How to set up an approval matrix

List every request that needs approval

Start by writing down every HR request that needs someone's yes before it happens or before it is paid. Most companies find more than they expected, including a few that are approved informally on phone calls with no record at all.

• Leave, attendance corrections, work from home and on duty
• Overtime and shift swaps
• Probation outcomes: confirm, extend or not confirmed
• Job requisitions and offers above the approved range
• Salary revisions and promotions
• Salary advances and reimbursements
• Resignation acceptance, early release and notice waivers
• Full and final settlement

Set approvers, limits and turnaround times

For each request, name the first and second approver, any rupee or day limit that changes the approver, and the time allowed for a decision. Keep approvers to people who have the information to decide. The worked example below comes from a 500-person manufacturer in Pune; your limits will differ.

• Leave and attendance corrections: reporting manager, then HR, within one working day
• Overtime: reporting manager, then HR, reviewed every week
• Salary advance up to ₹25,000: department head, then finance, within three working days
• Offer above the approved range: HR head, then business head, within two working days
• Full and final settlement: HR, then finance, in time to pay within two working days of the exit

Fit the matrix to your HR software

Check how your software routes approvals before you design anything elaborate. Many systems use a fixed chain for everyday requests. In ZeniaHR, leave, attendance corrections, work from home and on duty requests, overtime and shift swaps go to the reporting manager and then HR, each acting on their own step, and the company head can decide any step. That makes accurate reporting lines the most important part of the matrix. Approvals for money, such as advances and offers above range, stay in your documented finance process. See access control and approvals.

Backups and escalation

Every approver is sometimes on leave. Decide in advance who covers, and write it into the matrix rather than leaving it to a message sent at the last minute. Set an escalation rule too: when a request passes its turnaround time, it goes to the approver's manager or to HR. Review pending approvals every week, and treat a manager who regularly sits on requests as a performance issue.

• Three or four approval levels for routine leave
• Approvers who lack the information to decide
• No turnaround time, so requests wait indefinitely
• Approvals on WhatsApp with no record
• Exceptions granted without a written reason

Step by step

1. List all request types. Write down every HR request that needs approval, including the ones currently approved informally on calls or messages.
2. Decide why each approval exists. For each approver, note what they check: budget, workload, policy or compliance. Remove approvers who add no check.
3. Set limits and turnaround times. Add rupee or day limits where the approver changes, and a decision deadline for every request type.
4. Name backups for every approver. Record who approves when the primary approver is on leave or travelling, and how the handover is made.
5. Match the matrix to your system. Map each request to how your HRMS routes it. In ZeniaHR, everyday requests follow the reporting manager, then HR, so keep every employee's reporting manager correct.
6. Publish the matrix. Share it with all managers and employees in the handbook or intranet, with examples of common requests.
7. Review pending approvals weekly. Check what is waiting and for how long. The ZeniaHR dashboard shows six approval queues: leave, corrections, WFH and on duty, overtime, shift swaps and probation.
8. Revisit the matrix yearly. Update limits for inflation and structure changes, and remove steps that caused delays without catching problems.

Frequently asked questions