Employee monitoring for
better transparency productivity accountability

Did you know that experts predict that 73% of all teams will include remote workers by 2028? 

Many businesses already employ team members outside of a traditional office setting, so remote employee monitoring is necessary to ensure work gets done. But how can you find the sweet spot between remote employee productivity and micromanagement?

In this guide, we'll explain the pros and cons of employee monitoring (also known as proof of work software) for everyone on your team. We'll also cover the legal considerations, how to choose the right software for your business, how to implement it well, and more.

Let us clarify things — for both team members who are unsure of this type of software and managers who are considering it.

Employee monitoring is a growing practice in which companies use digital tools to track work, employee performance, and work progress. 

Businesses use different monitoring methods to measure productivity, track attendance, assess behavior, ensure security, and collect proof of hours worked. There's a wide range of employee monitoring, from proof of work capture to outright surveillance.

Let’s look at the most popular approaches.

Employee monitoring varies greatly depending on the software and the industry you’re in. Different work monitoring tools offer a range of capabilities and data.

These days, most remote employees are familiar with the idea of work being tracked. However, many are opposed to features that cross over into micromanagement and feel like an invasion of privacy.

Let's look at the different types of employee monitoring to better understand how the technology works and can be applied to different areas of your business. 

• Time tracking. Time tracking is one of the most basic monitoring features. It's crucial to track accurate hours and payments and ensure your business complies with labor laws. 
  

• App and URL monitoring. Monitoring websites and apps to identify distractions, highlight productive tools, and spot gaps in your tech stack.
  

• Screenshots and video. The best employee monitoring tools provide fully customizable screenshot capabilities with the option to remove, blur, or adjust the frequency of screenshots. You might see video monitoring in high-compliance organizations, but it's too intrusive for most companies. 

• Keyboard activity. Some employee monitoring tools track keyboard activity to ensure employees are actively using their computers, but this is not the same as keylogging. Be wary of the difference, as keylogging software is often used to steal passwords and other sensitive data. 

• Location tracking. Field teams can benefit from GPS technology that allows them to plan routes, provide better ETAs to clients, and create geofenced job sites for automated time tracking. 

• Email monitoring. Email monitoring can prevent data leaks in high-compliance environments, but its invasive nature adds stress and privacy concerns for most employees.
  

• Phone and voicemail monitoring. Call centers, sales teams, and customer service reps may use phone recordings to improve call performance, resolve complaints, and reduce resolution times. 

Entrepreneurs, executives, team leaders, and employees can all gain something from employee monitoring software.

Let's dive into the most common benefits to decide which method suits you.

Pros of Employee Monitoring

• Greater efficiency and productivity. Tracking time and activity helps identify wasted hours and improve focus. We waste eight hours per week at work. An HBR study found that 71% of executives cite meetings as inefficient.
  
  

• Better transparency. Performance monitoring allows managers to spot bottlenecks and intervene before it’s too late. They can also use this data for future project planning.
  
  

• Useful employee insights. See when employees are underutilized or gauge burnout with employee insights.

• Security. Employee monitoring is more than just seeing what employees are working on. Location tracking helps keep field teams safe, while desktop and web-based monitoring reduces the risk of data breaches, malware, and other cyber threats.
  
  

• Better task delegation. Increased visibility makes assigning work based on individual strengths, goals, and availability easier. This can help increase productivity and lead to rapid employee growth.
  
  

• Streamlined administration. Employee monitoring eliminates many guesswork about hours, task completion, and productive and unproductive tools. Automating admin work frees up time for strategic planning and other high-impact work.

Cons of employee monitoring

• Increased stress and lower morale. Monitoring can increase anxiety, damage trust, and decrease motivation if not implemented correctly.
  
  

• Confusion or lack of clarity. Vague employee monitoring policies can lead to mistrust and miscommunications.

• General legal overview. Employee monitoring is generally legal in the U.S. as long as it is disclosed. If employees are working from corporate-owned devices, their employer may not need to disclose employee monitoring. As always, check your state and local laws if you plan to monitor employees or feel you are being unjustly monitored.
  
  

• Federal contractors and public companies. Specific record-keeping and privacy laws may limit or prohibit federal contractors or public companies from monitoring their employees.
  
  

• International considerations. Stay abreast of international employee monitoring laws if you plan to monitor employees outside the U.S.

Types of monitoring and legal considerations

• Computer activity. While employers can monitor company-owned devices and networks without consent, they should disclose what’s being tracked or risk damaging trust with their employees. They’ll need legal consent to monitor personal devices.
  
  

• Phone, emails, and instant messaging. The ECPA generally prohibits the interception of emails, phone calls, and IMs without the employee's consent. However, emails sent through work addresses are generally considered company property.
  
