Pros And Cons of Employee Monitoring

Pros And Cons of Employee Monitoring

In today’s tech-powered workplace, bosses are keeping a closer eye on employees than ever before. They use advanced tools to track what we do, all in the name of boosting productivity and safety. But is it all sunshine and rainbows, or do we need to watch out for the downsides?

In this article, we’ll break down the pluses and minuses of employee tracking. Get ready for a rollercoaster ride through the pros and cons that might just change how you see your workplace!

What Is Employee Monitoring?

Employee monitoring refers to the practice of employers using various tools and technologies to observe and track the activities and behavior of their employees in the workplace. This can include monitoring computer usage, internet browsing, email communication, and even physical location in some cases. The goal is to improve productivity, ensure security, and maintain compliance, but it also raises questions about privacy and trust in the workplace.

Research on Employee Monitoring: What We Know So Far

Employee tracking isn’t a new concept. Interestingly, the practice of supervising employees dates back centuries, with some of the earliest forms involving tracking the duration of lunch or bathroom breaks taken by employees.

However, the interest in employee tracking practices has been on a steady rise ever since the COVID-19 pandemic and a wider acceptance of the remote workplace.

As per one report, there was a 75% increase in searches for employee monitoring software in March 2020 compared to the monthly average of 2019.

Indeed, with the transition to hybrid work models, a significant 85% of leaders find it challenging to have confidence in the productivity of their employees. 

And, according to another study conducted by ExpressVPN, nearly 80% of employers rely on monitoring software to keep tabs on employee performance and online activities.

Some of the most common forms of employee workplace supervision include:

 – and more

Pros of Employee Monitoring

Pros of Employee Monitoring for the Company:

Increased Productivity

Monitoring can help identify inefficient work habits, leading to improvements that boost overall productivity. As reported in the journal Social Cognitive and Affective Neuroscience, employees tend to perform more effectively when they are aware of being under observation.

Enhanced Security

Monitoring software grants companies the capability to access saved documents, track installed applications, monitor websites visited, and oversee messages sent on company-owned devices such as computers and mobiles. It extends its watchful eye over crucial business files, account details, and sensitive client data. By doing so, it serves as a protective shield for your company, guarding against insider threats, security breaches, and any suspicious activities.

Cost Efficiency

Introducing workplace surveillance tools or time tracking software translates into enhanced cost-efficiency. This is because, when employees maintain high productivity during their working hours, you, as an employer, are more likely to see a substantial return on your investment.


Employee monitoring plays a crucial role in ensuring compliance within the workplace. It serves as a valuable tool for enforcing company policies, maintaining adherence to industry-specific regulations, and meeting legal requirements.

By tracking employee activities, such as data access, communication practices, and resource utilization, it helps guarantee that employees are aware of and follow established guidelines. In sectors subject to rigorous regulatory frameworks, such as healthcare or finance, monitoring becomes particularly essential in safeguarding sensitive information and demonstrating due diligence.

Moreover, it serves as a risk mitigation strategy, reducing the likelihood of legal disputes or reputational damage stemming from non-compliance. The documentation and reporting capabilities of monitoring systems further contribute to maintaining transparency and proving compliance, offering companies both peace of mind and a defense in the face of audits or investigations.

Low Initial Investment

Investing in employee monitoring software doesn’t necessarily mean breaking the bank. Typically, you can easily find employee tracking solutions for under $150 per user per year. As is common with software, the price you’ll pay depends on your specific requirements, including the desired features and the number of licenses needed for your team. 

While most systems do not impose additional fees, it’s worth noting that there might be occasional expenses related to installation and IP renewals. Additionally, should you opt for add-ons, such as geolocation tracking or mobile licensing, these may incur additional charges.

Performance Evaluation

Monitoring provides valuable insights for performance evaluations and identifying areas where additional training or support is necessary.

By tracking and analyzing employee activities, it offers an objective foundation for performance assessments, ensuring fairness and precision in evaluations. Managers can pinpoint strengths, enabling tailored task assignments, while also identifying areas where additional training and support are necessary to address weaknesses.

This data-driven approach assists in setting realistic performance goals, fostering accountability, and facilitating constructive feedback and coaching. Furthermore, organizations can allocate resources efficiently, directing investments where improvement is most needed, all while using monitoring insights to recognize and reward outstanding performance.

Pros of Employee Monitoring for Employees:

Clear Expectations

Employee tracking plays a pivotal role in establishing clear job expectations and role clarity within organizations. It defines specific responsibilities and introduces performance metrics, providing employees with a precise understanding of their roles and performance benchmarks. 

This alignment fosters a sense of purpose and accountability, enabling efficient task prioritization and continuous improvement. Reducing ambiguity and conflicts contributes to a more harmonious and efficient work environment, ultimately enhancing both productivity and workplace cohesion.

