Organizing employee time off tracking and putting these vital HR processes on track is often a hassle for teams. How do you make a policy? How should you manage PTO so it stops being such a headache? And which tools should you use? Learn how to keep track of PTO along with tips and business benefits of not ignoring the task.
Paid leave is among the standard work benefit inclusions that most employees around the globe are eligible for. Yet there are some implications of organizing such processes within a company, as it's not just about approving a few days off now and then.
Many pieces of the puzzle are involved, including accounting, payrolls, and team management, in general. For instance, when someone is out of the office, you must find a substitute among the rest of the workforce to fill in, reorganize workflows, or change the overall plans around to omit stumbles in business operations. And what if you have a big team? Then, tracking PTO for salaried employees can get tough.
On this page, we'll go over the best practices regarding tracking employee vacation and sick days. We'll share tips on organizing PTO processes effectively and making the most of your resources.
What Is PTO Tracking?
PTO tracking refers to the systematic process of monitoring and managing employee absence and paid time off. The various types of PTO for those working for a company can include sick leaves, vacations, personal days, national holidays, among others.
Tracking time off for employees also involves creating PTO policies and following them. They should cover employee time off eligibility and rules for accrual and usage. Such management also implies keeping an eye on each employee's accrued hours and days, how much time off work was used, and what's left on their remaining "PTO balance". Plus, companies must organize the leave request submission and approval processes as well as keep an accurate record.
The matter of how to keep track of employee vacation time and document absence varies from one company to another. Some still do so manually and rely on a good old PTO tracking spreadsheet, use timesheets, or customize an employee time off tracker template for Excel. However, there are more convenient ways to approach the matter, including using tracking methods that allow for automation and applying specialized software that's designed to facilitate leave management.
Why Is Employee PTO Tracking Important?
HRs and business owners sometimes learn the hard way that ineffective PTO tracking can lead to many errors, business operation disruptions, wasted time, lost money, miscommunication, and chaos. Here's why this process is vital and shouldn't be overlooked.
1. Adherence to Labor Laws
Being compliant with labor laws is integral for any business that's run officially. Time off is often regulated governmentally or on a federal level, hence employers have to follow the requirements to stay on the safe side. Failing to do so can lead to fines, disputes, and other unwanted consequences. Therefore, it is crucial to be aware of the local laws and stick to them.
2. Observing the Company Policies
Likewise, the specific PTO policies are generally established individually in companies. Employers lay down the rules and everyone must play fair and square. This is a prominent point, as being unbiased and ensuring that everyone hired has fair and equal time off terms is important, so it has to be monitored. Not to mention that clear policies also matter for the organization's accounting, management, and other internal processes.
3. Allocating Resources Optimally
Workload distribution is a tough call. However, making sure that business operations run smoothly requires carefully planning the workload, thus, you must take employee time off into consideration. Otherwise, a shortage in your workforce during a specific period of time can mean missed deadlines, delays and operation disruptions, process interruptions, and lowered productivity which all mean wasted money and opportunities, and it's bad news for business.
Of course, foreseeing and anticipating all cases of employee time off isn't possible, as there are emergencies and sick leaves. In this case, you'll most likely have to get someone else from the staff involved to fill in and then compensate for the overtime or sacrifice some tasks. But it's more than doable with planned time off in advance, such as employee vacation tracking.
4. Explicit Documentation and Record-Keeping
Having a single source of truth and reliable data to fall back on is essential when tracking employee paid time off. You have to have all the data captured and at hand, including how many days are allowed, how much time off was used and when, how much is left, and which types of time off were taken.
The latter point might imply that you need to have corresponding formal documentation in place such as written and signed vacation request paperwork or official confirmation documents (like a stamped doctor's note that's necessary to prove a person's time off work). All of this is needed to make sure that your calculations and payouts are correct, that all the regulations are followed, and that you avoid off-the-book actions and backdated PTOs.
More Business Benefits of Tracking PTO Accurately
Which other advantages does tracking employee time off bring companies regardless of their size? These are a few main ones worth noting:
More effective management — clearly organizing absence tracking processes lets you ensure there is fair play. You can omit miscommunication, process gaps, and headaches regarding schedules, workforce distribution, and resource allocation. When you have strict rules and well-outlined processes, employees request their time off, the request gets approved and logged in the system, all parties that have to be informed get informed, and the workload planning gets handled more efficiently.
Improved HR processes — concise employee time off tracking gives HRs the opportunity to keep their hands on the pulse regarding specific employees. For instance, you can look through records or generate reports to allocate absence patterns and review a person's absenteeism, which can influence performance reviews, contract terms, and so on. Time off affects the work climate too, letting HRs discover potential conflicts (e.g., if Angela is constantly out of office and Tim regularly fills in for his co-worker, this might lead to conflicts, burnout, and employee turnover).
