When five employees from the same shift request leave on the same day without prior notice, a specific process generally occurs within the company.
The production process would be delayed because of the multiple employee absences resulting in disturbance to production planning; leaders may need to find coverage for the employees who have taken leave or work extra hours personally to cover those absences at the cost of productivity for other tasks, and it may result in payroll errors.
There’s a significant amount of productivity and potential for non-compliance involved in manufacturing, so it is extremely important to have a leave management system specifically designed for the manufacturing industry.
The modern manufacturing industry is converting from manually tracking employee absences and submitting approval requests in spreadsheets to adopting integrated HR software, complete attendance tracking solutions, and payroll processing.
This blog contains a brief overview of leave management systems, the reasons why manufacturing companies require such systems, the best systems available to manufacturers, and how to start using one. Along with why Savvy HRMS makes a good choice for your business.
What Is a Leave Management System?
The Leave Management System is the process that allows employers to manage employee leave requests digitally. It offers an alternative to traditional methods of managing employee absence by removing the need for manual tracking through spreadsheets and paper-based systems, thereby providing an automated solution that makes managing employee leave easier and more efficient.
Leave Management System benefits organizations with production methods, such as manufacturing, where employees work different shifts, require overtime or temporary employees, or are subject to a variety of statutory requirements. The implementation of an automated Leave Management System ensures that any employee who is absent for any reason (such as illness, personal emergency, or vacation) does not affect production scheduling, timekeeping, or payroll.
Core Functions of a Leave Management System
- The system automates the process of applying for and approving a leave of absence.
- It tracks different categories of leave, such as casual, sick, earned and unpaid.
- It smoothly integrates with attendance management systems.
- Leaves’ data are adjusted with payroll software.
- It helps to ensure that statutory regulations and labour laws are met.
- Real-time leave balances are available.
- Organisations can easily generate a report that would stand up to an audit.
Why Is a Leave Management System Important for the Manufacturing Industry?
Manufacturing Industries have their own employee issues. These include employee scheduling (when employees work), seasonal activity, where employees work, and rules complying with laws. So, why is it necessary to have a leave management system? Here are 8 reasons:
1. Shift Scheduling for Employees
A leave management system can help prevent the possibility of employees having the same shift off at the same time. By doing this, you keep your production schedule on track and ensure that you are allocating the right number of employees to each shift.
2. Leave and attendance record integrity
The correct leave record will always match the employee’s attendance record because of the integration between leave management and attendance management systems.
3. Eliminates payroll errors
By syncing correct leave data with payroll, overpayment and underpayment errors are eliminated.
4. Compliance with labor laws
A leave management system keeps you compliant with all federal statutes and factory acts, as well as all state regulations. In addition, by having a leave management system, you will have less risk of legal problems and audits.
5. Supervisor access to employee availability
A leave management system will give your leaders real-time access to the availability of employees across all shifts, departments, and locations.
6. Quick approvals for shop floor employees
Because staff have access to their own mobile phones and kiosks for applying for leave, they can apply for leave directly from their mobile device without the delay of paperwork.
7. Constant operations
Leave management systems help HR to ensure that they know when to plan for replacement employees, overtime, or temporary labor needs, therefore, avoiding production downtime.
8. analytics for workforce planning
This is where a company can analyze employee leave patterns, understand absenteeism trends, and understand where they need to adjust their workforce to better meet production demand.
Top Leave Management Systems for the Manufacturing Industry
1. Savvy HRMS
Savvy HRMS gives factories and manufacturing companies an easy way to manage employee attendance, leave, payroll, and general administration. As this software is based on the laws and rules which govern the operation of factories in India, its functionality was developed specifically for use within the manufacturing industry and relates directly to shift-based operations.
Savvy HRMS Has the Following Features:
- Leave rules based on shifts: Employees can be set to receive various types of leave based on their shift patterns and by department or location.
- Attendance integration: Use biometric and mobile attendance tracking to ensure employees’ attendance records are properly integrated with their leave records.
- Statutory Compliance Engine: As soon as your employee’s records are entered, the software applies all of the appropriate laws, including Indian labor law, factory acts, and statutory leave rules, for each state within India.
- Payroll-ready leave processing: When an employee leaves, or is encashed, the amount is included in payroll calculations at the time of processing.
- Mobile access for shop-floor workers: Employees can apply for leave through mobile devices, allowing them greater independence from HR.
- Approval workflows: All requests for leave require multiple levels of approval, including a leader, HR, and plant head.
- Contract and temporary workforces: Savvy HRMS manages employee leave for permanent, temporary, or seasonal employees.
- Advanced Reporting and Dashboards: Companies can view absenteeism, leave trends, and compliance information in real time.
- Performance management integration: Performance management software integrates with leave and attendance data.
Pricing
Starts from ₹60 – ₹120 per employee/month (custom pricing based on employee size and modules).
Best For
Small to large manufacturing companies in India are looking for an end-to-end HRMS with strong compliance, payroll, and employee control.
2. Deel
Deel is an HR system designed for global and remote offices, allowing users to manage their time-off requests in addition to managing their international payment and employment practices.
Key features of using Deel:
- Manage Your Own Leave Policy: Every country has different leave requirements.
- Apply for Leave via the Internet: Employees can apply and track their time-off on the internet.
- Payroll Data Integrated: All leave requests are added to your overall payroll for your employees.
- Compliance with Local Labor Laws: Assures compliance with local laws.