Training Opportunities

Employee monitoring goes beyond tracking work; it also serves as a guide for identifying valuable training and development opportunities. This process begins by highlighting areas where employees may have skill gaps or areas that warrant improvement.

Armed with this data, organizations can offer personalized training and development programs tailored to individual needs, fostering a culture of continuous learning and growth. By efficiently allocating training resources to areas where improvement is needed the most, companies ensure a higher return on investment for their training initiatives. Ultimately, this approach leads to improved employee performance, benefiting both individuals and the organization as a whole.

Recognition and Rewards

Employee monitoring takes on an additional role in the workplace by offering a means to recognize and reward high-performing individuals. This recognition is grounded in objective performance metrics, ensuring fairness and impartiality.

By pinpointing employees who consistently excel, meet key performance indicators, or exhibit remarkable dedication, monitoring allows managers to provide tailored acknowledgment and rewards that align with each employee’s unique contributions.

This not only motivates the recipients but also inspires their colleagues, fostering a culture where hard work and excellence are celebrated. The resulting boost in morale, job satisfaction, and engagement benefits both individuals and the organization as a whole. 

Cons of Employee Monitoring

Cons of Employee Monitoring for the Company

Feelings of Distrust

Instead of boosting productivity, surveillance can have a detrimental impact on employee morale. It can foster feelings of mistrust among employees, which, in turn, may result in higher turnover rates. To address this challenge, it’s advisable to proactively communicate with your team about the use of monitoring software, making it clear that it’s a standard workplace policy rather than singling out individuals. This upfront transparency helps employees understand that monitoring is a companywide practice and can mitigate concerns about trust and privacy.

Privacy Concerns 

Excessive access can pose risks. With extensive access to employees’ data and digital activities, there’s a chance of unintentionally encountering personal information, such as bank details, medical records, or highly confidential emails. Moreover, in the event of a system breach, there’s a significant concern that employee privacy could be compromised or exploited.

False Positives

Workplace surveillance systems, while valuable, are susceptible to false positives, which can lead to unjust disciplinary actions and strained relationships. These systems, relying on algorithms, may inaccurately flag innocuous actions as violations. This can frustrate employees, erode trust, and hinder efficiency. To address this, organizations should maintain flexibility, employ human oversight, and prioritize open communication to ensure fair and judicious monitoring practices.

Reduced Job Satisfaction

Excessive supervision can harm job satisfaction by fostering perceptions of micromanagement. This can lead to stress, reduced autonomy, and lower trust. Job dissatisfaction can result in disengagement, reduced motivation, and higher turnover rates as employees seek more favorable workplaces. It can also deter potential recruits. Striking a balance between monitoring and autonomy, coupled with transparent communication, is crucial to maintaining job satisfaction, reducing turnover, and improving recruitment efforts.

Cons of Employee Monitoring for Employees

Privacy Invasion

Employee monitoring, when viewed as an invasion of personal privacy, can engender discomfort and stress among employees. They may feel constantly scrutinized, even in their non-work activities, leading to unease and blurring the lines between work and personal life. This heightened awareness can elevate stress levels and strain trust between employers and employees, creating a culture of suspicion. To address these issues, organizations should clearly communicate monitoring policies, emphasizing their rationale and boundaries, and respect employees’ personal space to foster a more balanced and trusting workplace culture.

Increased Stress

The perpetual awareness of being under surveillance can escalate stress levels and contribute to heightened anxiety among employees, ultimately impacting their overall well-being and job performance. The persistent sense of scrutiny, even in routine tasks, can create a persistent state of tension, making it challenging for employees to relax and focus on their work. This heightened stress not only affects their mental and emotional health but can also lead to decreased productivity and job satisfaction. Addressing these concerns and fostering a more supportive and less intrusive work environment is vital for maintaining employee well-being and performance.

The perpetual awareness of being under surveillance can escalate stress levels and contribute to heightened anxiety among employees, ultimately impacting their overall well-being and job performance. The persistent sense of scrutiny, even in routine tasks, can create a persistent state of tension, making it challenging for employees to relax and focus on their work. This heightened stress not only affects their mental and emotional health but can also lead to decreased productivity and job satisfaction. Addressing these concerns and fostering a more supportive and less intrusive work environment is vital for maintaining employee well-being and performance.

As per the Electronic Communications Privacy Act of 1986 (ECPA), employers are generally allowed to monitor activity on devices provided to employees. This monitoring may encompass files, downloads, internet usage, and social media activity. It’s important to note that specific guidelines regarding employee monitoring may differ from state to state (and country to country outside of the United States)

In the United States, at the federal level, companies aren’t obligated to inform employees about monitoring activities. However, the requirement for worker consent can vary depending on state laws and regulations.

