7 Best Practices to Monitor Your Employees While Respecting Privacy

A year ago, while managing a remote team, I struggled to keep my employees engaged.

Naturally, I thought monitoring software was the answer to increase employee productivity.

But it also raised privacy concerns and mental stress.

So, I had to make sure I was staying within legal obligations like the ECPA.

That’s why I applied techniques with the right monitoring software that balanced employee productivity and accountability.

Let’s explore them in detail, shall we?

In this article

• Employee monitoring best practices
• Best software to monitor employees

Before you dive in, quickly check out the true meaning of employee monitoring.

7 Best Practices to Monitor Your Employees Respecting Privacy

Effective employee monitoring doesn’t feel like spying. These seven practices will help you monitor your employees while respecting their privacy rights:

1. Use Monitoring Data Ethically

The purpose of collecting user activity monitoring data is to make the entire work process more efficient.

It should be used to make a smoother, more improved process to recognize good employee performance. And make adjustments when employees are falling short.

So, analyze the productivity data to spot where improvement is needed. Consult with the individual staff about what is dragging them down, rather than blaming them.

At the same time, appreciate workers who are performing well. This will create a more supportive work environment.

At the end of the day, it benefits the organization.

And you know what?

Companies with a positive work culture have a 13.9% turnover rate whereas it’s 48.5% if employee morale is low.

2. Be Transparent

Without employees knowing their activity is monitored, legal trouble may arise.

For example, CNIL fined Amazon €32 million for “excessively intrusive” monitoring. They did it on warehouse staff using handheld scanners.

They tracked every break by the second without proper disclosure about workplace surveillance. [Source: AP News]

This proves well-intentioned productivity tracking can backfire if not clearly communicated.

How to avoid such incidents, then?

Well, just let them know about the tracking. Explain why it’s necessary and how it helps the business with employee monitoring.

Let them know that employee monitoring prevents security breaches, increases employee productivity. And protects against insider threats.

Also, what data you will collect as an employer. And how it’s not going to break employee privacy rather bring positive outcomes.

When companies are transparent about what’s monitored and why, over 50% express comfort with monitoring software.

Moving forward, share details during the onboarding process. Give employees access to their data so they know what has been recorded in activity logs.

3. Respect Employee Privacy

There’s a fine line between responsible monitoring and invading the privacy rights of employees. To maintain this, you have to follow privacy laws, including the Electronic Communications Privacy Act of 1986.

Tracking personal emails, messages is out of bounds. Even GPS tracking, or workplace monitoring without consent, is a no-go. Employees need to be assured that their personal life is not invaded by monitoring software.

That's why tracking should only happen during work hours. Anything beyond that is overstepping, especially for remote workers.

That said, sometimes, the use of keystroke logging or screen video recording creates stress. This is why I suggest monitoring only what impacts work and security through employee activity tracking.

Avoid recording personal details like passwords or banking information. Because 56% workers worry about privacy violations or misuse of their personal data.

Remember, when you respect privacy, employees feel safe, and trust grows.

4. Create a Clear Monitoring Policy

You need a strong approach that explains everything. Especially when you monitor your staff through employee monitoring software.

Plus, your policy should cover the rules and assets that are under surveillance.

As I’ve already explained, employees should know what’s being tracked, how the data is used. And who has remote access.

A well-defined monitoring policy helps them feel secure about workplace surveillance.

You see, workforce turnover is almost 2x higher at companies that use monitoring software as oversight. This shows the importance of fair policies for employee engagement.

A clear policy guides employees, helps managers assess performance through productivity monitoring, and increases accountability.

When you prioritize clarity, fairness, and respect, your employees work more efficiently.

5. Compliance with Regulations

Once you define the policies, make sure they follow these regulations to avoid legal trouble. Otherwise, it will hurt your organization financially and lead to data breaches.

Just how Anthem had to come to a $16 million settlement with the U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) in 2018.

It was because they had violated HIPAA’s Privacy and Security rules.

Organizational policies should protect sensitive data collected by employee monitoring systems. Like HIPAA and the GDPR.

Another thing to keep in mind is that laws change. Keeping up with them and adjusting your practices helps you avoid getting in trouble.

For instance, on July 16, 2020, the CJEU ruled that the EU–US Privacy Shield was invalid under GDPR. That's after Max Schrems, a privacy lawyer, made a complaint.

