Paid Time Off (PTO) Management Software

Natasha Wiebusch
Natasha Wiebusch

Table of Contents

With a great paid time off (PTO) management software, HR can create schedules, process time-off requests and customize their PTO policies in minutes. But if your PTO software doesn’t have the capabilities you need, it will likely create more headaches than solutions. In this article, we cover what features every great PTO management software should have, and some tips for how to choose the best PTO software for your company.

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What is Paid Time Off (PTO) Management Software?

Paid time off management software is an HR management system that automates key PTO processes, such as implementing PTO policies, processing time off requests and calculating PTO balances. Usually, PTO management software also has calendar capabilities that show who is currently in the office and who is on PTO leave.

See PTO management software in action

The Benefits of Using a Time Off Management Software

PTO management software benefits both HR departments and supervisors. Some of these benefits include:

  • More Time for Strategic HR: When PTO and scheduling are automated, HR has more time to engage in strategic HR initiatives.
  • Fewer PTO Errors: Automating paid time off calculations will prevent common clerical errors.
  • Easy Scheduling: Automated scheduling makes it easy to create weekly schedules.
  • Cost-Saving: PTO management software helps create efficiencies by preventing overscheduling and providing custom scheduling reports.
  • Transparency: With PTO software, HR can easily show employees how their PTO was calculated and how requests are processed.
  • Compliance with PTO Laws: PTO management software helps ensure that practices comply with the many paid time off laws governing vacation, family, and medical leave.

What Great Time Off Management Software Looks Like

There are many PTO management software products on the market. Some of these have better features than others. Below are some of the features to look for in great time off management software:

Time off Request Workflow

Once a time off request is submitted by an employee, your PTO management software should provide an approval workflow that gives certain individuals, usually supervisors, the ability to approve or deny the request.

Customizable Policy

PTO software should allow you to customize how PTO is earned, used or lost to match your company’s PTO policy and procedures. For example, some companies just have one category of PTO while others have separate categories, such as personal leave, vacation leave and sick leave. In many cases, these categories are managed differently by the company.

Integration Capabilities

Great paid time off management software must be able to integrate with your payroll software and your time tracking software. If it can’t integrate with them, portions of the PTO management process will have to be done manually.

User-Friendly Employee Portal

Employees will use the PTO management software to submit their time off requests. Because most employees don’t interact with PTO software on a regular basis, it’s important for your software to be user-friendly.

Time Off Calendar

A time off calendar will show you who is working and who is on leave at any given time. PTO management software should include this feature so that you can make sure you’re fully staffed when employees take time off.

The Top 3 Time Off Management Software of 2021

1. Eddy

Eddy HR is a full-service HR software company that provides PTO, time tracking, hiring, onboarding, payroll and people management solutions for small to medium-sized companies. We’re focused on helping clients with every aspect of HR so that our clients only have to pay for one subscription to do it all.

Why we like it: We love our company. We believe Eddy HR is the best PTO solution because we haven’t just thought about what capabilities you need, or which features would make our software the best. We’ve also thought about who’s going to use our software every day. Our software is powerful, user-friendly and intuitive for HR professionals.

2. TimeClock Plus

TimeClock Plus is a time tracking and PTO management software with key scheduling capabilities. Although it doesn’t have payroll or other HR capabilities, TimeClock has a large list of common payroll software products that it can integrate with, including common platforms like Quickbooks, ADP, and Workday.

Why we like it: We like TimeClock Plus because, in addition to the typical PTO management software features, it has time-keeping capabilities. This feature is extremely important for any company that has hourly employees.

3. Replicon

Replicon is a time tracking software company with various products for calculating paid time off and tracking time. Replicon is solely focused on helping companies track time for both internal and external purposes. They have PTO management software for project-based time tracking and for traditional time and attendance.

Why we like it: We like Replicon because of its focus on PTO software for companies that bill clients on a project basis. Replicon also has PTO software for companies with more traditional revenue streams as well.

How to Pick the Software that’s Right for You

1. Answer Key Questions About Your Workforce

Before choosing a PTO management software, you’ll want to answer a few key questions about your workforce:

  • How many employees do you have?
  • Are they salaried, hourly, or both?
  • Do you have one, two, or three shifts?
  • Are shifts stagnant, or do they change?
  • Do you need to pay contractors?

2. Consider Integration Capabilities

Any time you purchase an HR management software, unless it’s an all-in-one suite, you have to make sure your new software can integrate with your other software products. This can include time tracking software, payroll software and benefits administration software. If you rely on integration software, make sure to let them know which PTO management software you’re considering.

3. Choose Your Budget

Once you know what your needs are and which PTO management systems will integrate with your existing HR software, you’ll have to choose your budget for PTO. Today, almost all software solutions are subscription-based. Subscription-based software is typically charged per month, and usually increases by how many employees you have.

Questions You’ve Asked Us About Paid Time Off (PTO) Management Software

How much does time off management software cost?
Although the paid time off management software market is competitive, prices still vary. Factors that will impact cost include how many employees you have, what features are included in the software and the software company itself. Most PTO software is subscription-based.
Do I need time off management software?
All companies that have employees should consider using PTO software. It increases efficiency, reduces any room for error and saves companies money over time.
Natasha Wiebusch
Natasha Wiebusch

Natasha is a writer and former labor and employment attorney turned HR professional. Her experience as a litigator and HR trainer inspired her to begin writing about anti-discrimination laws in the workplace. As a writer at Eddy HR, she hopes to provide helpful information to both employees and HR professionals who need help navigating the vast world of human resources. When she’s not writing, you might find her cheering on the Green Bay Packers or hiking in the Northwoods of Wisconsin.

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