Employee monitoring software has become a critical consideration for businesses managing remote and hybrid workforces. Since the pandemic, employers around the world have needed to change. They’ve had to shift how their employees operate. Remote work is very much here to stay. Organizations and employees can both benefit from the work-from-home and hybrid work revolution.
Cost savings is a driver for supporting remote work. Employee morale and productivity also can be higher when employers grant this flexibility.
A majority of organizations support some type of remote work. Statistics show that:
- 16% of companies are completely remote
- 40% support hybrid office/remote working
- 44% don’t allow employees to work remotely
While there are benefits, there are also challenges to this new environment. Employers worry about the cybersecurity risks of remote teams. Managers can find it more challenging to make sure employees are doing what they should do.
The remote and hybrid work environment has led to the rise of employee monitoring tools. These tools have mixed reviews from employees.
What Is Employee Monitoring Software?
Employee monitoring software tracks digital movements and workplace activities. Modern employee monitoring software can include everything from general clock-in clock-out tracking to taking screenshots of an employee’s computer several times per hour
Tracking tools like Hubstaff and BambooHR track many activities on a person’s computer. The information is then sent in a daily or weekly report to the company.
Items that these tools can track are:
- Time clock
- Keyboard activity
- Keystrokes
- Mouse activity
- Websites visited
- Screenshots of the desktop
- Apps used and how long in use
The most invasive of tools can even track the sounds and video of the employee. Tracking can be visible, so the employee knows about it or hidden from the employee. It depends on the tool used and the ethical considerations of the employer.
This type of monitoring can benefit an organization worried about “productivity theft.” But it can also alienate good employees and torpedo morale and trust. We’ll go through the pros and cons to weigh before you set up this type of system.
-Updated October 2025-
The Current State of Employee Monitoring Software in 2025
The employee monitoring software market has reached mainstream adoption, with approximately 80% of businesses now employing some form of workforce monitoring. This dramatic growth was accelerated by the shift to remote work during the COVID-19 pandemic, which drove managers to adopt digital surveillance tools for visibility and accountability. By early 2025, 76% of North American companies and 64% of organizations globally reported using employee monitoring solutions. Gartner predicts that nearly 70% of large employers will monitor their employees in some way by 2025, a sharp increase from pre-pandemic levels. While this surge in monitoring aims to enhance productivity and prevent time theft, it has also sparked ongoing debates over privacy, stress, and employee trust, making transparency and balanced policies more critical than ever. For more detailed statistics and insights, see the Flowace 2025 Employee Monitoring Statistics Report.
Modern employee monitoring software has evolved beyond simple time tracking. Today’s platforms integrate artificial intelligence and machine learning to analyze work patterns, predict burnout risks, and identify productivity trends. Modern employee monitoring software has evolved beyond simple time tracking. Today’s employee monitoring software platforms integrate artificial intelligence and machine learning to analyze work patterns, predict burnout risks, and identify productivity trends. However, this technological advancement has sparked important conversations about employee privacy rights, data protection regulations like GDPR and CCPA, and the ethical boundaries of workplace surveillance.
As organizations continue to adopt employee monitoring software, understanding both the benefits and drawbacks becomes essential for making informed decisions that balance productivity goals with employee wellbeing and trust. The key is finding solutions that support business objectives without creating a surveillance culture that drives away top talent.
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Pros of Activity Monitoring Tools
Employee monitoring software offers several advantages when implemented correctly:
Helps Managers Understand How Employees Spend Their Day
One feature of many tracking tools is the ability to track time by project. This helps managers understand where employees are prioritizing their time. Knowing how much time employees spend on a project helps with ROI projections.
Reduces Non-Work Activities During Working Hours
One thing that employers worry about with remote employees is that they will waste time. A manager doesn’t want to pay someone only to find out the employee spent half their time on Facebook.
About half of monitored employees spend 3+ hours per day on non-work activities. When employees know that their boss is monitoring their app usage, they’re less likely to goof off.
Can Be an Easy Way to Track Time for Remote Workers
Smaller companies that work with fully remote teams may find tracking tools convenient. Employees or freelancers can track their time at the click of a button. Employers can put an hour-per-week cap on time. They can also manage payments automatically through the app.
Cons of Activity Monitoring Tools
Despite its benefits, employee monitoring software also presents significant challenges:
Hurts Employees’ Morale & Productivity
Many employees feel they are put in a cage when monitoring is introduced. Morale can plummet, which takes productivity along with it.
Instead of focusing on work completely, various thoughts go through employees’ minds. Such as, “If I think about this problem too long, is the tracking going to give me a low productivity score?” Or “What happens when I’m on the phone with a customer and not moving my mouse around? Will the tracking make it look like I’m not working?”
Some of the feelings that employees can have when monitored are:
- Betrayed
- No longer trusted
- Loss of company loyalty
- Hurt
- Treated like a number instead of a person
“Activity Monitoring” Doesn’t Mean Productivity
Many employee monitoring software tools send employees and employers “activity reports”. These reports simply look at keyboard and mouse activity during a specific time.
But what if the employee must solve a workflow issue and needs to use their brain, not the mouse? What if a salesperson is on the phone with a customer, not using their keyboard? Zoom calls bring a similar quandary. If you’re in a Zoom call, your mouse and keyboard aren’t being actively used as they would if you are typing.
Yet, the activity report doesn’t include this information. It will simply give a score of x% based on keyboard and mouse activity. This could make an employer think a worker was goofing off when they were actually working hard.
