Accrual Calculations: How Can Businesses Manage Annual Leaves Efficiently?

During the hectic work year, it is very common that employees take time off to recuperate, travel, or spend time with loved ones. Annual leave is something that every HR admin must calculate diligently and keep strict records of so that there is no discrepancy. Taking a few weeks off in a year helps in reducing the stress levels of the employee, at the same time increasing their motivation to work in a company. There are also several health benefits, and an employee will be able to work at their best throughout the rest of the year when leave benefits are provided by the firm.

The yearly leave of an employee is something that is hard to keep track of since HR admins know that there are certain leave requests which are complicated. There are different leaves that a person may apply for including stress, parental, and sick leave, and therefore, consolidating them is a daunting task for the HR admin. Automated cloud-based HR systems in Dubai make the work of an admin easy by helping them tabulate the amount of leave taken by an employee.

Annual Leave Defined

The annual leave is time off given to the employee by an employer during the timespan of a year, and it is a paid leave of absence that may or may not be carried on to the next year. The time that an employee takes off for leave is usually calculated at the same rate as their normal daily wages. In some companies, part-time workers are given an amount in compensation for their annual leave since most of them do not avail of the leave. The amount of leave that a company grants its employees depends on the labor laws of that particular country. However, admins have their tasks simplified when HR software is kept in place, as it can be calibrated to allow for the right amount of paid leave depending on the hierarchy of the employee.

Managing & Reporting Annual Leave

There used to be a time not long ago when companies used to calculate their employee’s leave requests on an excel sheet which was a tiresome procedure. It is absolutely necessary to maintain a neat and defined policy for employees when it comes to their annual leave. The HR admins must openly communicate with the new recruits on their entitlement for leave during the work year. An online cloud-based tool or application must be put in place so that every leave taken by each employee is accounted for and recorded so that there is no confusion in the future. When an employee comes to the admin with the request for a leave, the HR admin has to decide whether it is a valid request or not.

HR should also take into consideration whether enough alternate resources are present at the time of this leave for uninterrupted work to continue at the organization. The request for a leave is most often mutually discussed by the employer and staff, at the end of which leave may be sanctioned. Along with this, HR must make sure that too many workers are not absent at the same time, and these are the points where an automated HR software in Dubai can be of help.

Annual Leave Balance

There are many situations when an employee does not choose to utilize their annual leave during the year. This often leads to the question of whether the leave can be transferred to the following year. Employees do not take their leave because they like to work a lot, or it might be due to the fact that the company is understaffed. Another reason an employee chooses to work through the year is the presence of tight deadlines that cannot be overlooked.

Company policy dictates whether the leave balance is moved to the next year, but it is possible for HR to outline a clear holiday clause that the employees can refer online on the cloud-based HR platform. It is natural that the employees who do not take their annual vacation days will be more stressed, and they may also underperform and show a reduction in productivity. The business will be affected as this can lead to a high staff turnover which is not acceptable in any organization.

Other Leaves

For an HR admin, there are many job responsibilities, and managing the leaves of the company’s employees is a major duty. The HR associate must know the employees just like a teacher knows his/her students and be ready to assist them with their requests. There are times when an employee will be under an excessive amount of stress, and during this time, they may request the admin to grant them absence which can be deducted from the annual leave.

Following the labor law in most countries, employees are allotted the possibility of taking up to 10 days as paid leave through the year. Along with stress leaves, other leaves that companies often allow as paid absence include sick leaves provided there is a doctor’s note, marriage leave, and parental leave. Businesses around the world are opting for HR software that efficiently helps to manage the annual leave of their employees. HR systems in Dubai have evolved rapidly in the past years, and now employees and HR admins can leverage the power of cloud computing to simplify the process of organizing annual leave.

Emirates HR is the trusted provider of cloud-based HR software in the UAE, and leave management becomes extremely easy with our application. With the options of adding unpaid leave as well along with other leave requests, accrual calculation becomes a simple task.