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Warning: Untaken annual leave is a huge hidden expense! Here's how to manage it

by , 04 July 2016
Warning: Untaken annual leave is a huge hidden expense! Here's how to manage itDear reader,

Do you have employees with more than 15 days' leave owing to them? Maybe some of your employees have more than 60 days' outstanding leave?

If so, you're not managing your company leave efficiently. And these excess days could be costing your company thousands.

Here's how you to manage annual leave effectively....

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Untaken annual leave is costly.
Did you now that any leave that crosses a pay increase date will land up costing you more?
Basically, the more you allow your employees to accumulate leave, the heftier the leave bill becomes. This could severely affect your company in the long run.
Luckily, there's an effective way your company can manage leave better.
Seven ways to manage your employees' annual leave more effectively
Method 1: Hold your managers accountable to manage leave in their departments. Leave management must form part of their goals. Review their performance regularly.
Method 2: Use the outstanding leave lists to see if there's a particular manager or division that's doing poorly at managing leave. Spend time assessing where the actual issue lies and make sure the policy is applied correctly going forward.
Method 3: Make it a mandatory requirement that each department submits their leave plans for the year at the start of each leave cycle.
Employees will then know in advance when they'll be going on leave and managers can also make appropriate resourcing plans, says the Practical Guide to Human Resources Management.
Your employees can still change their leave dates if their circumstances change, as long as it doesn't clash with other employees' agreed leave dates.
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Seven ways to manage your employees' annual leave more effectively… Continued

Method 4: Require quarterly leave reporting. This'll help you identify when leave management is slipping. You'll also be able to take steps to correct it before it becomes a big issue again.
Method 5: Conduct ad hoc leave audits. You don't have to audit the full employee base. You can select a certain department, division or even a random selection of employees to audit.
Method 6: Do spot checks from time to time. Request an employee's file to check for leave records and ask for a printout of their leave records from payroll. Compare this information against the leave calendar and leave reports you have for their department.
If the spot check shows they're not being well managed in terms of annual leave, broaden your check to other employees from the same area. Then, tackle the issue head-on with the relevant manager.
Method 7: Inform employees of their rights in terms of the annual leave regulations. This'll empower them to manage their own leave. They can then ask for leave or schedule leave with their managers instead of being told when to take leave.
Well there you have it. With these methods in place, you'll be sure to manage your annual leave effectively in your business.
P.S.  Do you need an easy-to-follow and practical report with sample templates that'll help you nip 'duvet days' in the bud? Click here to find out how the Ultimate Guide to Sick Leave can help you now… 

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