leave info, return-to-work details, and other leave procedures observed by the SMB
  • Integrated direct communication supported through a built-in messaging portal that connects our partners to ExtensisHR’s LOA team
  • Personalized guidance and support from your ExtensisHR account team, including your dedicated HR Manager, to help you navigate LOA best practices, compliance, and plans

ExtensisHR’s assistance goes beyond LOA strategies. SMBs can work with our certified PEO to unlock better functionality across recruiting, benefits, risk management, compliance, and other HR operations.

Questions about your current leave management strategy? Contact our LOA professionals today to discover how an organized leave process empowers team productivity and performance.

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