Employee monitoring in 2025 has become a core part of the modern workforce management. According to industry research, around 80 % of businesses monitor their workforce in some way. From checking employees’ internet use to using biometric entry scans, companies now have a dozen ways to track productivity.
This guide breaks down the various types of employee monitoring, why businesses use them, their pros and cons, and how to implement monitoring ethically and effectively.
Key Takeaways:
- Employee monitoring includes 12 common methods, such as internet usage tracking, screen recording, GPS, email monitoring, and biometric attendance, each serving different use cases.
- Monitoring boosts productivity and security by identifying time-wasting habits, flagging insider threats, and ensuring regulatory compliance in remote and in-office teams.
- Legal and ethical compliance is critical—you must follow laws like GDPR and ECPA, be transparent with employees, and avoid invasive practices unless absolutely necessary.
- Choose your monitoring tool based on your goal—whether it’s productivity, security, attendance, or performance optimization, the right tool should align with your business priorities.
- Flowace stands out as an all-in-one solution—it’s easy to use, customizable, employee-friendly, and packed with AI-powered insights while supporting privacy and scalability. Make monitoring work for your with our free demo.
What Is Employee Monitoring?
Employee monitoring means tracking your employees’ activities during work hours, usually through digital tools. It helps improve employee productivity and protect company resources. For example, companies use Employee monitoring tools to track which apps or websites employees use or how they handle emails.
The goal? To find the cause of low employee productivity, protect company data, and ensure employees comply with company policies and regulations.
Studies show that around 30% to 40% of your work time can be spent on non-work tasks. With remote and hybrid work on the rise, employee monitoring has become even more important.
Employee monitoring can take many forms. It ranges from low-tech approaches like a manager walking around the office to high-tech methods like digital monitoring tools that use AI to analyze employee behavior.
Why Do Businesses Monitor Employees?
Businesses monitor employees for several practical reasons that boil down to keeping the company efficient, secure, and compliant. Especially when your remote employee is not working as expected and it starts affecting your team’s performance and accountability.
Here are some of the biggest drivers behind workplace surveillance:
- Boosting Productivity: Employee monitoring helps track time and productivity. It lets you identify roadblocks and optimize workflows. It also ensures people are actually working their full hours, especially in remote setups.
- Ensuring Security & Compliance: Employee monitoring can flag unusual data transfers, unauthorized logins or policy violations, helping firms stay compliant with regulations such as the Electronic Communications Privacy Act (ECPA) and the General Data Protection Regulation (GDPR).
- Improve customer experience: In BPOs and call centers, recording phone calls and call audit helps in better training, performance evaluations and faster resolution of disputes.
- Workforce Management & Accountability: Employee monitoring reveals if employees have too much or too little work. It helps managers balance workloads, resolve disputes, and reward top performers.
- Attendance & Remote Work Oversight: Employee monitoring tools track attendance and work hours for remote teams, ensuring accurate pay and preventing burnout.
- Detect insider threats and data leaks: Email and network monitoring can detect unusual communication patterns and prevent sensitive information from leaking.
Key Benefits & Drawbacks of Employee Monitoring
Like any powerful tool, employee monitoring can be hugely beneficial when used correctly and counterproductive if misused. It’s important to understand both the upsides and downsides of employee monitoring:
Benefits of Employee Monitoring:
- Higher Productivity & Efficiency: When done right, monitoring can really boost productivity. By tracking how work hours are spent, companies can spot inefficiencies, like long meetings or distracting apps, and fix them. In fact, 81% of employers reported an increase in productivity after introducing monitoring software.
- Enhanced Transparency & Accountability: Ever felt like some coworkers slacked off without any consequences? Monitoring helps level the playing field. When everyone knows what’s being tracked, it builds trust. It ensures that promotions and raises are based on real performance, not office politics or favoritism.
- Improved Security & Risk Mitigation: Monitoring is also key for protecting company security. It can catch issues like data breaches or fraud early. For example, if someone downloads too much data or accesses sensitive files, you’ll be alerted right away. This helps prevent cyber threats, insider risks and ensures compliance with laws like GDPR and HIPAA.
