DeskTrack Guide: Employee Paid Time Off Tracking Software

time tracking software

Every organization has its own paid time off (PTO) policy that keeps the organization’s workflow running smoothly. Investing in paid time off tracking software can be a long-term employee benefit and a competitive advantage for a company, which is why many companies provide varying time-off programs to their employees. As a result, the PTO tracking software appears to be very popular with employees.

For an organization having a large workforce, keeping track of staff vacations, sick days, and remote work is quite a difficult task. It could eat up a lot of time and resources that could be better spent on other important tasks. According to the survey, after one year of service, more than a third of private-sector workers received 10 to 14 days of paid vacation in 2021. After ten years of service, 33% of private-sector employees received 15 to 19 days of paid vacation.

Thankfully, both employers and employees no longer have to put up with this time-consuming process. By investing in the PTO management software, things are now a bit easy and manageable. Moreover, it attracts more employees to work. As per the report, 63% of employees in America would prefer to work for a company offering a PTO policy.

Employees can request time off digitally using good paid time off tracking software. Employers can accept or reject them at their leisure. Using the software can save time for the HR team and employees. Before we jump into the reason for the investment in PTO tracking software, let us check what exactly the software is and the policy.

What is Paid Time Off Policy (PTO)?

Paid time off can refer to any paid leave program, although the PTO abbreviation often refers to a policy that bundles all paid leave into a set number of days. Instead of receiving separate allowances for sick days, personal days, and paid vacation time, as in a standard paid leave policy, PTO time tracking software is a single pool of paid time off that employees earn and accrue over time.

Employees often “earn” PTO according to the hours or days they work, which is then deposited to a PTO bank, which they can use immediately or after an interim period, depending on the policy. It’s crucial to remember that PTO policies are often undefined, with business owners deciding on the specifics, like whether they provide 20 days plus corporation holidays, 3 months of vacation, unrestricted, accumulated, or upon application.

What is Employee Paid Time Off Tracking Software?

Employee leave requests are routed to the appropriate person in the workflow for approval using Paid Time Off Tracking software. With the use of graphic reports, the time-off management dashboard will illustrate who is in the office and who is on leave. It also allows companies to create custom leave policies and communicate them to their workers.

Why Use PTO Tracking Software?

As a small business owner, running the office and balancing your responsibilities can be challenging. By using a PTO (paid time off) tracking system, you will reduce stress, create consistency, and enjoy more control over your staff. There is a direct correlation between having an up-to-date schedule and feeling happy at work.

Why Employee Paid Time Off “PTO” Tracking Software is Required?

Organizations need to cut-short time on certain activities, especially when employees seek to leave. Using the PTO tracking software is something that every organization would love to invest in. Let us check some of the reasons to invest in paid time off tracking software.

For Flexibility

One of the reasons to invest in this PTO tracking software is the flexibility and accessibility to any device. Be it the desktop or mobile, the software is accessible.

Complete Centralized Process

The unified platform will make the process smooth. The centralized platform is what makes this software the best tool.

To Get Transparency

Transparency is yet another reason to invest in the PTO tracking software. Organizations don’t have to worry about the errors, or delays associated with manual processing because employee PTO leave balances and accruals are available centrally.

For Cost-Saving

Paid time off tracking software carries comprehensive features resulting in significant cost savings by decreasing the time and money spent on manual intervention and paperwork.


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What Makes PTO a Good Investment for Organizations?

There are various reasons why having the best PTO is beneficial in any workplace. For many businesses and employees, this benefit allows for unexpected life occurrences while also reinforcing workplace trust. Here are nine reasons why unrestricted PTO could be a financially beneficial advantage for any company:

Offers Centralized Data

A smoother process flow is possible when all leave requests are stored in a single platform. A single platform stores all paid time off requests. This unifies the personnel database, allowing administrators to locate employee information at any moment. This centralization is critical for a smooth operation. It also enables firms to plan ahead of time and transfer duties to cover for the absence of a single employee.
Misinformation and confusion are also avoided by centralizing data. Everyone is aware when a team member is on vacation, making it easier to manage the workload.

No Issues of Transparency

This software keeps track of how much paid time off employees have accrued, how much they’ve used, and how much time off they have available. As a result, it reduces the impact of human error and the inevitable delays when HR personnel must manually handle enormous amounts of data. Most importantly, it increases transparency. Allowing employees to see how much time off they have left and plan accordingly. When supervisors approve or deny their time off requests, they’ll be notified so they may make changes or enjoy their PTO!

Meanwhile, supervisors and team leaders can keep track of upcoming leave plans without becoming overwhelmed with paperwork. It’s a win-win situation!

Helps in Increasing the Productivity

Employees who are well-rested are more productive and efficient, according to conventional wisdom. PTO could help boost company productivity dramatically. People will be less prone to burnout, exhaustion, disillusionment, and stress. If they are allowed to choose when and how they want to relax and recharge their energy, they are not condemned for doing so. Of course, it will have a favorable influence on the employer’s spending because allowing limitless PTO is significantly less expensive than covering extended sick vacations due to mental illness.

No More Manual Process and Saves Costs

When a corporation adopts an unlimited PTO policy, the costs of administering paid time off are eliminated. Some companies pay HR and finance personnel to manage time off for their entire workforce. That time and money investment vanish virtually instantly, freeing up resources for more effective endeavors.

No More Admin Tasks

Best PTO tracking software can help administrators with the time-consuming process of approving time off. Employers who track PTO requests with sticky notes excel spreadsheets, and endless email chains are likely anxious. Furthermore, they are most likely not giving employees the experience they desire.

Manually managing time off can lead to mistakes, burnout, and confusion. Last-minute demands, rearrangements, and a rush to fulfill deadlines are all possibilities for admins.

Employee PTO tracking software simplifies the process, ensuring that employees receive the vacation they deserve. Also, people in management positions are given a break.

Offers Flexibility to Managers and HR

PTOs provide mobility and demonstrate to your employees that you are aware of their needs. They assist you in establishing trust, which is the foundation of long-term employee relationships.
It assists you in meeting the basic human need to feel valued and recognized, allowing you to keep your talent for longer periods of time.

Simple Communication with Remote Workers

When sick and vacation days are separated, your human resources staff will have to spend extra time keeping track of each employee’s time. Days off must be validated, which takes time and resources. With paid time off tracking software benefits, all you have to do is keep track of whether or not an employee worked that day. There is no need to be concerned about the reason for the absence.

Helps in Making Informed Business Decisions

You never know when sick days will be used when you give them as part of a benefits package to your employees. When an employer, you may find yourself without an important team member just as a critical project is due. Employees can take every day off if they choose to use PTO management software. If employees don’t get sick that year, the employer can more effectively plan for their absences. Scheduled coverage enables more consistent responsibility management.


With seniority, most PTO Benefits policies allow extra days off. Longer-serving employees are entitled to more vacation time. This motivates employees to stay with the company in order to benefit from the time off benefit. Employees can be rewarded with PTO, which is a more flexible choice. These rules are being implemented by an increasing number of firms in an attempt to attract better employees, retain existing ones, and increase workplace efficiency. This is precisely why most multinational companies are opting to use employee-paid time-off management software in today’s world to reduce management costs and increase profits.

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