They stated that it provided poor protection against US government surveillance.

The decision affected thousands of companies. Because they relied on the Privacy Shield framework to transfer EU personal data to the U.S.

6. Limit monitoring Sometimes

Instead of tracking everything, look at specific things that will help you.

If you monitor too much, it can feel like you're invading personal space. And honestly, no one likes constant workplace monitoring.

Statistical data solidifies this idea even further.

See, 43% employees feel over-monitoring violates trust, 31% feel micromanaged, and 23% feel constantly watched via real-time monitoring.

The result can be devastating, as 1 out of 6 people would leave their current job due to the increasing employee monitoring system usage.

This calls for a clear boundary between personal and professional lives. Most importantly for remote workers.

Look for circumstances where you can limit the monitoring. Avoid collecting personal data unless it’s necessary.

The more personal info you gather, the more security measures will be required to protect it.

Stick to what matters, and focus on results that align with your business goals. As well as productivity levels.

7. Allow Employee Feedback

Listen to your workers when they raise concerns about monitoring software. Create anonymous surveys, focus groups, or one-on-one meetings to let employees express themselves.

Address employee concerns as soon as you can. Then make changes if necessary. It keeps everything transparent and increases employee morale.

In reverse, constructive feedback energizes workers. Such as 80% of employees, after they have received meaningful feedback in the past week, are fully engaged.

This exchange of opinions increases productivity levels at the end of the day.

Apploye: The Best Employee Monitoring Software

Apploye is one of the best free employee monitoring software to know what your team is up to at work.

It takes screenshots, tracks activity, and shows which apps and websites they use.

You can track your teamwork remotely, in an office, or from home. It also creates reports on internet usage, active time, and idle time. Thanks to activity logs and real-time dashboard views.

This way, managing productivity and accountability becomes easier than ever. Not to mention the auto-generated timesheets and payroll based on it. Saves tons of hours, which directly translates to more productivity.

And you know what?

It can integrate with other project management tools like Jira, ClickUp, and Asana. It makes Apploye perfect for hybrid and remote teams.

Final Words

If you feel the need to constantly monitor, it’s time to take a step back. Too much monitoring does more harm than good.

It can frustrate employees, lower morale, and even cause burnout. And when that happens, productivity levels drop.

Instead of constant monitoring, focus on giving your team what they need.

Your employees are your biggest asset. Treating them with respect will give the best results for your company.

Be open about why you’re using monitoring software. Involve employees in the conversation, and set clear policies.

Frequently Asked Questions About How to Monitor Your Employees

Is it appropriate for employers to monitor employees?

Yes, when done transparently and ethically. Monitoring should focus on productivity and security, not micromanagement, and must respect employee privacy and legal boundaries.

What does it mean to monitor employees?

Employee monitoring involves tracking work-related activities, such as computer usage, email communication, or attendance, to enhance efficiency, security, and accountability.

How to tell if you're being monitored at work?

Look for signs like login tracking, webcam lights, keystroke software, or notices in your company’s IT policy. Many companies disclose monitoring practices in onboarding or internal communications.

Is it legal to monitor employees at work?

Yes, but laws vary by country and state. It’s important to follow regulations like GDPR and CCPA, obtain employee consent where required, and clearly define monitoring policies.

Should I tell employees they are being monitored?

Yes, you must tell employees before you monitor them. Clearly communicate monitoring policies to employees so they understand what is being tracked and why.

In which way do employers currently monitor their employees?

Employers may use time-tracking tools, activity-logging solutions, and on-screen activity recording software to meet their needs and goals.

Is it ethical for employers to monitor employees?

Most employee monitoring practices are allowed under U.S. law. The federal Electronic Communications Privacy Act (ECPA) gives employers the right to monitor electronic communications.

What are the potential risks of over-monitoring?

Excessive monitoring can lower employee morale, reduce trust, and even lead to legal issues. Employees may feel micromanaged or uncomfortable, which can affect their productivity and job satisfaction.

Is employee monitoring really that common for WFH roles?

Yes, employee monitoring is quite common for work-from-home (WFH) roles. Many companies use productivity tools, time trackers, or screen monitoring to ensure accountability and maintain workflow in remote environments.