Expert Recommendations For Leaders Torn About Employee Monitoring

• When employees believe they are constantly being watched, it can create a climate of suspicion that reduces employee motivation and overall job satisfaction across an organization.
• The potential biases stemming from the analytics produced by these workplace surveillance programs can have a negative impact on employees’ mental well-being — creating an environment where they often feel judged by what they believe is incomplete data.
• Collaborative tools and workplace policies that promote transparency and teamwork, rather than surveillance, are also seen as valuable alternatives to increasing workplace monitoring.

Many employers are turning to workplace monitoring software to maintain productivity and accountability among their distributed teams this year. 

However, the growing use of these workplace surveillance tools also raises serious ethical red flags that could lead to unintended negative consequences across any organization. 

The risks of workplace surveillance

Dr. Gleb Tsipursky, hybrid work expert and CEO of Disaster Avoidance Experts, shared with Allwork.Space that one of the primary ethical challenges with employers increasing employee monitoring is the invasion of personal privacy. 

He noted when organizations implement surveillance software, employees often feel that their personal space is violated, which can lead to a decrease in trust between employees and employers. 

“This erosion of trust can impact team cohesion, employee morale, and overall job satisfaction, potentially leading to higher turnover rates,” Dr. Tsipursky said. “Additionally, there is the ethical question of autonomy. Employees who feel they are under constant surveillance may experience a reduction in their sense of autonomy and empowerment.” 

These concerns have become more relevant over the past year as several larger firms like Dell  and Amazon adopt stricter employee tracking measures — like tracking badge swipes. 

PricewaterhouseCoopers (PwC), one of the Big Four accounting firms, also brought the topic of employee privacy into the mainstream after it announced that it will track the work locations of its 26,000 U.K. employees to ensure compliance with its new office attendance policy. 

PwC’s decision only adds to the broader debate of the employee surveillance trend that is increasingly affecting the global workforce. 

Companies are turning to surveillance measures to enforce their updated hybrid work policies, which often translates to more days in the office. 

Earlier this year, Wells Fargo also made headlines after it fired several employees following an investigation into workers faking keyboard activity to appear both online and productive. 

In response to new employee monitoring programs, employees across the post-pandemic workforce are also resorting to devices known as “mouse jigglers,” which are used to physically wiggle the mouse at specific time intervals to give off the illusion of being active at work. 

Researchers believe mouse jigglers are a direct response to employees seeking to maintain their visibility online during normal work hours — a side effect of employers setting greater expectations for productivity by monitoring online activity with surveillance software. 

It’s part of a trend that a 2024 Bamboo HR report calls: the Green Status Effect. 

The Bamboo HR report reveals that the majority of remote (88%) and in-office (79%) workers feel compelled to demonstrate their online presence continually. 

This trend involves keeping workplace messaging apps open to display an active online status — a behavior which the report’s researchers say is “actively eroding employee trust.” 

When employees believe they are constantly being watched, it can create a climate of suspicion that reduces employee motivation and overall job satisfaction across an organization. 

The resulting tension can even persuade the most talented employees to seek workplaces that prioritize greater autonomy and flexibility over the feeling of constant managerial oversight.

“This perception can stifle creativity, reduce engagement, and ultimately hinder productivity rather than enhance it,” Dr. Tsipursky said. “Lastly, there are potential biases and fairness issues. Monitoring software often lacks context and nuance in understanding employee behavior, which can lead to unfair assessments or misinterpretations of an employee’s performance.”

What tracking can miss

Popular monitoring software might track screen time, but it also fails to account for other important factors like breaks, creative thinking, or non-digital tasks that are found to contribute to overall employee productivity, and research backs this up. 

One study from the University of California, Irvine notes that disruptions to frequent breaks and unstructured time needed for creative thinking can also hamper innovation and problem-solving.

The potential biases stemming from the analytics produced by these workplace surveillance programs can have a negative impact on employees’ mental well-being — creating an environment where they often feel judged by what they believe is incomplete data. 

This not only affects employee morale across an organization, but also further raises ethical questions about fairness and the responsible use of surveillance technology in the workplace.

An alternative strategy that can lead to better outcomes would be to promote a culture of employee independence. Rather than micromanaging employees through technology, employee autonomy is seen as a key driver from experts like Dr. Tsipursky for boosting motivation and productivity. 

The overall privacy and employee autonomy concerns led the U.K.’s Information Commissioner’s Office (ICO) to say employers must make their staff aware of the nature, extent, and reasons for monitoring. 

“Our research shows that today’s workforce is concerned about monitoring, particularly with the rise of flexible working — nobody wants to feel like their privacy is at risk, especially in their own home,” according to a report published by the ICO.

Besides location tracking and key card swipes, other monitoring technology includes tracking calls, messages, and keystrokes to capture screenshots, webcam footage, and even audio recordings. While some employers may implement these tools and other new attendance policies with good intentions, the long-term effects can backfire. 

An extreme example of negative consequences is Dell’s mandate requiring employees to be in the office or risk losing out on promotions. 

As a result of the company’s updated work policies, which also includes electronic badge swipes and VPN monitoring to track where employees work, employee morale has dropped significantly, and Dell’s employee net promoter score (eNPS) reaching close to zero.

Dr. Tsipursky explains that surveillance tools can often lead to a culture of micromanagement, which stifles innovation and creates a distrustful atmosphere. Employees might start to focus on “looking busy” rather than being genuinely productive, leading to short-term gains but long-term challenges.

Employees might start to focus on “looking busy” rather than being genuinely productive, leading to short-term gains but long-term challenges.

“Instead of relying on surveillance, companies should focus on establishing clear goals, fostering open communication, and providing support to employees,” said Dr. Tsipursky.

The power of backlash

The potential backlash against over-surveillance from employees in hybrid and remote work environments can result in higher turnover rates, as employees seek work environments where they are more trusted and respected. 

Companies that rely heavily on monitoring tools may find it difficult to attract and retain top talent — especially as workers increasingly demand flexible and supportive work cultures.

As surveillance technology advances, more employers may gradually expand the scope of monitoring programs. 

This also raises ethical concerns about privacy, transparency, and trust in the workplace. A report from CompTIA highlights the potential risks businesses could encounter if using advanced technology like AI and facial recognition to monitor employees. 

Without proper oversight, experts believe these tools can quickly infringe on personal freedoms and privacy. The report emphasizes the need for clear boundaries to prevent the unchecked growth of surveillance in the workplace.

Collaborative tools and workplace policies that promote transparency and teamwork, rather than surveillance, are also seen as valuable alternatives to increasing workplace monitoring. 

A report published by Deloitte found that 86% of the workers and 74% of leaders surveyed say “an increasing focus on trust and transparency in the relationship between workers and the organization is very or critically important.” 

The trend actually ranked the highest in terms of importance of the seven workplace trends analyzed by Deloitte. 

“[T]rust and transparency was identified as the trend that would have the greatest impact on an organization’s success, both this year and in the next three years,” according to the report.

Experts like Dr. Tsipursky believe that by focusing on communication and goal-setting, companies can safeguard against these ethical challenges and concerns, and create a supportive environment that encourages high performance without the need for constant oversight.

Rather than relying on surveillance, organizations should invest in professional development opportunities and align company goals with employee values. 

These alternative efforts can also lead to employees feeling valued and supported, and they are more likely to stay engaged and motivated without feeling pressure of constant monitoring.