PeopleSonic’s HR management platform has been upgraded with new features, implemented with greater team productivity and HR efficiency in mind. After last week’s deep dive into timesheets, this week we will look into leave liability reports, what function they perform, and how to make the most out of them.
Leave liability reports can be accessed in the PeopleSonic product under the payroll menu. Let’s get started.
What is leave liability?
Employees are entitled to a certain number of leaves a year, based on their employment status (permanent, full-time, or part-time – contract employee
s generally don’t accrue leaves). Leave liability is the financial value for all types of leaves accrued by the employee, that is owed to them by the company.
What does a leave liability report include?
A leave liability report is a detailed breakdown of an employee’s pay cycle, the leaves they have accrued, and their financial liability. Below is a look at what the PeopleSonic leave liability report looks like:
The weekly pay rates (ordinary and average) are determined by the laws of your particular country, as is the holiday pay liability – these are used in conjunction with the number of leaves accrued to calculate the leave liability per employee.
Automating the leave liability report
Leave liability is generally a manual and collaborative effort between finance and HR departments to calculate and record the relevant data into balance sheets. Manually generating a leave liability report, whether on a daily or weekly basis, would involve daily communication, checks, and balances to make sure the most updated information is fed into these reports for managers and the company decision-makers. Not only would that be a time taking process, but would also be prone to mistakes due to so many moving parts involved.
PeopleSonic helps centralize and automate the leave liability report – a single datasheet where you can sort by employee name and date is a powerful tool that is updated automatically based on data picked up from other features of the product. This means that managers can, at the press of a button, get the latest numbers for any employee’s leave liability, which would let them evaluate the cost of an employee potentially leaving, among other things.
The need for leave liability reports
Companies need to have on the fly access to leave liability reports for balancing financial liabilities, work output, and employee welfare. That’s because employees who don’t take the fixed yearly leaves accrue a higher financial liability to the company, but it also negatively impacts their mental and physical health, which in turn can affect the quality of their work. On the other hand, poorly planned mandatory time-off can also impact project timelines and work output on time-sensitive tasks.
Smaller businesses can’t afford to have dedicated resources in finance and HR collaborating and managing annual leaves and liabilities, but it is a critical task that needs to be performed. That’s where solutions like PeopleSonic come into play, with dedicated reports to help reduce the workload involved in strategizing around leave liabilities. With this feature rolling out soon, small to medium-sized businesses can quickly take advantage of it by offloading a lot of manual labor to the PeopleSonic platform!