What is absence management?

Absence management (also referred to as leave management) is the process through which companies monitor, track, and manage employee absences. It aims to ensure that a business can run smoothly while balancing its employees' needs for time off.

An effective leave management system allows your team members to be aware of their leave allowances and rights. They know when they are entitled to take leave, for what reasons, and what processes need to be followed.

It also helps to maintain productivity. By planning for employee absences, your company can ensure that work doesn't come to a standstill whenever someone takes time off.

Note, too, that employers are bound by certain laws related to employee leave. A structured absence management system ensures that these laws are followed, reducing the risk of non-compliance issues.

Effective absence management is key, as not all leave is planned. Employees may need to take time off unexpectedly for things such as sickness, local disruption, or dealing with an emergency. As an HR leader, you need to demonstrate understanding and empathy in such circumstances, while still ensuring that the company's operations aren't severely impacted.

Developing and implementing a leave policy that strikes this balance is a core part of absence management. Your policy should cover a variety of leaves (i.e. sick leave, bereavement leave, parental leave, and personal leave), and should clearly state the terms of each type of leave (including duration, eligibility, and the process for applying).

When dealing with a global team, implementing such a policy becomes increasingly complex, with different countries enforcing different statutory leave obligations. Many global companies create tailored policies for each region, although more and more organisations are exploring the idea of unlimited PTO to try to simplify this process.

The use of leave management software can help you do this, allowing you to automate many processes and ensure compliance.

An absence management system is a comprehensive tool that enables both you and your team members to easily manage leave periods. It provides a clear way to track, report, and analyse employee absences, ensuring clarity, efficiency, and compliance.

One of the fundamental benefits of an absence management system is that it delivers transparency. You can see who is off, when, and why, making it easier to plan and manage workloads. This clarity simplifies the process and reduces the risk of errors and misunderstandings that can lead to conflicts and inefficiencies.

For employees, an absence management system also provides a more straightforward and confidential way to communicate their need for time off. They can easily request, track, and manage their leave without having to go through complex, manual processes. This can contribute to a sense of empowerment, trust, and satisfaction in the workplace, boosting engagement and productivity.

To effectively implement an absence management system, ensure that:

• Your team members know how to use the system. This can be done through workshops, user guides, or even a dedicated support team.

• Your company's leave policies are clear and well-documented. This includes the different types of leave available, how to apply for them, and what documentation is required.

• Your policies are compliant with the statutory leave requirements in each country. Regularly check and update your policies as necessary to remain compliant.

• Your team members are encouraged to use the system. The more it's used, the more valuable data you can gather, which can then be used to further improve your leave policies and procedures.