- Access from any device: The cloud provides the ability to access information from anywhere in the world.
Pricing
Starts around ₹4,000 – ₹5,000 per employee/month.
Best For
Manufacturers with international or remote corporate teams.
3. Quandle
Quandle is an HR Analytics Software that provides Workforce Analytics and HR Insights. It also introduces leave tracking as an opportunity to include leave for a broader range of people.
Quandle’s features include:
- Leave Analysis: Identify absenteeism patterns.
- Custom Leave Policies: Custom approvals and configurable rules.
- Dashboard Reporting: Visual insights into your workforce.
- Integration API: Connect to other HR tools.
- Cloud Deployment: Flexible to scale up or scale down.
Pricing
Custom pricing (generally ₹150 plus per employee/month).
Best For
Mid-sized manufacturing industries prioritise workforce analytics over deep payroll integration.
4. Keka HR
Keka HR is a widely used HR software developed in India, including leave management, attendance management, payroll management, and basic performance management tools.
Features of using Keka HR
- Leave Policies are automated with support for the leave structure relevant in India.
- The Attendance Management System contains both mobile and biometric attendance features.
- Payroll Processing involves the integration of salary with what is needed to be compliant.
- Employees are able to access their own information from any location through the web and smartphones.
- Reporting tools are set up for standard HR reporting purposes.
Pricing
Starts from ₹1,999 per month for small teams.
Best For
Small to mid-sized organizations with simpler manufacturing operations.
5. Pocket HRMS
Pocket HRMS is a Cloud HRMS that provides Leave and Attendance, Payroll and other Compliance tools for use with Indian businesses.
Key Features:
- Leave & Attendance Synchronisation: Modules are updated in real-time.
- Payroll Automation: Your Salary will be calculated correctly.
- Statutory Compliance: Support for PF / ESI / Labor Law compliance.
- Mobile App: Easy access to employee records for your employees.
- HR Analytics: Basic dashboards and reports.
Pricing
Starts from ₹149 per employee/month.
Best For
Growing manufacturing industries that are converting from manual HR processes to automated ones.
6. BambooHR
BambooHR is a global HR platform that emphasises employee experience and offers functionality for leave requests and tracking.
Main Functions
- Time-Off Tracking: The ability to request and approve time off in a straightforward manner.
- Employee Records: A central location for an organization to store all employee data (HR).
- Reporting Tools: Standardized analytics tools found within the HR space.
- Mobile Use: The ability to use a cloud-based system.
- Integrations: Integration capabilities to third-party payroll applications.
Pricing
Custom pricing (generally ₹500 – ₹700 per employee/month).
Best For
Corporate or office-based teams, not intensive manufacturing setups.
How to Implement a Leave Management System in the Manufacturing Industry?
1. HR Software Evaluation & Setup
Evaluate Your Organization’s Structure and determine how the structure and organization of your company will affect you when choosing an HR system for your project
2. Implement Standardized Leave Policies
Establish policies outlining categories and types of leave, accrual rules, maximums, and approval routing that comply with state and federal laws, provide consistency across departments, and encourage fairness in the use and approval of leave.
3. Integrate Attendance Systems
Integrate attendance management systems using biometric technology and mobile devices to provide accurate, real-time data, minimise administrative overhead and ensure accurate operation of attendance and leave records.
4. Integrate Payroll Systems
Integrate leave data approved in the attendance system with the payroll system to reflect approved leave in the payroll system without needing to enter the data, affecting calculations and other aspects of payroll (such as salary calculations, overtime pay, and withholding).
5. Provide Supervisor and Employee Training
Conduct training for supervisors and employees to facilitate a successful transition from current practices to new practices associated with HR systems.
6. Make Leave Requests Mobile Friendly
Set up web-based applications for secure submission of leave requests and allow employees who do not have access to desktop computers to track their leave approvals.
7. Monitor and Optimize Your Use of HR Software
Monitor and optimize your HR systems to identify trends and patterns of absenteeism and optimal staffing levels needed for your production goals
8. Audit For Compliance
Conduct periodic audits of your state and federal mandated reporting of employee leave balances and prepare for audits and inspections.
Why Savvy HRMS Is the Best Choice?
Savvy HRMS was built with specifically manufacturing in mind, as opposed to generic office environments. By integrating leave management, attendance management system, payroll system and performance management systems together, manufacturing companies have one source of truth, ensuring continuity of operations in the manufacturing company.
Savvy HRMS is designed for organizations in India. Unlike the global systems, it understands the unique needs associated with compliance, shifts and contract labor, making it more practical, scalable, and cost-effective for manufacturing companies compared to many of the global options.
With mobile access, real-time dashboards and the ability to generate compliance-ready reports, Savvy HRMS allows HR teams to shift from reactive operations to proactive employee planning.
Conclusion
Manufacturing companies must consider the effects of having employees who do not return from leave on other parts of their company, as well as factors such as accurately calculating employee pay and complying with regulations related to wages, hours worked, etc. These types of leave have an impact on every aspect of business operations. Therefore, a complete leave-management system is important to a manufacturing organisation’s ability to function successfully.
Most HR tools do not fully address the unique needs associated with manufacturing operations; however, Savvy HRMS offers many advanced capabilities to manufacturing industries that other popular HRMS products do not.
If your organisation is looking to integrate the management of all four major areas of business operations into one platform, consider Savvy HRMS. It is an intelligent choice for organisations engaged in modern manufacturing companies.
