HR Cycle

Overview

Below is a comprehensive, business-focused explanation of the HR Cycle in Dafater, written for managers, HR teams, and business owners.

HR Cycle – Business Overview

1. Overview of the HR Cycle and Its Importance

The HR Cycle in Dafater represents the complete lifecycle of managing people in an organization—from onboarding employees, tracking their working time, managing leave and expenses, to calculating and paying salaries.

This cycle ensures: - Employees are properly onboarded and assigned roles - Attendance and working hours are accurately recorded - Leave and expense requests are controlled and approved - Salaries are calculated correctly and paid on time - Compliance with internal policies and labor regulations

A well-managed HR Cycle improves employee satisfaction, cost control, payroll accuracy, and management visibility into workforce performance.

2. Step-by-Step Business Process Flow

Step 1: Employee Onboarding

An employee is created in Dafater with personal, job, and compensation details.
The employee becomes eligible for attendance tracking, leave, payroll, and expense claims.

Business outcome:
The organization formally recognizes the employee as part of the workforce.

Step 2: Shift Assignment and Work Scheduling

Employees are assigned Shift Types (e.g., Morning Shift, Night Shift, Rotational Shift).
Shifts define expected working hours, break times, and overtime rules.

Business outcome:
Clear expectations of when employees are required to work.

Step 3: Attendance and Check-ins

Employees record Employee Checkins (in and out).
Dafater converts check-ins into Attendance records.
Attendance reflects Present, Absent, Half-Day, Late, or Overtime status.

Business outcome:
Accurate tracking of employee presence and working hours.

Step 4: Leave Management

Employees submit Leave Applications (e.g., annual leave, sick leave).
Managers review and approve or reject leave requests.
Approved leave automatically affects attendance and payroll.

Business outcome:
Planned and controlled employee absences without disrupting operations.

Step 5: Expense Management

Employees submit Expense Claims for business-related costs (travel, meals, supplies).
Claims go through approval before reimbursement.

Business outcome:
Transparent and auditable reimbursement of employee expenses.

Step 6: Payroll Processing

Attendance, leave, and approved expenses are consolidated.
Payroll Entry is created for a pay period (monthly, bi-weekly, etc.).
Dafater generates individual Salary Slips for each employee.

Business outcome:
Accurate salary calculation based on actual work, leave, and entitlements.

Step 7: Salary Payment and Records

Approved salary slips are paid.
Payroll records are stored for reporting, audits, and compliance.

Business outcome:
Employees are paid correctly and on time, maintaining trust and compliance.

3. Key Documents Involved and Their Role

Document	Business Role
Employee	Master record containing employee identity, job role, and salary structure
Shift Type	Defines working hours, shifts, and attendance rules
Employee Checkin	Records actual in/out time of employees
Attendance	Summarizes daily presence based on check-ins and shifts
Leave Application	Manages planned employee absences
Expense Claim	Tracks business-related expenses for reimbursement
Payroll Entry	Groups salary processing for a specific period
Salary Slip	Final salary calculation for each employee

4. Business Prerequisites and Setup Requirements

Before running the HR Cycle smoothly, the organization should ensure:

Employees are properly defined with:
- Department
- Job role
- Salary details
Shift Types reflect actual working patterns
Leave policies are clearly defined (annual, sick, unpaid, etc.)
Expense reimbursement rules are communicated
Payroll periods and approval workflows are established

Business tip:
Clear policies reduce disputes and manual corrections later.

5. Common Business Scenarios and Use Cases

Scenario 1: Office-Based Staff

Fixed shift timings
Daily check-ins generate attendance
Monthly payroll based on attendance and leave

Scenario 2: Shift-Based or Factory Workers

Multiple shift types
Overtime calculated from check-ins
Payroll reflects extra hours worked

Scenario 3: Sales or Field Employees

Frequent expense claims
Attendance may be flexible or shift-based
Payroll includes reimbursements

Scenario 4: Leave-Heavy Periods (Festivals or Year-End)

Increased leave applications
Managers plan staffing accordingly
Payroll adjusts automatically

6. Best Practices and Important Considerations

Ensure employees check in consistently to avoid payroll disputes
Review and approve leave and expense claims promptly
Lock payroll periods after salary processing to prevent changes
Regularly audit attendance and salary slips
Communicate HR policies clearly to employees

Best practice:
Always finalize attendance and leave before running payroll.

7. How Documents Flow Through the HR Cycle

Employee is created
Employee is assigned a Shift Type
Employee records Checkins
Checkins generate Attendance
Employee submits Leave Applications and Expense Claims
Approved attendance, leave, and expenses feed into Payroll Entry
Salary Slips are generated and paid

This structured flow ensures accuracy, accountability, and transparency across the HR function.

Conclusion

The HR Cycle in Dafater provides a complete, integrated approach to managing employees from onboarding to salary payment. By following this cycle, organizations can streamline HR operations, reduce errors, ensure compliance, and build a positive employee experience.

A disciplined HR Cycle is not just an administrative necessity—it is a strategic foundation for business growth.

This document describes the hr cycle process and the related document types.

Employee
Attendance
Leave Application
- Apply / Approve Leaves
Salary Slip
Payroll Entry
Expense Claim
Employee Checkin
Shift Type

Process Flow

The typical flow for this cycle is:

Create Employee records
Set up Shift Types and schedules
Record Employee Checkins for attendance
Create Attendance records
Submit Leave Applications
Process Expense Claims
Create Salary Structure and assignments
Generate Payroll Entry
Create Salary Slips for employees