How to Choose an Employee Monitoring Software: A Comprehensive Guide

Key Takeaways:

• Clearly define your monitoring goals, such as productivity, security, compliance, or attendance.
• Choose software with features that match your needs, like AI insights, time tracking, and reports.
• Ensure legal and ethical compliance with transparent policies and privacy-friendly settings.
• Pick tools that are easy to deploy, use, and offer a good user experience for both admins and employees.
• Go for software that integrates with your existing tools and scales with your team.
• Check vendor reputation, user reviews, and availability of onboarding support.
• Use monitoring to build trust and improve performance, not to micromanage or punish.
• Flowace stands out as the best tool with AI-driven insights, ethical monitoring, and unbeatable value for teams of all sizes.

A monitoring software has the power to make or break your team. Employee monitoring software can boost your team’s productivity and build accountability. But choosing the wrong tool (or using it the wrong way) can hurt your team’s morale and trust.

As of 2025, the best tools combine smart technology with strong ethics. AI and automation now play a big role in how teams are monitored. But it’s no longer about watching every move. Instead of micromanaging, these tools aim to provide meaningful and timely support to employees.

Moreover, today, there’s an increasing emphasis on ethical monitoring practices that respect employee privacy. 

So before you pick a monitoring solution, make sure you know what to look for.

How to Choose an Employee Monitoring Software

There are several types of employee monitoring tools. Before diving into their features, get clear on why you need employee monitoring software. Different goals call for different capabilities. So, identifying your primary objectives will narrow your options. If you need to:

• Boost Productivity: You can use monitoring tools to track how your team spends their time. Look for features like activity rates, focus scores, and app usage. These help you find what’s slowing your team down so you can fix it.
• Improve Security: If you work in finance, healthcare, or any field with sensitive data, security matters most. Choose tools that track emails, keystrokes, and file transfers. You’ll want alerts for risky behavior and data loss prevention (DLP).
• Track Attendance: Need to make sure people are showing up and working full hours? Go for tools with clock-in/out, automatic timesheets, and shift tracking. If that’s your main goal, even a simple tool will work.
• Stay Compliant: Some industries have strict rules. If that’s you, pick software with audit logs, access controls, and compliance reports. Make sure it follows privacy laws, too.

Key Features to Evaluate in Employee Monitoring Software

Once your goals are clear, it’s time to evaluate the features a monitoring tool offers. There are several tools available on the market. Some excel in time tracking, some have strong security, while others might be heavy on surveillance. So you need to choose a tool that matches your specific goals.

Some key features to compare when evaluating solutions:

Activity Tracking 

You should choose software that tracks what apps and websites your team uses during work hours. This helps you see how much time goes to work-related tasks vs. distractions. Also, check if the tracking extends to keystrokes or emails. Tools like Flowace go a step further in user activity monitoring by capturing screenshots or even short screen recordings. 

Time Tracking & Attendance

If you need more than just activity logs, look for active time tracking features. You’ll want a tool that starts the timer when your computer is active. It should also let you add time entries for tasks and submit them for approval. If you work with clients or manage projects, go for a tool that connects with your project management software and timesheet reports.

Productivity Analytics & Dashboards

Raw data alone doesn’t help much. What you need is a tool that turns that data into real insights. Flowace does just that with its productivity ratings and easy-to-read reports. You also get clear dashboards that break down daily active hours, idle time, and top-used apps. Even your employees can view their own stats, which builds trust and helps them improve on their own.

Security and Compliance 

If security or compliance is a top priority for you, focus on tools that offer features like keystroke logging, file tracking, email and chat monitoring, and alerts for risky behavior. These features help you catch potential threats before they escalate.

Flowace, for instance, gives you flexible options. You can choose a stealth mode for quiet monitoring or an interactive mode to keep things transparent. It also keeps your data safe with tamper-proof logs and role-based access, so only authorized admins can view sensitive info.

 Reporting and Analytics

Reporting and alerts are the key features that provide you with real value.  You should be able to get daily, weekly, or custom reports on hours worked, activities, and productivity levels. Look for tools that let you create your own reports, like tracking productivity by department or seeing the top websites used across your team.

Flowace sends alerts when someone misses a scheduled start time or has attendance issues. Real-time alerts can also flag when someone accesses a blocked site or if their activity drops too low. These small nudges help you spot issues early.

Integrations and Scalability 

Your monitoring tool shouldn’t work in isolation. It needs to connect with the tools you already use. Look for software that integrates with project management platforms like Jira, Asana, or Trello, and communication tools like Slack or Microsoft Teams.

Flowace offers 10+ built-in integrations. You can sync project names from tools like Jira or Salesforce, or start tracking time directly from those apps.

