Tracking vacation and sick time for your employees is essential for smooth operations, but how you do it can make a significant difference. Many businesses, especially small ones, rely on spreadsheets for tracking leave. While they are better than nothing, they have many limitations compared to PTO (Paid Time Off) tracking software. In this blog, we’ll explore the pros and cons of using a vacation and sick time tracking spreadsheet and suggest why switching to specialized software might be the better option for you.
Pros of using a vacation and sick time tracking spreadsheet
Cost-effective
Spreadsheets are virtually free. There are a range that you can acquire for little to nothing, making them budget-friendly, especially if you are a small business that is not ready to invest in dedicated HR tools.
Customizable
Spreadsheets are flexible and they be customized to include your specific needs. You can include all types of leave such as vacation days, sick days, personal time off, or even unpaid leave. This ability to tailor the spreadsheet means you can align it with your business structure.
Simple and accessible
Spreadsheets are easy to use and most employees and managers are familiar with how they work. They can also be accessed from anywhere and by almost anyone you wish, making it easier for both you and your employees.
It’s better than no tracking
For small companies or startups with limited resources, using a vacation and sick time tracking spreadsheet is far better than having no system at all. It provides at least a basic level of organization and accountability, ensuring that you track who is taking time off and when.
Cons
Time-consuming and prone to errors
One of the biggest drawbacks of using spreadsheets is that they are manual and time-consuming. Every time an employee takes a day off, you have to manually input the data, and there is always the risk of human error. Whether it’s a calculation error or simply forgetting to update the spreadsheet, errors are common.
Real PTO tracking software automates these calculations, ensuring real-time updates with no manual entry needed. This reduces errors and the workload on managers or HR staff.
No real-time updates
Unlike software that updates leave automatically, spreadsheets require manual updates, which can lead to delays. Employees and managers might not have access to the most up-to-date leave information, leading to misunderstandings. Specialized software includes self-service options where employees can view their leave balance in real-time.
Limited reporting and analytics
Spreadsheets have limited reporting capabilities compared to software. While you can create basic formulas to sum totals, generating detailed reports or analyzing trends such as absenteeism can’t really be done without lots of manual effort. Software can generate detailed reports with a few clicks, offering insights that help you manage your workforce better.
No integration with payroll or HR systems
Spreadsheets also lack integration with other business systems that you might use. PTO software often integrates seamlessly with payroll, ensuring that time-off deductions are accurate and up-to-date for every pay period. This can save significant time and reduce the risk of payroll errors. Using spreadsheets means having to manually input data into your payroll system, increasing the chances of discrepancies and creating more admin tasks for you to complete.
No compliance features
Making sure that your business is compliant with laws and regulations surrounding PTO is crucial. Since spreadsheets don’t provide any automatic compliance checks, it is possible that leave could be calculated wrong, leaving you open to potential legal issues. Software combats this and is designed with compliance in mind, with features that help you stay within legal guidelines and avoid costly fines or penalties.
Limited security
While spreadsheets can be shared among team members, they lack the robust access controls and security features that specialized software provides. Employees may accidentally alter or delete data, especially in shared environments. Software offers permission settings so only people who are authorized can change data and view their own information.
Manage PTO with Timetastic!
Manage PTO with us! Take a look at our blog ‘PTO Tracking Software - what are your main options?’ for more details on how it works. Make the step up from spreadsheets today and you’ll see the efficiency boosts for your business in an instant!
Start your free trial today! You can also arrange a free demo by contacting the support team.