Drawbacks of Employee Monitoring:
- Data Overload & Analysis Burden: Monitoring generates large volumes of data that can overwhelm managers. Without a clear plan, this data can lead to wasted effort.
- Potential for Misuse of Data: Without proper governance, monitoring data can be misused, exposing employee privacy or creating new security issues.
- One-Size Doesn’t Fit All: Different roles may not be suited to the same monitoring metrics. Rigid monitoring can undervalue creative work, encouraging employees to focus on meeting metrics rather than producing quality work.
Types of Employee Monitoring
There are many different methods and tools available for employee monitoring. But grouping similar technologies makes it easier to choose the right solution for you.
Below are five overarching categories that cover most tools on the market. Some are digital, some physical, and each has its place in today’s workplaces.
1. Software‑based monitoring
This category covers tools that run on employees’ devices to log activity, capture screens or record keystrokes.
Time Tracking & Attendance Monitoring
Time tracking is one of the oldest and most common forms of employee monitoring. This category includes any system that records when employees start and stop work and the overall hours worked.
Traditional examples are punch clocks or sign-in sheets. Its modern equivalent includes swipe cards or software that automatically logs active time on a computer. It goes hand in hand with attendance monitoring.
Nearly every business does some form of time tracking, even if it’s just employees submitting timesheets. But many are adopting automated time tracking solutions.
The upside of time tracking is accurate records and insights. It ensures people are paid correctly for their hours, overtime is calculated, and any attendance issues are flagged.
Screen Recording & Screenshot Monitoring
Screen monitoring tools allow employers to monitor an employee’s screen. It can be either by capturing screenshots at intervals or even streaming the screen in real-time. Software like Flowace includes a screenshot feature that can snap a shot of the employee’s screen every 5 or 10 minutes.
The purpose of screen captures is to verify work activity and provide context that simple app or URL logs might not. For instance, if a time-tracking app says Alice was in Excel for 1 hour, a screenshot can show what she was doing in Excel.
One survey noted that 59% of employers use real-time screen monitoring for remote work. But it’s also one of those features employees are most wary about. To keep trust, employers should limit who can view the screenshots and use them only for retrospective analysis.
Application Usage Monitoring
Application usage monitoring tracks what software, websites and apps employees use. This gives a more granular look at their activity beyond web browsing.
For employees, this kind of monitoring usually runs in the background via an agent on their computer. It’s less “creepy” than keylogging or screenshots, because it just logs which app is active, not what the person is actually doing in it. Many companies share these app usage stats with employees as a self-improvement tool. For e.g., some productivity tools will show you how much of your time was in “productive” apps vs “non-productive” apps.
Keystroke Logging
Keystroke logging records every keystroke a user types. Some employee monitoring software includes a keylogging feature intended for security or investigative purposes. For example, if a company suspects an employee of leaking data or conducting fraudulent activities, they might enable a keylogger on that person’s machine to capture evidence
When keylogging is used, it’s often in high-security environments or as a temporary measure. For instance, a defense contractor might use keyloggers on computers that handle top-secret data to ensure no one is copying text out to unauthorized places.
Some advanced insider threat solutions will trigger keylogging only when certain keywords are typed. If you are implementing keylogging, employees should be informed about it in the monitoring policy. And it should be paired with strong access controls so only a security officer or investigator can review the logs.
Productivity & Performance Monitoring
Productivity monitoring is a broad term that often encompasses many of the digital methods above. It emphasizes measuring output and efficiency.
Some modern tools use AI and machine learning to analyze employee activity and even predict behavior. According to recent data, 61% of companies are now using AI-powered analytics to measure productivity.
These systems might look for patterns like, “When do workers tend to be most focused?” or “Which factors correlate with higher sales numbers among reps?”. They can flag anomalies, too.
Productivity monitoring often goes hand-in-hand with goal setting. Employees might have visible metrics to hit. By quantifying work, it aims to motivate improvement and identify top performers. Some companies even introduce gamification, like a leaderboard of productivity metrics or weekly achievements, to motivate their employees.
