How an Employee Vacation Tracker Will Save Your Company Time, Money, and Heartache
Improper vacation tracking…
It’s an all too common occurrence in the small business world, and it can cause serious long-term issues if not appropriately handled (more on this in a second).
It’s true that most young businesses need to constantly be mindful of their current budget and available cash flow. And it’s also true that both are generally limited in the beginning.
For that reason, many small businesses place more of a focus (and budget) on payroll, marketing, advertising, and more.
And consequently, something as simple as employee vacation tracking is often given the bare minimum attention and budget when it’s actually smarter to give it more attention than other budget-depleting areas.
In this article, we’re going to show you why you should highly consider using an employee vacation tracker to save your company both hundreds (possibly thousands) of dollars each year in costs and potential heartache.
We’ll start with covering the reasons why you need to mindfully track employee vacation followed by the different ways to track it.
Why Your Company Needs to Track Employee Vacation More Efficiently
Three of the most common and detrimental issues caused by inefficient employee vacation and attendance tracking are:
- Paying unnecessary money to employees. It’s common for employees to acquire a negative vacation balance when vacation accrual is not properly calculated or tracked. That negative balance means they were paid for time off that they never acquired or earned.
- Loss of production and disrupted workflow. Improper tracking can cause managers to make more errors when scheduling time off for their employees. This leads to issues with production and operational flow within the company and can hurt profits.
- Additional fees and potential legal action. Some jurisdictions have strict guidelines that must be followed in regards to tracking and reporting vacation time. A failure to do so can potentially lead to fines, additional fees, and possible legal action.
All three of the above issues can be avoided or, at worst, greatly reduced by mindfully tracking the vacation time of your employees using one of the three methods below.
3 Ways To More Efficiently Track Employee Vacation Time
There are three popular methods small businesses use to keep better track of their employee’s paid time off:
Method #1: Use a Spreadsheet
Using spreadsheets to track employee vacation time can be both the most inexpensive and tedious/time-consuming solution.
If you have access to spreadsheet software (like Excel or Google Spreadsheets) and know how to write formulas within the program (or know someone who can), then you have all you need to start tracking your employee’s time more efficiently.
However, there tends to be a steeper learning curve with spreadsheets. You must know how to write the formulas to calculate entries in the spreadsheet in addition to knowing the actual calculations needed for your desired vacation rate.
Even if you’re on an extremely tight budget, this may still not be the best option for you as your employees will be faced with duplicate data entry, having to manually compile reports and a trail of paperwork from managers for employee leave request approvals. In addition, doing this work manually opens the door to human error in data entry, which can cost your company money.
Method #2: Payroll and/or HR Software
If you have an existing, stand-alone Human Resource Records Management System or Payroll software, you can keep a clear file of employee accrual rates, position information etc. However, as with the spreadsheet, you will end up doing duplicate data entry when it comes to recording and tracking employee time off.
Method #3: Employee Vacation Tracker Software
This last method gives you the best of both worlds in regards to spreadsheet tracking and payroll/HR software.
Employee vacation and attendance tracking software is a stand-alone system that’s used exclusively for tracking your employee’s attendance. It gives you the tracking power of payroll software but with even more added benefits specific to managing employee absences.
This method is our specialty, as our Softtime Online software is a web-based attendance tracker. And we sincerely believe it’s the best value for small businesses.
Our software allows your company to:
- Instantly spot discrepancies between employees’ paid time off.
- Let your employees request time off in a matter of seconds.
- Automate your accrual calculations.
- Start tracking without any professional training
- Print detailed attendance reports for just about any situation.
- Approve or deny leave requests from your email.
- And more…
To state it simply…
If you want to minimize your attendance-based costs each year (and potentially save thousands in the process), substantially increase company production and operational flow, and avoid potential legal issues and accompanying fees…
Then we invite you to contact us today to learn more about our software and how it will benefit your business and save you money.
We look forward to talking with you!