8 Best Practices for Setting up an Effective Absence & Leave Management Program

Filip Dimkovski - TBR writer
By Filip Dimkovski
Nevena Radulović - Trusted Brand Reviews Editor
Edited by Nevena Radulović

Published November 20, 2022.

A row of office desks with computers and empty chairs

Ensuring your employees are satisfied with their work environment encompasses more than just offering a competitive salary—in fact, benefits like absence management are an important part of managing the staff in a company, as absence and sick leave can be stimulating for the employee's personal and professional life.

However, without the right absence management program, it'll be only a matter of time before you have a problem, as absence management is a process that requires properly tracking and overseeing the employees' absence to promote both corporate and personal well-being. What's more, having the right program is especially important for remote companies looking for ways to manage a global workforce. So, how can you implement an effective absence & leave management program? Read to find out.

» See more tips for effectively managing your global workforce

Benefits of an Effective Absence & Leave Management Program

An effective absence & leave management program can be quite beneficial for both the employee and the employer, as it allows employees to take time off when needed without jeopardizing their job security or performance reviews. Providing an organized system for tracking leaves, a solid program ensures employers are able to maintain accurate records of attendance and leave for each employee.

Furthermore, an effective absence & leave management program encourages a healthy work-life balance, resulting in a more productive and energized staff when they return to work. The truth is that employee compensation can't be the only that motivates your staff, as absence from work is necessary from time to time as well.

Now, let's see the essential steps of having an effective absence management program.

» Are you properly compensating your employees? See the difference between employee compensation vs. benefits

1. Employ Careful Record Keeping

The most important element of an effective absence & leave management program is careful record-keeping. You need to be able to track individual employee leaves and absences so you can monitor their patterns of attendance or lack thereof, which can help you manage and track workers' compensation and ensure each employee is adequately compensated.

These records could form part of the documents for payroll processing, as properly processing payroll could require calculating the hours worked, ensuring no employee is overpaid or underpaid.

» Running payroll without a hitch: see the essential features your payroll software should have

2. Implement a Comprehensive Leave and Absence Policy

To promote a healthy and productive workplace, your leave and absence policy needs to be comprehensive. This includes defining the types of leaves available to employees, such as vacation time, sick leave, or other types of paid/unpaid absences. It's also recommended that you clearly define the rules about accruing leave benefits and how employees should request time off.

You should also outline the consequences of extended absences, like late or missed deadlines, and how to handle emergency situations. This way, your employees are aware of the expectations and can make a decision about taking a leave that won't jeopardize their job security.

3. Have a Return-to-Work Program in Place

When an employee returns to work after a leave of absence, it's important to have a return-to-work program in place. This helps ensure the employees aren't disadvantaged because they've taken leave and their performance won't suffer as a result.

4. Keep Your Employees in the Loop

It’s essential your employees are kept up-to-date on any changes to the leave and absence policy. This could involve sending out emails or newsletters, as well as holding meetings to discuss new changes. You should also make sure your employees know how to properly apply for a leave of absence and what paperwork is necessary.

5. Monitor Your Business's Compliance With Labor Laws

It's important to monitor your business’s compliance with labor laws so that you don't end up with any legal complications. This includes guaranteeing all employees are appropriately compensated for their leaves and absences, while also ensuring your business maintains payroll compliance.

6. Use Reliable Automated Leave Management Software

Leave management software can play a vital role in helping you manage employee absences & leaves more efficiently. This automated system allows you to manage absence requests, track time off, and monitor attendance more effectively. It also simplifies payroll processing and ensures all employees are adequately compensated for their leaves.

7. Reward Attendance and Recognize Employee Efforts

It's important to recognize and reward employees for their hard work, which includes rewarding them for attending work regularly. This could be done through an employee rewards program that awards points or bonuses for every day worked without taking leave. However, not taking an absence isn't always directly correlated with productivity, so make sure to thread this line carefully.

8. Promote Employee Wellness

Finally, it's important to promote employee wellness by providing support for employees who are facing mental or physical health issues. This could involve working to improve workplace culture, flexible work schedules, and other types of accommodations that can help the employee return to work with a healthier state of mind.


Setting up an effective absence and leave management program is essential for any business. By following these best practices, you can ensure the process runs smoothly, while also guaranteeing your employees are adequately compensated for their time away from work.

The best way to ensure your leave and absence program is successful is to stay organized and be proactive in managing it by regularly reviewing your policies, procedures, and systems, as well as having regular meetings with employees to discuss any issues or changes. This will ensure everyone is up-to-date and your business is compliant with the relevant labor laws.

» Looking for the right payroll solution to adequately track and compensate employee absence? Read TBR's payroll software reviews and find the best fit.

The listings featured on this site are from companies from which this site receives compensation. This influences where, how and in what order such listings appear on this site. Our website contains links to product that might contain affiliate links which may reward a commission when you purchased via our links. Our goal is to compare and review the products and services we write about in the best way to help our users. We might not review and feature every product/service in the market.Our service is free of charge. We might make affiliate commissions when you make a purchase via our links. This may influence if and the order of services and/or products that we review.

TrustedBrandReviews and its affiliates do not provide private investigator services or consumer reports, and are not consumer reporting agencies per the Fair Credit Reporting Act (FCRA). You may not use our site or services or the information provided to make decisions about employment, admission, consumer credit, insurance, tenant screening or any other purpose that would require FCRA compliance.