Certainly, while legality and monitoring laws are significant factors to consider, placing ethics at the forefront is paramount. The foundation of trust within a team should be upheld and respected above all else. It ensures that managers do not inadvertently intrude upon employees’ privacy or foster a hostile work environment. The reassuring aspect is that it is entirely feasible to monitor employees’ digital work activities without compromising their trust or privacy. Here’s a guide on how to achieve this:

  • Ethical employee tracking transcends data collection; it revolves around its purposeful utilization. Ensure that data is gathered from work computers with a clear objective of enhancing productivity. Being candid with your employees about how their data will be harnessed to benefit them. 
  • Transparency is paramount. Failing to be forthright about your monitoring policies can breach your team’s expectations of privacy, regardless of whether they work remotely or in-office. Drawing inspiration from ethical monitoring practices followed in the EU, it’s crucial to communicate what data is gathered, how it will be utilized, and who will have access to it. Ideally, your workforce analytics solution should allow individuals to access their own work patterns, fostering autonomy in time management.
  • Selective monitoring can harm company culture, employee morale, and the perception of fairness. Employee monitoring shouldn’t be reserved solely for remote workers. All employees, regardless of their location, can benefit from productivity insights gleaned from user activity data.

Examples of Ethical Employee Monitoring

Here are a few examples of how companies can implement ethical supervision practices in the workplace:

Performance Dashboards: A marketing agency provides its employees with personalized performance dashboards that display key metrics like client satisfaction ratings, project completion rates, and revenue generated. Employees can access these dashboards to track their own progress and identify areas for improvement, promoting personal responsibility and professional growth.

Transparent Time Tracking: An IT company implements time tracking software that transparently records hours spent on different tasks and projects. Employees are informed about the purpose of the tracking, and they have the ability to review and verify their recorded hours. This practice ensures accurate billing for clients while respecting employees’ work hours.

Regular Feedback Sessions: A retail chain uses video surveillance to monitor employee-customer interactions for quality control purposes. However, they conduct regular feedback sessions with employees to provide coaching and constructive feedback, helping them improve their customer service skills.

Health and Well-Being Support: A tech startup monitors employee workloads to identify signs of excessive stress or burnout. When potential issues are detected, the company offers additional support, such as access to stress management workshops or flexible work arrangements to improve employee well-being.

Employee Recognition Program: An e-commerce company uses monitoring data to identify high-performing customer service representatives who consistently maintain high customer satisfaction scores. These employees are recognized and rewarded through an employee recognition program, fostering motivation and a culture of excellence.

Types of Employee Monitoring Tools

There are lots of different variations when it comes to employee monitoring tools — and some companies go as far as creating custom solutions that include features that best match their activities and teams. With that, the most popular types of employee monitoring tools include the following: 

  • ManualTime trackers: time tracking tools generally imply minimal supervision and simply monitor the time employees spend on different tasks via timesheets. 

Digital Activity Trackers:

These are software or tools that capture and log various digital activities of individuals, such as keyboard inputs, mouse movements, application usage, and web browsing habits. These can be further subdivided into:

  • Activity trackers: these are simple tools that monitor employee activity via key logging and mouse movements. These can be further subdivided into: 
  • Web activity trackers: these tracking tools focus on monitoring employees’ internet usage during work hours. They can track websites visited, time spent on each site, and can help organizations ensure that employees are using the internet for work-related tasks. 
  • Tools with video and screenshot records: these advanced activity tracking tools go beyond data logging and capture visual records of employees’ computer screens through screenshots or video recordings. 
  • Application usage tracking: application usage tracking tools specifically monitor the software applications and tools employees use throughout the workday. 

Email monitoring software: these programs are designed to monitor email communications to ensure compliance with company policies and regulatory requirements. 

Employee engagement software: these tools are tasked with tracking employee engagement and satisfaction levels through surveys, feedback tools, and sentiment analysis.


Can Employee Surveillance Improve Productivity Without Harming Employee Morale?

Yes, when implemented transparently, ethically, and with a focus on productivity improvement rather than micromanagement, workplace tracking can enhance productivity while maintaining employee morale.

What Steps Can Organizations Take to Address the Cons of Employee Supervision?

To address the cons, organizations can communicate transparently, establish clear boundaries for monitoring, provide training and support, ensure data security, and prioritize employee well-being.

How Can Companies Strike a Balance Between Monitoring and Privacy?

Striking a balance involves clearly defining the purpose of monitoring, obtaining consent where required, minimizing invasive practices, providing access to personal monitoring data, and respecting personal time and boundaries.

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