Transforming leave management for a technology business facing excessive annual and long service leave liabilities, strategic interventions were implemented to enhance operational efficiency and employee satisfaction.

• Accrued leave creating financial and operational concerns
• Lack of cohesive policies for leave management
• Ineffective processes failing to prevent or detect excessive leave accrual
• Unsubmitted or unprocessed leave requests
• Balancing resolution with maintaining operational efficiency and employee morale

1. Solution Strategy

• Reviewed leave balances, identified excessive accruals, and engaged with employees to correct inaccuracies and plan leave usage
• Introduced options like extended leave or cashing out accrued leave
• Implemented a user-friendly system to streamline leave submission and tracking
• Established clear leave policies, limited accrual to six weeks, and required leave-taking, supported by organisation-wide communication
• Educated managers on effective leave management and new policies
• Embedded leave management into the employee handbook, onboarding, and ongoing manager training to foster proactive leave planning.

2. Implementation

• Prioritised cases based on leave balance analysis
• Communicated with employees about leave situations and negotiated usage or cash-out arrangements
• Deployed new leave management software with user training
• Revised human resources policies and employee handbook to include new leave guidelines and ensured widespread understanding
• Hosted education sessions for managers to prepare them for managing leave effectively
• Regularly monitored and reported progress to adapt strategies as needed

• Significant reduction in overall leave liability on the company’s balance sheet
• Enhanced employee experience, engagement and satisfaction due to clearer human resources policies and flexible leave options
• Improved operational planning and reduced risk of unplanned absences
• More efficient leave management process, simplifying submission and approval for employees and managers

• Clear human resources policies and advanced technology are crucial for effective leave management
• Direct engagement with employees and flexible options improve satisfaction and compliance
• Manager education is vital for the successful implementation of new leave policies
• Planning, communication, and training ensure sustained improvements in organisational well-being and operational efficiency