Employee leave requests are surging. For the third consecutive year, organizations are seeing significant increases — with 57% of HR managers reporting growth in 2024 and over half experiencing jumps of 21% or more. The primary drivers? Illness and injury recovery, followed closely by mental health challenges and caregiving responsibilities.
Here’s why this matters: More than a third of people who feel they had a poor leave experience look for new jobs, while positive experiences boost productivity, motivation, and workplace loyalty. With over 200 federal and state labor laws governing different types of leaves, and more going into effect in 2026, the risk for error is growing by the day.
What is Leave Management Software?
Leave management software automates the complex process of managing employee absences, from the Family and Medical Leave Act (FMLA) and state-specific requirements to company policies and beyond. The best systems go beyond basic time-off tracking to ensure compliance, streamline approval workflows, manage employee leave requests, and support employees during critical life moments while helping organizations identify patterns in absence trends.
Modern leave management software should automate manual processes, integrate seamlessly with your existing human resources systems, and provide real-time visibility into leave and case status for both employees and managers handling workforce planning too.
How to Evaluate and Find the Right Solution
With a growing number of solutions available, selecting the right leave management system requires understanding your organizational model first. Are you looking for a software solution that manages leave internally? Are you considering outsourcing leave management entirely? Or are you looking for a combination?
If you’re exploring outsourcing options like Professional Employer Organizations (PEOs) or Third Party Administrators (TPAs), this guide focuses more on software-involved solutions. However, if you’re looking to entirely outsource your leave of absence management , ensure any TPA or PEO partner is powered by proven leave management technology like AbsenceSoft. You can learn more about outsourcing considerations in our separate resources.
For organizations managing some or all of leave internally, this guide examines three key software categories, each with distinct strengths and considerations.
Comparing Your Options: Three Distinct Approaches
HRIS Platform Extensions
Large workforce management platforms include leave management as one component of their broader offering. These solutions works well for organizations with simple leave policies and minimal compliance complexity.
Key strengths:
- Native integration within existing HRIS platform
- Familiar interface for current system users
- Single-vendor relationship for multiple HR functions
- Often included in existing platform licensing
Considerations:
Why have companies chosen AbsenceSoft instead of their HRIS for leave management?
- Leave management is secondary to the core business focus of an HRIS
- Limited policy configurability compared to purpose-built solutions
- Basic compliance coverage may not address all regulatory requirements
- Generic user experience not optimized for leave-specific processes
- Shallow integration capabilities with external systems
Co-Sourcing Models
Several newer platforms combine technology with human support, positioning themselves as “co-sourcing” solutions. While appealing to bandwidth-constrained HR teams, recent market feedback shows that both the service model and the underlying technology present challenges.
Potential strengths:
- Modern interfaces and user experience design
- Appeals to organizations seeking to try to reduce internal administrative burden
Common challenges reported:
- HR teams frequently report they’re still doing manual case management work or acting as intermediaries between employees and vendors.
- Co-sourcing can lead to inconsistent service delivery and confusion. Employees may receive conflicting updates or instructions when navigating between the platform and vendor reps, especially when communication protocols aren’t clearly defined.
- Employers often face long turnaround times, sometimes as long as several days, to get answers or resolve issues.
- Many organizations report inconsistent information-sharing when employees interact with vendor representatives.
- Some co-sourced models restrict visibility for HR business partners or don’t allow for workflow or communication customization.
- When responsibilities aren’t clearly defined, teams can struggle to know who owns what.
- Some co-sourcing vendors concentrate on specific regions or industries, leaving gaps for employers with distributed workforces navigating overlapping leave laws.
- Budget forecasting becomes more difficult, especially as leave and accommodations requests continue to rise year over year.
- What works for a 500-person team may not support the complexity of a 5,000-person workforce, particularly in healthcare, education, or public sector environments.
- Technology at some co-sourcing vendors is not designed for complex compliance tracking, often lacking robust policy libraries or automated workflows. This leaves HR teams vulnerable to errors and inconsistencies.
- Co-sourcing vendors may still be building out their legal expertise and process maturity. For employers managing risk under the FMLA, ADA, and PWFA, that can be a serious concern.
- Many co-sourcing vendors lack the peer networks, user groups, and HR-specific training that help mature teams stay current and connected.