Healthier work-life balance culture — company culture and the staff's well-being are both vital for companies, so regular time off can boost job satisfaction and ensure there isn't too much pressure on a specific employee. Having a vacation tracker can help strike a balance, which will positively impact the company's image.
Say "goodbye" to PTO chaos with OrgaNice in your Slack
What is the best way to track employee time off? And how do you go about organizing such processes in your company? Here are the things you should take care of.
Establish Your Time Off Policy
A company's time off policy can be traditional, unlimited, or a mix of both referred to as a PTO bank. Depending on the selected path, an employer must create a set of rules regarding time off, keeping the legal side in mind, select an accrual method, and establish PTO balance rules. At this point, the following main points are considered.
the PTO period (namely, whether the PTO calculation period starts at the beginning of the calendar year, an employee's work anniversary, or another period);
who is eligible for paid time off and when (e.g., only full-time hires, and an employee is allowed to take any type of paid time off only upon successful completion of the trial period);
rules on accumulating or earning time off (for instance, after working 20 hours, an employee accrues 1 hour of paid time off, or maybe an employee can be given full allotment at the start of the year);
types of time off available (what kind of paid leave is available, whether weekends and holidays count as days off, if half-days or hours off are available options, what falls under the unpaid category, are there dates that are always off limits for everyone, etc.);
how much time off is available (the total cap and overall terms for granting time off, how many days are allowed for each time off category per year, benefit package add-ons, compensatory time off policies, extra days based on years of service, the allotted time, and so on);
whether a negative balance is possible or not (for example, if an employee can get time off "credit" before actually accruing the days);
whether time off rollover is allowed (i.e., what happens with unused time off, if it is possible to carry it over to the next period, does it expire with or without compensation);
how employees are informed about the PTO policy (access to the policy, for example, it could be provided during onboarding or stored in the workspace).
Outline the PTO Request Submission Rules
Likewise, it is also crucial to decide on the rules regarding submitting time off requests and how to ask for PTO, that is, how the process is lined out. You should decide on the following things.
where to submit a PTO request (indicate which tool or system is in use for request submission and how to access it);
how to submit a request (the specific steps an employee must follow, e.g., fill out a form, choose the type of time off, indicate the absence dates and duration, add a comment explaining the reason for time off, tag your manager, notify a specific person, and so on);
notice requirements (for instance, how far in advance vacation time should be "booked", the maximum duration of time off allowed at once, among other things);
special submission rules (e.g., when a last-minute PTO request is permitted, or if employees are allowed to take time off at the same time as their direct manager or teammate).
Figure Out the Approval Processes
Moreover, you have to think through the approval and notification process. There are several fundamental points that need to be considered.
who approves whose time off requests (indicate who will be appointed to handle time off requests, it could be your managers or a single decision-maker, and a lot of this will depend on the hierarchy outlined in your org chart);
how long request processing takes (for instance, a rule regarding the maximum time a request can be pending);
rules for declining requests (a list of reasons for request rejection);
request withdrawal or modification rules (a policy concerning when a submitted request can be changed or cancelled);
who should be notified about time off requests (perhaps certain people should additionally receive notifications when a request gets approved like an office manager, accountant, or teammates).
Organize PTO Tracking
Finally, you need to organize a PTO tracking system to effectively manage employee leaves. This means that you have to decide where PTOs will be registered, where the time off communication happens, which parties are involved, and who is responsible for tracking.As such, some companies create custom PTO processes in their internal CRMs like Salesforce. Others use spreadsheets and messengers or purchase special tracking software to automate the process. Either way, when organizing the time off tracking process, there are some things you have to do:
choose the right tools and automate where possible;
handle system settings according to your PTO policy;
define working days, mark national holidays, choose the PTO types, and so on;
make a clear PTO tracking form with the required fields;
take care of the notifications and logging;
create a calendar to track employee vacation time and other leaves.
You have to think through various aspects like transparency. How is data going to be stored? Will the historical data be visible? Or how will the request status for pending, approved, and declined requests be shown?
Real-time visibility into PTO balance information is integral since there won't be a need to bug HRs or those responsible for keeping track of time off in the company if employees see the dashboard. If a person wants to check their used days, how many are available, or anything else, this data should be easily accessible.
The same goes for timely notifications, as this can facilitate team communication. So, if possible, updates regarding approval, rejection, or other changes have to be systemized. In fact, even team notification can be worth the effort, as it's best when everyone is in sync about upcoming approved time off of their colleagues.
Speaking of which, having a PTO tracking calendar with a timeline is another must. With easy visualization, anyone can view who is off and when helping avoid overlaps. The calendar can also show national holidays, which is especially useful when a company has teams and offices in multiple countries and locations.
Best Practices on Improving Time Off Tracking
Ensuring that both employee and business needs are catered for and met is rather effort-intensive. Let's overview a few recommendations on organizing great paid time off tracking processes all parties will be satisfied with.