2. Physical surveillance
Physical surveillance involves installing hardware devices to watch or control physical spaces.
Video Surveillance
Closed-circuit television (CCTV) and video surveillance cameras are a physical monitoring method common in workplaces like offices, retail stores, warehouses, and factories. Security cameras can monitor entrances, exits, server rooms, parking lots, or any area where security or safety is a concern. They help deter theft, vandalism, and misconduct.
For organizations using Coram’s surveillance solutions, integrating security camera cloud storage ensures that footage is securely stored off-site, easily accessible, and protected against data loss or tampering. This scalable cloud option enhances both compliance and convenience, especially for businesses operating across multiple locations.
In retail, cameras catch shoplifters and even employee theft. In offices, cameras at entry points ensure that only authorized people are coming in.
Biometric Monitoring
Biometric monitoring uses unique physical or biological characteristics of employees to verify identity or track attendance/activity. Common workplace biometrics include fingerprint scans, facial recognition, iris (eye) scans, or palm scans.
A typical example is a biometric time clock. Instead of punching a card, an employee clocks in by placing their finger on a scanner or looking at a camera that recognizes their face. This ensures the person is physically present and provides a very accurate attendance record.
3. Location tracking
Location tracking uses GPS devices or smartphone apps to know where field or mobile employees are during work hours.
It often includes geofencing to ensure staff clock in only when they are on‑site and to prevent vehicles or equipment from leaving authorized zones.
GPS Tracking
For businesses with field employees like drivers, sales reps, delivery personnel, or technicians, GPS tracking is invaluable. GPS monitoring typically involves either company-provided devices/vehicles with GPS or asking employees to use a mobile app that reports their location during work.
The benefits of GPS tracking include safety, efficiency, and accountability. For drivers, the company can get alerts if they’re speeding or if a vehicle deviates significantly from its route. You can check if a technician was indeed at a client’s location at 2 PM. In short, it prevents time theft.
4. Communication monitoring
Monitoring communications helps organizations maintain quality, detect breaches and comply with regulations. It includes:
Email Monitoring
Email monitoring is another type of employee monitoring where companies keep an eye on things. It usually means scanning or archiving emails sent or received on the company’s email servers. The main reasons for email monitoring are security and compliance. It helps catch phishing attempts or stops sensitive data from being sent out.
In regulated industries like finance, companies are required to keep business communications for a set period. Supervisors might even review a sample of emails for any signs of insider trading or policy violations.
Email monitoring tools can also filter out malware or suspicious links to protect employees from cyberattacks. Typically, email monitoring is automated. Companies use software that scans emails for certain keywords, large attachments, or unusual recipients. If something seems off, it gets flagged for IT or compliance officers to check.
Call & Voice Monitoring
Call monitoring is primarily used in call centers, customer support, sales teams, and any role where employees are regularly on the phone with customers or clients. This includes recording phone calls, listening in on live calls, and reviewing call logs.
The common phrase “This call may be recorded for quality assurance” – that’s exactly what this is.
Beyond quality, some industries have compliance requirements to record calls. For example, financial trading desks often have every call recorded by law to deter and detect insider trading or other illegal activity. In healthcare, calls might be recorded to ensure no violations of patient privacy rules occur over the phone.
5. Access control and network monitoring
This category covers systems that control who enters facilities and what data they can access.
Examples include:
File & Network Activity Monitoring
This type of employee monitoring focuses on file access and data transfers on the company’s systems. It answers questions like:
- Which files did an employee open, edit, or copy?
- Did someone save a bunch of files to a USB drive?
- Did any large amounts of data get uploaded to a cloud storage or emailed out?
Similarly, network monitoring looks at traffic patterns and what data is flowing in and out of the network.
File activity monitoring is crucial for data security and insider threat detection.
For example, if an employee suddenly downloads 10GB of files from the company server or plugs in an external hard drive and copies files, monitoring software can catch that. It might alert IT and even automatically block the transfer.
Many organizations deploy Data Loss Prevention (DLP) tools that flag or prevent sensitive files from leaving the company network or being printed.