Purpose-Built Leave Management Solutions
AbsenceSoft is a tool designed from the ground up specifically for leave and accommodations management, offering the deepest compliance coverage and most sophisticated automation capabilities.
Key strengths:
- Comprehensive compliance engines tracking 200+ federal and state labor laws
- Advanced approval workflows and automated case management
- Bi-directional integrations with major HRIS and payroll platforms
- Specialized accommodation modules for ADA, PWFA compliance
- Customer communities with live annual events and ongoing education programs
- Proven track records with dedicated leave management expertise
Considerations:
- Ensure seamless integrations with your particular HRIS systems
- Larger investment than manual workarounds or module extensions
“AbsenceSoft saved us hours upon hours of time. Being able to just go to one spot and see everything related to a case is just, I can’t even tell you how helpful that is.”
– Wendy Ayala, Benefits Supervisor at Cache Creek Casino Resort.
Why Manual or Traditional Approaches Fall Short
Many organizations start their search by looking to the familiar: the large HRIS platforms that promise to “do everything.” The reality? Leave management is often an afterthought in these comprehensive systems, lacking the depth needed to navigate today’s complex regulatory environment.
Consider this: There are over 200 federal and state leave laws that impact how organizations manage employee absences. From FMLA and the Americans with Disabilities Act (ADA) to state-specific requirements like California’s Pregnancy Disability Leave or New York’s Paid Family Leave, the compliance landscape is intricate and ever-changing. Generic HR modules simply cannot match the depth of software designed specifically for this challenge.
The best solution is a purpose-built leave management platform that integrates seamlessly with your HRIS system.
Key Evaluation Criteria for Leave Solutions
When evaluating leave management software, it’s crucial to understand the fundamental differences between solution types. Here’s a crash course in the biggest factors separating four key solutions:
- AbsenceSoft
- HRIS extensions
- Co-sourcing
- Outsourcing (not powered by AbsenceSoft)
A note on that last category: Many employers are looking to outsource leave management through third-party administrators (TPAs). It can be a strategic move, but one that must be made carefully. Employers depend on TPAs to reduce manual work, improve accuracy, and enhance the employee experience.
But not all TPAs are created equally. That’s why it’s key to evaluate TPAs carefully before making your final decision.
Employee Self-Service
- AbsenceSoft: Intuitive self-service portal with real-time status updates, mobile access, and comprehensive leave balance tracking.
- HRIS Extensions: Basic leave request forms within broader HRIS interface with limited leave-specific functionality.
- Co-Sourcing: Mixed technology and human touchpoints creating potential communication confusion.
- Outsourcing, not powered by AbsenceSoft: Manual processes requiring phone calls and email with minimal self-service options.
Compliance Management
- AbsenceSoft: Proprietary compliance engines automatically track 200+ federal and state laws with real-time updates and built-in safeguards.
- HRIS Extensions: Basic compliance coverage focused on major laws like FMLA with limited state-specific requirements and no ability for company policies.
- Co-Sourcing: Reliance on human intervention for compliance interpretation with potential for inconsistent guidance.
- Outsourcing, not powered by AbsenceSoft: Manual compliance tracking with delayed updates and higher risk of regulatory gaps and no ability for company policies.
Accommodation Support
- AbsenceSoft: Comprehensive ADA, PWFA, and accommodation workflows integrated with leave management.
- HRIS Extensions: Limited or no accommodation modules, requiring separate systems or manual processes.
- Co-Sourcing: Limited or no accommodation modules, requiring separate systems or manual processes.
- Outsourcing, not powered by AbsenceSoft: Manual accommodation processes often handled outside the leave system with extensive work needed by your HR team.
Integration Capabilities
- AbsenceSoft: Bi-directional integrations — file feeds and APIs — with all major HRIS and payroll platforms for automated data syncing.
- HRIS Extensions: Native integration within existing HRIS ecosystem.
- Co-Sourcing: Shallow integrations with basic data.
- Outsourcing, not powered by AbsenceSoft: Minimal integration options.
Analytics and Reporting
- AbsenceSoft: 24/7, on-demand, real-time advanced reports and dashboards with predictive insights, customizable reports, and trend analysis.
- HRIS Extensions: Basic reporting functionality with limited or no custom options or analytical capabilities.