Make Sure Everyone Knows the Policy
Communicating the leave policy clearly and early on and ascertaining that all employees are aware of the rules is highly important. It can save you from unwanted disputes and boost overall planning. People will have a better understanding of when and how much time they can take off, sync with the teams and managers, and prepare for the time away from work better.
Prioritize Planning
Proactiveness is s strength when it comes to the best way to track vacation for employees. When employers are flexible and open to coping with absences beforehand, there are fewer gaps and unexpected turns that leave people stressed. For instance, a clear time off tracking system allows you to cross-check any possible overlaps, which can boost decision-making and help avoid understaffing.
Use a Transparent Tracking System
Once again, when employees have access to the leave tracker or PTO dashboard (instead of just the CEO, managers, HRs, or accountants), there's less fuss around time off. People don't have to set off on a "quest" texting multiple colleagues in an attempt to find out how much time off they have left or whether they can go on vacation next month. They can have all the necessary rules, data, information, and calendars before their eyes, and will thus modify their requests accordingly. What does that mean? People are on the same page which implies productivity, fewer PTO rejections, and saved time on going back and forth.
Gather Feedback
Optimization is always a good idea. If your employees spot inconsistencies in your processes or have ideas regarding how to improve paid time off tracking, hear them out. Being open and regularly gathering employee feedback can strengthen the work culture, enhance your workflow, and make people happier.
How to Track PTO Effectively [OrgaNice Example]
Most companies can't do without a clean-cut absence and paid time off tracking system. And if your team uses Slack, then employee vacation tracking can become a breeze. Here are a few things you should know about the OrgaNice time off and vacation tracker.
First of all, OrgaNice makes it possible to handle all time-off-related processes right within your Slack workspace without any context switching or purchasing separate standalone software.
Setting up and streamlining leave management processes is really simple, as the time off tracker lets you manage PTO requests, brings lots of automation to the table, and provides access to centralized data storage. The system makes employee PTO tracking faster and more organized while its transparency makes communication and planning easier. Here's what the OrgaNice bot does:
allows for easy customization according to any company's PTO policies;
lets you craft a time off form (with changeable fields like the PTO type, manager, start and end dates, comments, and others);
simplifies PTO request submission (can be done via the "Request Time Off" button in the OrgaNice tab in Slack);
automizes request management (managers receive notifications via Slack when a request is submitted);
keeps everyone on the team notified and in sync by sending instant approved time off notifications to a designated or public Slack channel (where people can add comments and discuss vital matters like who will cover and fill in);
keeps a record of the past used time offs and upcoming ones and breaks them down by type;
provides up-to-date information on the time off balance and keeps the policy at hand, which is useful both for employees and employers;
automatically places an emoji in the employee's Slack status, marking that they're away (for instance, using a palm tree emoji for vacations);
automatically updates the calendar (it marks employee birthdays, work anniversaries, national holidays when people are off, as well as the approved time off by type);
lets you generate reports (provides simple access to time off statistics on absences and dynamics in just a few clicks).
One of the best parts about OrgaNice apart from all the things mentioned above, is that it's completely free to use if your team has < 36 members in your Slack workspace. And if you have a bigger team, you can try it for free for 14 days and then pay $1.25 per month per employee (or save even more if billed annually). And this payment includes not only the time off tracker but also access to other cool stuff like building an AI-backed org chart, employee feedback surveys, the birthday bot, the kudos bot, and more!
Keep all PTO processes organized in your Slack workspace
There, you have it, now you know how to track employee PTO effectively. As you see, tracking paid time off doesn't have to be a headache prone to constant manual spreadsheet updates or unorganized fuss and time wasted on asking how much time a person has accrued and can take off. By establishing a fair policy, communicating it clearly to the team, and getting an employee vacation tracker, you can streamline PTO submission and management processes, making it simple for people to stay in sync.
And if your team is using Slack and is sick and tired of purchasing separate standalone software for every little HR task, you're more than welcome to take OrgaNice for a spin. It can help you build an org chart using AI in minutes, remove your ineffective time off tracking pains, and offers lots of other great tools that can be simply integrated right into your workspace (without the need to ever leave Slack)! Feel free to reach out to us if you have any questions, we'll be glad to chat.
FAQ
1. What does tracking PTO mean?
PTO tracking involves managing employee absences from work, including vacations, sick leave, personal time, and other types of paid time off. Tracking time off also implies monitoring employee leave requests and following clear leave policies.
2. Why does time off tracking matter?
Effective time off tracking is crucial for adhering to labor laws and regulations, as well as ensuring that all employees receive fair and equal time off. It also helps in workload planning and management, preventing staffing shortages and boosting productivity.
3. What is the best way to manage team vacation calendars?
The most efficient way to manage team vacations is by leveraging a clear tracking system, such as shared dashboards, HR software or vacation trackers (like OrgaNice for Slack). Centralizing vacation requests and approvals in one place simplifies monitoring for HRs and makes it easier for employess to submit their time off requests.
