Leave Management in Simplified HRIS

More than 61% of companies in the United Kingdom that have more than 50 Employees are still using paper based HR processes.
A part of this legacy paper based HR process is Leave Management. With paper the processes are labor intensive a costs money.

According to a leading global auditing firm, the average cost to process a single piece of paper is $20 in labor costs. If that piece of paper is misplaced, it costs the company $120 in labor to search for the piece of paper. If the paper is lost and need to be recreated the cost goes up to $220 in labor.

The point is that it cost money to process paper, from the costs to procure the paper, print on the paper, and the handling of paper. The over all processing of Paper is expensive and mostly a hidden cost because it is not directly related to HR, but rather a overall company expense.

Keeping track of the leave requests can become a problem, the larger the company. A client of HRSimplified has 120 Employees, and processes almost 1600 leave requests per year. These leave requests are processed by 2 managers and takes around 20 min to complete. This includes checking the previous leave balance, making sure the correct leave count is deducted, excluding weekends and public holidays. Also making sure the new leave balance is updated correctly on the spreadsheet that tracts the leave allocation.

If we calculate the costs in labor for the leave request, we find the following: 1,600 x 20 minutes = 32,000 minutes of Leave processing per year. This equates to 533 hours of leave processing, or 66 days of work per year.  That is 3 months of management time wasted on processing leave for a company of 120 employees.

With 1600 leave applications to process per year, the chances of making a mistake or loosing a leave form is very high.  Based on market research an average of 7.5 percent of paper documents are lost completely and of the remaining files, 3 percent are misfiled.  This accounts for 120 lost leave requests. This would cost the company 120 X $220 = $26,400.00 to have the leave requests recreated. (If we look at the cost to recreate a paper form)

By implementing a online Paper-less HR solution, it needs to include an Employee Self Service option, all the manual labor needed to process paper would be removed. The risk of loosing or misplacing paperwork would be reduced and eliminated.

With Employee Self Service, the Employee can apply for leave from any location, as long as he or she has internet access and a mobile device. Once the leave application is submitted it is immediately sent to the approval manager. No more lost paper based Leave forms, that take weeks to be mailed to another branch or across the country.

With automatic deduction of leave balances once approved the manager does not need to manually reduce the employees leave balance. No more mistakes, and not more wasting time finding the Leave Balance sheet. Stop wasting 20 min to process a leave form, where a instant approval process takes less than 1 min to process the entire leave application.  Managing the leave balances in real time.

With the 1600 leave applications that was being processed per year, and taking 3 months of 533 hours of management time. the client has implemented the online Leave management process in HRSimplified, and reduce the time spent from 20min per request to less than 1 min.

This is a saving of 19min per leave request, or 1600 X 19min = 30,400 minutes per year, a total of 506 hours or 63 days.  This means all leave processing for the year has been completed in less than 3 days.  A saving of 95.4% in labor from a Approval Manager.