- Co-Sourcing: Standard reporting with potential delays due to human processing requirements, limited or no custom reporting.
- Outsourcing, not powered by AbsenceSoft: Manual report generation with limited analytical depth and significant wait time.
What to Look for in a Platform and Provider
Now that you know what to expect from each type of leave management software, spend a little time familiarizing yourself with key features. Look for platforms that excel in these four areas.
Compliance Excellence
The foundation of any effective leave management system is its ability to ensure compliance with federal and state regulations. Look for platforms that offer comprehensive law coverage: support for FMLA, ADA, PWFA, and state-specific requirements. Solutions should feature compliance engines that calculate eligibility, determine entitlements, and ensure proper documentation.
Automation and Efficiency
Modern leave management software should eliminate manual processes wherever possible while supporting various types of leaves and promoting work-life balance for employees. With intelligent approval workflows, leave managers can automate routing based on leave type, duration, and organizational hierarchy. Automated notifications keep processes rolling by sending alerts to employees, managers, and HR.
Employee Experience
The best leave management systems improve the human experience during stressful life events. Platforms should reduce confusion and promote accessibility with intuitive interfaces, including mobile accessibility. Clear communication is crucial, too. Look for platforms that enable transparent processes and timely updates throughout the leave journey.
Scalability and Flexibility
Your leave management software should grow with your organization. Prioritize systems that offer configurable policies and integration flexibility. Multi-location support will allow your team to manage different policies across various jurisdictions.
Ongoing Support and Partnership
Implementation is only the starting line. The best providers offer strong post go-live support, including access to customer success teams, training resources, and user communities. Many HRIS or co-sourcing models fall short here, leaving HR teams without guidance once the system is live. Make sure your vendor offers a partnership model that continues to evolve with your needs.
The Risks of the Wrong Solution
Poor leave management software decisions create ripple effects throughout your organization:
- Compliance risk: Inadequate legal coverage can result in costly violations and legal exposure.
- Administrative burden: Manual processes and limited automation increase HR workload, and can even increase headcount costs.
- Employee frustration: Complex systems create stress and a poor experience during already difficult life events.
- Integration challenges: Poor connectivity with existing systems leads to data silos and duplicate work.
- Scalability issues: Solutions that don’t grow with your organization require costly replacements.
Why AbsenceSoft has Led the Way for More than a Decade
AbsenceSoft has received industry recognition through three consecutive HR Tech Awards for innovation in the Core HR/Workforce category, including the 2025 HR Tech Awards Best Innovative or Emerging Tech Solution. AbsenceSoft has also been recognized as a Top Vendor for Absence Management Software by Shortlister across multiple quarters and has been included in the Inc. 5000 list of America’s fastest growing private companies.
What distinguishes AbsenceSoft is its proprietary AbsenceSoft Compliance EngineTM (ACE), designed specifically to track FMLA and 200+ federal and state laws, providing automated updates when regulations change. This sophisticated system enables organizations to track FMLA compliance seamlessly while managing all other leave types through a unified platform.
Additionally, AbsenceSoft operates the only customer community in the leave management space, including live in-person annual events that bring together HR professionals for networking, best practice sharing, and continuing education.
The Intelligence-First Advantage
The most sophisticated leave management platforms like AbsenceSoft are beginning to incorporate AI and agentic learning to enhance decision-making and predictive capabilities at responsible points within processes — while leaving room for human touches. Organizations should evaluate vendors’ capabilities and roadmaps for automated leave, intelligent automation, and data-driven insights that can deliver proactive workforce optimizations.
Looking Ahead: The Future of Leave Management
The leave management software landscape continues to evolve rapidly. Organizations that invest in purpose-built, proven solutions position themselves to take advantage of emerging capabilities like:
- Advanced analytics and insights for workforce planning and tracking employee absence trends
- Predictive modeling to optimize staffing and resource allocation
- Clear ROI models to ensure benefits to your companies bottom-line
- Enhanced mobile experiences for the increasingly distributed workforce
- Deeper integration capabilities with payroll and HRIS platforms
The choice of leave management software is ultimately about partnership. While newer solutions may offer attractive pricing or modern interfaces, the complexity of leave management requires proven expertise, comprehensive compliance coverage, and demonstrated results.
To learn more about how AbsenceSoft can partner with you to transform leave management, schedule a demo today.