Internet & Web Usage Monitoring
Internet monitoring is all about keeping track of which websites and online services employees use on work devices or networks. For example, a company might log every site visited, block certain sites, or track time spent on business vs. entertainment sites.
From a security standpoint, it helps prevent employees from visiting risky sites or downloading viruses.
Web monitoring is typically done through a proxy server or software installed on the employee’s computer. It’s pretty common.
But it is important to be transparent with employees. Let them know that their internet usage is monitored on company devices or networks, so no one is caught off guard.
Comparison Table: Types of Employee Monitoring
The table below compares the main types of monitoring by who they’re best for, privacy impact and ease of implementation.
| Type | Best For | Privacy Level | Ease of Implementation |
|---|---|---|---|
| Time tracking & attendance | Accurate hours, payroll, attendance for on-site/remote teams | Low–Medium | Easy (software or clocks) |
| Screen recording / screenshots | Verifying work context on sensitive tasks | High | Easy–Moderate (agent setup, access controls) |
| Application & website usage | Workflow insights, distraction control | Medium | Easy (lightweight agent) |
| Keystroke logging | Targeted investigations in high-security roles | Very High | Moderate (strict policy, limited access) |
| Productivity & performance analytics (AI) | Trend analysis, coaching, goal tracking | Medium–High | Moderate (metrics tuning, change mgmt) |
| Video surveillance (CCTV) | Physical security, incident review | Medium | Moderate (cameras, storage) |
| Biometric access / time clocks | Secure entry, buddy-punching prevention | Medium–High | Moderate–Hard (hardware, enrollment) |
| GPS / geofencing | Field teams, fleet routing, on-site verification | Medium | Easy–Moderate (mobile or vehicle devices) |
| Email archiving / monitoring | Security, compliance, e-discovery | Medium | Easy–Moderate (server/tenant policies) |
| Call & voice recording | QA, training, regulated communications | Medium | Moderate (telephony integration) |
| Access control (keycards/badges) | Facility entry logs, multi-site control | Low–Medium | Moderate (readers, badges, admin) |
| File & network activity / DLP | Data loss prevention, insider-risk detection | Medium | Moderate–Hard (rules tuning) |
| Internet / web usage | Blocking risky sites, bandwidth policy | Medium | Easy–Moderate (proxy/agent) |
Best Employee Monitoring Type for your Business Size
Small Firms
If you run a small business, you’ll probably start with simple tools like time tracking or app monitoring. They’re affordable, easy to set up, and give you a quick view of how your team works.
Mid-sized Firms
As your company grows into a mid-sized firm, your needs change. You might add GPS tracking for field staff to see where they are during the day. You may also use email or call monitoring for customer support teams to improve service and catch issues early.
Large Enterprises
For large enterprises or industries that handle sensitive data, monitoring becomes more advanced. Here, you could invest in video surveillance, biometric systems, or full network monitoring. These tools add extra layers of security and help you protect both your business and your people.
The key is simple. Start small, scale as you grow, and choose the right mix of tools that fit your needs.
Finding the Employee Monitoring Method That Fits Your Team
Selecting the best monitoring system depends on several factors:
1. Define your main objective
Decide what you’re trying to achieve with monitoring. Is your priority higher productivity, stronger security, meeting compliance rules, or all three? For instance, if cutting down on time theft is your goal, then tools like time-tracking and geofencing should be at the top of your list.
2. Match tools to your workforce
Think about how your team works. Remote and hybrid teams usually benefit from digital monitoring software, while field workers often need GPS tracking. If your office handles highly sensitive data, you may need extra layers like access control or surveillance.
3. Understand the legal side
Monitoring comes with rules you can’t ignore. The ECPA allows monitoring for legitimate business reasons, but many states (like California, New York, and Minnesota) require notice or employee consent. In the EU, GDPR requires clear employee notification, a lawful reason for data collection, and sometimes impact assessments. Video surveillance can’t cover private spaces, call recordings must notify customers, and GPS tracking should be turned off outside work hours.