Costs Organizations Good Employees
Nearly half (47%) of surveyed tech employees stated they would quit if their boss tracked them. Employers implementing monitoring can alienate good employees and make them feel untrusted. They can also feel unappreciated.
When you relegate everyone to a number of keyboard strokes, you constrain creativity. Good employees often stay with companies where they feel appreciated and can grow. Once that’s gone, they’re likely to leave.
Update: AI-Powered Employee Monitoring Trends for 2025–2026
As the workplace continues to evolve, AI-powered employee monitoring software is transforming from basic activity tracking into sophisticated analytics platforms. These tools now measure not only what employees do but how they work, providing insights into productivity patterns, collaboration quality, and even burnout risk.
Modern tools like ActivTrak and Teramind now feature:
- Predictive analytics to forecast employee fatigue or disengagement
- Automated productivity reports using AI pattern recognition
- Sentiment analysis from team communications to detect morale changes
- Privacy-first configurations ensuring compliance with GDPR and CCPA
However, these innovations have also reignited debates around digital ethics and data transparency. Employers must find the sweet spot between optimizing workflow and protecting employee autonomy.
For more insight into AI’s growing role in IT systems, check out AI in Action: Streamlining Operations and Strengthening Cybersecurity.
Update: Employee Privacy Regulations & Compliance
Governments around the world are tightening rules on workplace monitoring. In the U.S., states like California, New York, and Connecticut now require employers to notify workers about monitoring activities. The EU’s GDPR mandates explicit consent and limits on data retention.
Before implementing monitoring tools:
- Review your state or regional labor laws
- Consult HR organizations like SHRM
- Define a clear monitoring policy with employee acknowledgment forms
This proactive approach not only ensures compliance but also builds transparency — key to employee trust.
You can read more about maintaining a secure and compliant workplace in our article Cybersecurity Best Practices for Employers.
Update: The Link Between Monitoring and Cybersecurity
While employee monitoring tools are often viewed through a productivity lens, they also play a key role in cybersecurity protection. By tracking unusual patterns — such as unauthorized logins or file transfers — monitoring systems can detect early signs of insider threats.
According to a 2025 IBM Security Report, insider incidents now account for 28% of corporate data breaches. Properly configured monitoring tools can help prevent these risks by providing:
- Real-time activity alerts
- Enforced access controls
- Data loss prevention (DLP) integration
Pairing these systems with managed IT services helps businesses strengthen their security posture and reduce downtime. Learn more in Things to Know About Managed IT Services in Idaho.
Finding the Right Balance with Employee Monitoring Software
A few things to think about when implementing employee monitoring software and finding the right balance…
- What do you really need to track?
- Should you treat all employees the same?
- What do your employees think about monitoring?
- Are you trying to solve a problem that doesn’t exist?
- What features are unnecessary that you can turn off?
- Is the tool giving you accurate data related to productivity?
Update: Best Practices for Ethical Monitoring
Before implementing employee monitoring software, consider conducting employee surveys and holding transparent conversations about privacy concerns. Many successful companies have found that clearly communicating the purpose of monitoring and involving employees in the decision-making process leads to better adoption and less resistance. Implementing monitoring software successfully depends on how it’s introduced to your team. Consider these best practices to balance efficiency with empathy:
Research consistently shows that organizations fostering trust and transparency in their monitoring practices see higher employee satisfaction and reduced turnover rates. (CultureMonkey employee trust survey report and HR Executive/Institute for Corporate Productivity).
Additionally, review your local and state labor laws regarding employee monitoring. Some jurisdictions require explicit consent and disclosure before implementing surveillance tools. Consulting with SHRM (Society for Human Resource Management) or legal counsel can help ensure your monitoring practices comply with current regulations.
Implementing employee monitoring software successfully depends on how it’s introduced. Before deploying employee monitoring software, consider conducting employee surveys…
Update: Key Takeaways for 2025
- The employee monitoring market continues to grow, driven by hybrid and AI-integrated workplaces.
- Transparent communication and compliance with privacy laws are now must-haves, not options.
- Overly invasive monitoring damages morale and creativity.
- Ethical, data-driven oversight enhances both trust and productivity.
To explore related IT transformation insights, visit Unlocking the Potential of Hospitality IT Services.
FAQs (New 2025 Section)
- Is employee monitoring software legal in all U.S. states?
Not always. Laws differ by state. For instance, New York and Connecticut require prior written notice, while California enforces stricter consent requirements under privacy laws. - Can employee monitoring software actually increase employee engagement?
Yes — if implemented transparently. Tools that focus on productivity metrics rather than surveillance often lead to improved accountability and motivation. - What are the cybersecurity benefits of employee tracking?
Monitoring can help detect suspicious behavior, unauthorized data access, or phishing attempts early — reducing breach risks. - How do I ensure my monitoring practices stay compliant?
Regularly update privacy policies, anonymize data when possible, and seek guidance from HR and legal professionals familiar with labor laws. - What’s the future of workplace monitoring?
Expect the next wave of tools to integrate AI-driven insights with digital wellness analytics, measuring not just performance but also employee well-being.
Get Expert Advice on the Best Tools for Your Business
Cloud tools are an important part of your business. You should deploy employee monitoring software thoughtfully with proper planning and consideration for your team’s needs. Ready to leverage technology that empowers — not micromanages — your workforce?
At Moat IT, we specialize in implementing productivity and cybersecurity solutions that support both your business goals and employee trust.
Schedule a consultation to learn how to integrate monitoring tools ethically and effectively into your organization.
This Article has been Republished with Permission from The Technology Press.