Also, think about compatibility. Does the tool work on Windows, Mac, and Linux? Flowace does. The right integrations can save hours of manual work and help you see all your data in one place

Legal and Ethical Considerations While Choosing an Employee Monitoring Tool

Employee monitoring sits at the intersection of productivity and privacy. To implement it successfully (and legally), you must address the legal and ethical aspects and some employee monitoring laws. Here’s what to keep in mind:

• Always be transparent about monitoring. Secret surveillance erodes trust and may violate the law. Create a clear monitoring policy that explains what’s being tracked, why it’s done, and how data will be used.
• U.S. laws allow broad monitoring rights on company devices, but state-level laws vary, and consent may be required. In many states like CT, DE, and NY, written notice of monitoring is legally required. California’s CCPA/CPRA gives employees rights to know, delete, or opt out of data collection.
• Emphasize the benefits of monitoring for both the company and employees (e.g. fairness, support, security). Use visible indicators or opt-in modes like Flowace’s interactive dashboard to build transparency and trust.
• For EU employees under GDPR, you must have a “legitimate interest” and follow strict data protection principles.
• Once you collect data, you must secure it using encryption, access controls, and set clear data retention timelines. Limit access to monitoring data to only those who need it, such as HR or managers.

Ease of Deployment and User Experience

Deployment & Setup: Cloud-based tools like Flowace are easy to deploy and work on Windows, Mac, browsers, and mobile. Look for tools with auto-installers or bulk deployment options if you’re not tech-savvy.

Technical Requirements: Make sure the software supports your operating systems and check for any admin or antivirus issues. Good vendors provide clear setup guides.

User Interface (Admin): The dashboard should be easy to use, with visual data (charts, filters, team views). Flowace offers simple team and individual productivity dashboards.

User Experience (Employee): If employees use the tool, it should be lightweight and easy to navigate. Flowace provides an interactive dashboard and user-friendly design.

Mobile & Remote Access: Choose a tool with mobile apps and remote access features. Flowace tracks mobile app usage and calls (opt-in), with web dashboards available anywhere.

Onboarding & Training: Look for tools with tutorials, help docs, and onboarding support. Flowace offers video guides and three onboarding sessions in their Standard plan.

Support & Responsiveness: Test customer support during the trial. Quick and helpful responses are a sign of good vendor reliability.

Cost and Pricing Models

Most employee monitoring tools follow a per-user, per-month pricing model, with discounts for annual billing. Flowace starts as low as $2.99/month, while others like Teramind and Hubstaff offer tiered or modular plans. 

While choosing a pricing model, make sure you understand the hidden costs. This may include fees for on-premise setup, API access, premium support, or extra storage. Some features may only be available in higher-priced tiers. Also, check if there’s a minimum number of users for a plan – e.g, Hubstaff’s plans have a 2-user minimum on paid tiers.

When justifying the cost, you should also consider the potential Return on Investment. For example, Flowace claims it can boost productivity by 31% and save 40% on costs.

To calculate ROI, you could pilot the software with a team and measure changes in output or time savings. Many vendors have case studies or ROI calculators to help quantify this. Don’t forget to factor in the intangible ROIs like improved attendance, better project estimates, and reduced burnout.

Vendor Reputation and Reviews

When entrusting a software to monitor your workforce, the credibility of the vendor matters. You want a solution that is reliable, well-supported, and positively reviewed by other users. Here’s how our top contenders stack up and what to look for:

Impact on Company Culture

Introducing employee monitoring can shape your company culture in big ways. If you do it right, it can lead to more transparency, better fairness, and even a healthier work-life balance.

But to get there, you need to handle it with care.

• Employee Perceptions and Fears: Employees may feel anxious or mistrusted by monitoring. Address this by framing it as a tool for fairness, workload balance, and recognizing contributions, not punishment.
• Policy and Boundaries: Create a clear, transparent monitoring policy that respects privacy. Define what is and isn’t tracked (e.g. personal devices, off-hours), and set healthy boundaries to ease employee concerns.
• Involve Employees in the Process: Involve employees in selecting and configuring the tool. Let them test features, give feedback, and help shape settings to build ownership and reduce resistance.
• Transparency of Data: Let employees view their own productivity data to foster trust and self-improvement. Tools like Flowace provide personal dashboards and transparency that demystify the process.
• Positive Reinforcement: Use monitoring to highlight wins, not just problems. Recognize top performers and share team-wide improvements to make employees feel valued.
• Avoiding a Dystopian Atmosphere: Don’t rely solely on data—combine it with empathy and conversations. Use insights to support employees, not penalize them for normal breaks or off-days.
• Handling Resistance: Address concerns with empathy and flexibility, especially around sensitive roles. If someone raises a valid issue, adjust settings; fair, consistent use builds long-term acceptance.

Top 5 Best Employee Monitoring Software

There are plenty of employee monitoring tools out there. But a few have earned a strong reputation. In this section, you’ll see a quick comparison of five popular options: Flowace, Teramind, ActivTrak, Hubstaff, and Time Doctor. Each tool has a different focus. Some are better for productivity, others for security. 

Here is a quick look at the 5 best employee monitoring software. You’ll also find links to deeper guides if you want to explore further.