4. Balance costs with capabilities
Not every system fits every budget. Time-tracking and software-based tools are affordable and easy to roll out. On the other hand, biometric scanners and advanced network monitoring need bigger investments and IT expertise to manage.
5. Respect privacy and workplace culture
Monitoring can backfire if it feels intrusive. Be transparent by involving employees in creating policies, explaining how and why data is collected, and letting them see their own performance data. Choose tools that include privacy safeguards and make sure all information is stored securely.
Ethical & Legal Considerations based on the Employee Monitoring Type You Use
You can’t just track everything because you can. You need to follow employee monitoring laws like GDPR in Europe or ECPA in the U.S. Some places require you to notify employees or get their consent. And even when it’s legal, you still have to ask—is this fair?
Be transparent about why you’re implementing employee monitoring. Create a clear written policy. Avoid spying with these employee monitoring tools unless there’s a serious reason. In most cases, open communication builds more trust than secret software ever will.
Only monitor what’s necessary. Don’t collect more than you need. For example, if tracking general activity works, don’t log every click or webcam image. Respect work-life boundaries. Don’t monitor personal devices or off-duty time.
Keep your data safe. Use encryption, limit access, and delete anything you don’t need. And review your practices often.
You can also explore our article best practices for employee monitoring to implement monitoring ethically.
Cost, implementation difficulty and ROI of Employee Monitoring
Every monitoring solution has its own price tag and benefits. The right choice depends on your budget, your team size and what you want to achieve.
-
Software tools run on monthly SaaS plans, are quick to set up, and often include free trials across devices.
-
Cameras and access systems need hardware and installation, but they pay off by reducing theft, cutting insurance costs and improving safety.
-
GPS tracking is low-cost with mobile apps or vehicle trackers, helping stop overtime fraud, optimise routes and recover assets.
-
Communication monitoring has mid-range costs for licensing and integrations, boosting customer service and resolving disputes faster.
-
Biometric systems are the priciest, with special hardware and compliance needs. They bring strong security and accurate attendance but may not suit smaller firms.
Why Choose Flowace for Employee Monitoring?
While there are many employee monitoring tools on the market, choosing a platform that balances productivity and privacy is critical.
Flowace is an all-in-one, AI-powered Employee Monitoring Softwareg\ and productivity tool built with both managers and employees in mind. It offers a comprehensive set of features:
- Ease of Use & Visual Dashboards: Its clean, user-friendly dashboard uses charts and color-coded visuals, making it easy for both managers and employees to track productivity.
- Customizable & Employee-Friendly: You can customize tracking hours, toggle screenshots, and allow private time, giving employees control and reducing micromanagement concerns.
- Focus on Trust & Collaboration: Flowace encourages transparency and two-way feedback, helping teams use data to solve problems, not just enforce rules.
- AI-Powered Insights: Smart analytics identify productivity trends, predict burnout, and highlight optimization opportunities, making performance data actionable.
- Security & Compliance: Flowace prioritizes data privacy with encryption, 2FA, GDPR-friendly settings, and clear guidance for ethical implementation.
- Scalable & Supported: Designed to grow with your team, Flowace offers scalable pricing, responsive support, and regular feature updates.
- Transparent Pricing: Flowace offers upfront, affordable pricing with a 7-day free trial and no hidden costs, making it easy to try before you commit.
Final Thoughts
Employee monitoring is no longer just about catching slackers. It helps you create data‑driven, secure, and accountable workplaces. By understanding the different types of employee monitoring, you can choose the tools that align with your goals, workforce, and budget.
When implemented thoughtfully, monitoring delivers a win–win outcome: employers gain insights to improve processes and security, while employees receive clarity on expectations, fair evaluations and safer workplaces.
Given all the above, we believe Flowace stands out as the best employee monitoring solution that finds the balance between company insight and employee trust. It was built by folks who understand the modern work culture, including remote work challenges, and who emphasize productivity and privacy. Of course, every business has unique needs, but Flowace’s flexibility makes it adaptable.
See the difference Flowace can make – start your free trial today!