  

• CCTV. Closed-circuit television (CCTV) monitoring is legal on the federal level, but state-specific legislation restricts audio recording and notice requirements in some states.
  
  

• Mail. Employers can legally open mail addressed to the workplace regardless of the addressee.
  
  

• Location and vehicles. Businesses can legally track the location of company-owned vehicles and devices. If employees use their own personal vehicles and equipment, the employer must get consent and can only track them for business-related purposes.
  
  

• Social media content. While employers can prohibit social media use during work hours, they can’t access private messages or content that has not been made public. There is currently no federal law limiting social media monitoring.

Ethical considerations

Employee monitoring is generally legal, and there’s no legal requirement to inform employees they’re being monitored when working on company-owned devices — but that doesn’t account for the ethical component. 

While you can monitor employees on company-owned devices, vehicles, and other tools, excessive monitoring can damage employee morale. Getting buy-in from employees can help improve employee morale, reduce turnover, and save your business money in the long run.

Just because there are so many ways to streamline work tracking, it doesn’t mean you need to use them all. Consider the following to narrow down your list:

• Will it help our teams be more productive?

• Will it help our business avoid liabilities?

• Will it help our business spot problems before they develop?

Here are a few steps to help you get started.

1. Consider the type of team

• If your team is all within one office, some of the remote work features like screenshots or activity levels are less crucial. You can typically see if people are getting their work done or not.
  
  

• If your employees are constantly traveling to meet clients, using a GPS tracking system can help you keep track without having to call everyone.
  
  

• If most or all of your employees are paid by the hour, consider a time tracking app that has payments integrated to speed up the timesheet process.

2. Consider each person's role

You shouldn’t check in on every employee in the same way. For example, if you have designers and writers who spend most of the day at their desks, you might want to use screen capture software.

Account executives who are out at client meetings or pitching prospects might be better suited for GPS time tracking as it can account for travel time and meeting duration.

These roles might also need expense reporting features built-in.

Knowing this before you choose your software will ensure you have the right features for all of the different roles on your team.

3. Look at integration capabilities

Of course, you’ll also want to account for the type of team you run.

Finally, before you sign on any dotted lines, look at the potential system’s integrations.

For example, if you use Gusto for payroll, you can integrate with Hubstaff for faster, easier payroll. Think about what you want to connect with your time tracking or monitoring app and search their integrations list prior to signup.

Of course, you’ll also want to account for the type of team you run.

1. Get buy-in

When you’re the boss, you don’t need your team’s permission to use a new system. But getting it will make your life way easier. Your employees will be much more likely to adopt a system they pre-approved, and you won’t suffer a dip in trust. Here are some 

How do you get buy-in? Here are some tips to get employees to track time and buy in to monitoring features. 

2. Explain the benefits

A convincing presentation will show your staff that there are benefits for everyone. Here are some ideas to get you started:

• Accurate, timely payments through automated timesheets that require little effort. 

• Performance insights to identify areas of improvement, showcase strengths and increase autonomy. 

• Reassurance that workloads will be more balanced and team members will be held accountable if they fail to pull their weight. 

• Increased recognition and the ability to negotiate for promotions and raises with performance data. 

3. Have a written policy

After your employees sign off on a tool, it’s time to write out your official policy.

Having a public policy shouldn't be an issue if your employees vetted the tool firsthand. Publishing the software you are using and why for all to see will help avoid potential legal or trust issues.

There are several characteristics of a good policy. It should:

• Be written in a straightforward way

• Cover each tool being used

• Explain how regularly the monitoring will take place

• Share the kind of information being collected

• Articulate what will be done with that information

• Address how long that information will be stored

• Require each employee to acknowledge that they have read and understood it

• Invite employees to ask questions or seek clarification

• Be distributed or published before the software is implemented

• Include any relevant legal provisions

• Address what employees should do if they feel the policy is being violated (or if they have suggestions to improve it)

4. Drive adoption

Once you have the support from your teams and a published policy, you can move forward with implementation.

Here are some steps to do it well.

• Hold training sessions. Train employees on how to use time tracking and employee monitoring software. Share engaging tutorials, explain how users will have full access to their data, and make it fun with incentives like gift cards.
  
  

• Request feedback. Create an open dialogue around employee monitoring and welcome consistent feedback on your employee monitoring policy. You may find yourself making frequent tweaks, but that’s a lot better than dealing with rising attrition.
  
  

• Show gratitude. It's one thing to welcome input, but it's another to show your appreciation for it. Acknowledge concerns and invite feedback to improve your processes and maintain trust across your organization.