Up to date Could 9, 2023
Does your organization nonetheless do PTO tracking with spreadsheets? How’s it working for you?
When spreadsheets became available, they offered many advantages over hand calculation. They provided a nifty way to store the data. They automated some of the calculations. You didn’t need quite the same level of business math acumen.
For many reasons, spreadsheets became a staple for business management. It’s no wonder Microsoft Excel has dominated the business world for over 30 years.
PTO Tracker Software
In contrast, employee time tracking software didn’t become mainstream until decades after Excel was introduced. On-premise, custom-built legacy solutions were expensive. They didn’t always play well with other software. For these reasons and others, the adoption rate has lagged behind other types of business software.
But now employee timekeeping software with PTO (Paid Time Off) tracking is accessible, web-based, and cost effective. It’s as easy to use as any phone app. Most systems are easier to use than Excel or Google Docs. PTO tracker software makes accruals much easier than tracking on spreadsheets.
We don’t want to disparage spreadsheets. They have proved their value. But today, they aren’t the best choice for tracking PTO.
Allow us to explain.
First, let’s break down what PTO involves.
Why Track Paid Time Off?
Paid time off (PTO) is a valuable benefit companies offer to employees. Employees rank paid vacation time as their second most-valued benefit after health insurance. Additionally, employees who believe their organization encourages vacation report higher job satisfaction.
But failing to track accrued time off can create issues. Companies that don’t have an absence management plan are losing an average of $775 per employee, per year. Time off management is even more critical in times of workplace disruption.
Employees who care are productive, motivated and engaged. Engaged employees avoid unnecessary absences, and that’s good for business. Better attendance tracking and PTO management avoids destructive employee absenteeism.
How Do You Manage PTO?
Your company’s PTO management policy might include the following steps:
- Create and document your PTO policy in your employee handbook
- Train managers on your PTO approval system
- Track employee time
- Calculate employee balances
- Allow for year-end rollover if applicable
- Adjust for tenure if applicable
- Answer employee questions about their PTO
- Notify employees of soon-to-expire earned leave
But when you use spreadsheets instead of a PTO tracker, everything in this process is manual. You have to enter employee hours, set up the formula, and make sure it works like it should. Even a minor error in PTO tracking can lead to a major payroll mistake that costs money.
How Can PTO Tracker Software Help in Managing Remote Workers?
As long as you have employees who work outside a manager’s workspace for some fraction of their hours, you need to consider how you track their paid time off (PTO). If your company qualifies for government assistance, you may also need to track