1. Flowace

Quick Intro: AI-Powered Productivity & Monitoring

Focus: All-in-one productivity and monitoring tool

Strengths:

• Time tracking, screenshots, app/website usage, attendance
• AI-powered productivity scores and reports
• Silent or interactive tracking modes
• Affordable for SME

Best For: Small to mid-sized companies looking for balanced monitoring and productivity coaching. Ideal for remote or hybrid teams on a budget.

More Info: Flowace 

2. Teramind

Quick Intro: Security-Focused Monitoring & DLP

Focus: Deep surveillance, policy enforcement, and data loss prevention

Strengths:

• Keylogging, email/chat/file tracking, screen recording
• Insider threat detection and compliance tools
• Real-time alerts and behavior-based rules

Best For: Large enterprises, finance, and government agencies with strict security and compliance needs.

More Info: Teramind Alternatives

3. ActivTrak

Quick Intro: Productivity Analytics for Teams

Focus: Non-intrusive productivity monitoring and analytics

Strengths:

• App and website usage monitoring
• Categorizes activities as productive/unproductive
• Goal setting, coaching insights, and team benchmarks

Best For: Teams focused on improving digital wellness and performance. Great for companies seeking ethical and transparent monitoring.

More Info: ActivTrak vs Flowace

4. Hubstaff

Quick Intro: Time Tracking with Basic Monitoring

Focus: Time tracking for remote and mobile teams

Strengths:

• Screenshots, activity levels, and GPS tracking
• Project budgeting, invoicing, and payroll integrations
• Light monitoring with clear user visibility

Best For: Agencies, freelancers, or distributed teams that need time tracking without heavy surveillance.

More Info: Hubstaff vs Clockify

5. Time Doctor

What They Promise: Productivity Monitoring for Remote Teams

Focus: Time tracking, distraction alerts, and work summaries

Strengths:

• Tracks time spent on tasks and websites
• Sends real-time distraction alerts
• Daily work summaries and client-facing reports

Best For: Remote teams needing accountability and detailed daily breakdowns, especially for billing and productivity reviews.

More Info: Time Doctor Overview

Why It Stands Out as the Best Time Tracking Tool?

Flowace differentiates itself in several key ways that align with the concerns and needs we’ve discussed:

1. AI-Driven Productivity Insights

Flowace uses AI to analyze work patterns and generate productivity scores, making it easy for managers to spot top performers or team members needing support. The tool highlights trends and forecasts improvements without requiring manual analysis—ideal for busy managers.

2. Ethical Monitoring with Privacy Options

Flowace offers both Stealth and Interactive modes, allowing teams to choose their level of transparency. Features like screenshot blurring, adjustable tracking frequency, and work-life balance metrics help maintain trust and support employee well-being.

3. Easy Integrations & Multi-Platform Support

Flowace integrates with tools like Jira, Asana, Slack, and Salesforce. It supports desktop, browser, and mobile use—including call time tracking—ensuring a complete view of work, even offline or on the go.

4. Built for All Business Sizes

From small teams to enterprises, Flowace scales easily. It offers unlimited users even on the Basic plan, supports hybrid work setups, and includes client-access options in higher tiers, making it ideal for agencies and service businesses.

5. Excellent Onboarding & Support

Flowace includes product training sessions and dedicated account managers in higher plans. This hands-on support ensures faster adoption and better long-term results, especially helpful for teams new to monitoring tools.

Final Thoughts

The way we work is changing, and the tools we use to manage teams need to keep up. Employee monitoring isn’t just about tracking time or activity. It’s about helping people work smarter, staying fair, and making decisions based on real data.

We hope this guide gave you the clarity and confidence you need to pick the right tool for your team. 

So don’t leave things to guesswork.

Start your free trial of Flowace and see how AI-powered monitoring can improve focus, performance, and accountability, without losing trust.

Or, if you’d prefer to walk through it step-by-step, book a free demo. We’ll show you exactly how Flowace fits into your unique workflow.

Let’s build a smarter, more productive workplace together.

FAQs:

1. What is the best employee monitoring software?
   The best tool depends on your goals. For example, Flowace is ideal for productivity analytics, time tracking, and remote workforce management.
2. Is employee monitoring software a good idea?
   Yes, when used ethically, it improves productivity, accountability, and security—but poor implementation can hurt trust, so it’s important to be transparent and fair.
3. Is it illegal for employers to use employee monitoring software?
   Generally, it’s legal if used on company-owned devices, but laws vary by country and state—always inform employees and consult legal counsel before implementing.
4. How can I see what my employees are doing on their computers?
   Use features like app and website usage logs, keystroke and mouse activity tracking, screenshots, and even live screen views to understand work habits.
5. What is one downside of using monitoring software on work devices?
   It can erode employee trust and increase stress if not communicated properly or used excessively.
6. How do I monitor my employees working remotely?
   Use tools with remote-friendly features like offline time tracking, GPS or mobile monitoring, and integrations with platforms like Slack, Jira, or Trello.