Managing employee leave with spreadsheets and emails might seem like the cheapest option for a small business. But when you add up the time spent checking holiday balances, chasing approvals and correcting records, the real cost may be higher than you think.
Leave management software comes with a subscription fee, but it could reduce the time your team spends on these everyday tasks.
In this guide, we’ll compare the estimated cost of managing leave manually with the cost of HR LeaveHub and explain how to decide whether the investment makes sense for your business.
Your Holiday Spreadsheet Is Free. Managing It Isn’t.
Excel can be a practical way to track employee holidays when you have a small team and straightforward arrangements. The challenge is that someone still needs to manage the process.
Every leave request may involve:
- Checking the employee’s remaining annual leave.
- Reviewing existing bookings and team availability.
- Sending the request to a manager for approval.
- Updating the spreadsheet once a decision is made.
- Confirming the outcome with the employee.
- Recording cancellations or changes to approved holidays.
Each task might only take a few minutes. Across multiple employees and requests throughout the year, however, the time can add up.
There is also the time spent answering questions about remaining leave, checking old emails and resolving discrepancies when records don’t match.
If these tasks are taking up too much of your team’s time, read our guide to the signs you’ve outgrown manual leave management.
How Much Does Manual Leave Management Cost?
The cost of manual leave management rarely appears as a separate expense. Instead, it is part of the time your business owner, managers or administrative staff spend maintaining records and processing requests.
Let’s use a simple example.
Suppose a business with 20 employees spends a combined 40 hours a year managing leave. This includes checking balances, processing requests, updating records and resolving issues.
If the average staff cost is £25 per hour in the UK or €30 per hour in Ireland, the annual cost of that time is:
| Estimated annual cost | UK | Ireland |
| Time spent managing leave | 40 hours | 40 hours |
| Estimated staff cost per hour | £25 | €30 |
| Annual value of staff time | £1,000 | €1,200 |
| Annual HR LeaveHub subscription | £720 | €850 |
These figures are illustrative estimates, not guaranteed savings. They assume 40 hours of annual administration and use the stated hourly staff costs. Actual costs will depend on your business, and the subscription prices should be checked against current rates.
The comparison does, however, give you a starting point for deciding whether software could be worthwhile.
How Much Time Does HR LeaveHub Need to Save to Pay for Itself?
Rather than assuming software will eliminate all manual administration, it is more useful to calculate how much time your business would need to recover to cover the subscription cost.
Using the same estimated staff costs, here’s the break-even calculation for a business with 20 employees.
| Break-even calculation | UK | Ireland |
| Annual subscription | £720 | €850 |
| Estimated staff cost per hour | £25 | €30 |
| Hours to break even each year | 28.8 | 28.3 |
| Hours to break even each month | 2.4 | 2.4 |
Based on these assumptions, the business would need to save approximately 2.4 hours of staff time each month for the value of that time to match the annual subscription cost.
That doesn’t mean the software will automatically save this amount. The result will depend on how your business currently manages leave, how many requests you process and how much administration the system reduces.
You should also consider any setup time and the tasks that will still need to be handled manually.
The useful question is whether your team could realistically spend around two and a half fewer hours each month checking balances, updating records and managing requests.
If so, the subscription may be worth considering. Any additional time saved could increase the value of the investment.
How Can HR LeaveHub Help Reduce Administration?
HR LeaveHub brings employee leave requests, approvals, balances and records together in one system. For small businesses, this can reduce the need to manage the same information across spreadsheets, emails and separate records.
Employees can check their own leave balances
Employees can view their remaining annual leave through the self-service system rather than contacting a manager every time they need to check their entitlement.
This can reduce repetitive enquiries and make it easier for employees to plan their holidays.
Managers have a central place for requests
Managers can review and respond to leave requests in one place instead of searching through email conversations and updating separate spreadsheets.
This gives the team a clearer process for handling requests and helps reduce the risk of overlooking them.
Leave records are easier to access
Keeping leave information together makes it easier to review balances, check bookings and refer back to previous requests.
It can also reduce the time spent looking for the latest version of a spreadsheet or checking whether a record has been updated.
Team availability is easier to see
Having a central view of booked leave helps managers plan workloads and identify potential clashes before approving requests.
This can be particularly useful for small businesses where several employees cover similar responsibilities.
Different working patterns can be managed in one system
HR LeaveHub supports different leave entitlements and working patterns, including part-time arrangements and teams across the UK and Ireland.
The relevant settings still need to be configured correctly for each employee, but a central system can reduce the need to maintain separate holiday trackers.
Is Leave Management Software Worth It for a Team of Five or Ten?
You don’t necessarily need a large workforce to benefit from leave management software. The more important factors are how often employees request leave, how complex your arrangements are and how much time your team spends maintaining records.
Based on the subscription figures used in this article, the estimated annual costs are:
| Number of employees | UK annual cost | Ireland annual cost |
| 5 | £180 | €212.50 |
| 10 | £360 | €425 |
| 20 | £720 | €850 |
| 50 | £1,800 | €2,125 |
These prices are based on the supplied figures and should be confirmed against HR LeaveHub’s current pricing before publication.
For a small business with straightforward leave arrangements and very few requests, a spreadsheet may be sufficient. If managers regularly chase approvals, answer questions about balances or correct errors, software may offer more value.
Consider how much time your team currently spends on leave administration, rather than looking at employee numbers alone.
Excel vs Leave Management Software: Which Is Better?
Excel is free and can work well when a business has a small team and a simple process. However, it relies on someone keeping the information accurate and up to date.
Dedicated leave management software brings requests, approvals, balances and employee records together, giving employees and managers a more structured way to manage leave.
The choice isn’t simply between a free spreadsheet and a paid subscription. It’s between the ongoing time spent managing leave manually and the potential value of reducing that workload.
Before making a decision, consider:
- How many hours your team spends managing leave each month.
- How often employees ask about their remaining balance.
- Whether requests or approvals are missed.
- How much time is spent correcting errors.
- Whether you need to manage different working patterns or employee entitlements.
You can also read our guide to common leave management mistakes and how to prevent them.
See Whether HR LeaveHub Is Right for Your Business
The best way to decide whether leave management software is worth the investment is to see how it fits your existing process.
HR LeaveHub gives small businesses a central place to manage employee leave requests, approvals, balances and team availability.
With a free 14-day trial, you can explore the system and assess whether it could reduce the time your team spends on administration.
Ready to take a closer look?
Start your free 14-day trial or book a demo to see how HR LeaveHub works.
Frequently Asked Questions
Is leave management software worth it for a small business?
It can be, particularly if managers spend significant time checking balances, processing requests and maintaining records. Compare the subscription cost with the value of the staff time you could realistically save to decide whether it makes sense for your business.
How much does leave management software cost?
Costs vary by provider, employee numbers and features. Using the figures in this article, HR LeaveHub would cost an estimated £720 or €850 annually for a business with 20 employees. Check current pricing before making a decision.
Can a small business manage holidays using Excel?
Yes. Excel may be sufficient for a small team with straightforward leave arrangements. However, someone still needs to maintain the records, process requests and check balances. Software may be more useful as the workload grows.
How much time would software need to save to cover the subscription?
Using the estimated prices and staff costs in this article, a business with 20 employees would need to recover approximately 2.4 hours of staff time each month to match the annual subscription cost. Actual savings depend on the business’s existing process and how much administration the software reduces.
Can I try HR LeaveHub before paying for a subscription?
HR LeaveHub offers a 14-day free trial, according to the current article details. You can use the trial to explore the system and assess whether it suits your business. Confirm the trial terms before publishing.
