Secure & Privacy-Focused Employee Monitoring Software

Employee Monitoring: Types, Pros & Cons [+Best Solutions]

It starts small. An employee logs in late but marks themselves present. A few missed deadlines turn into a pattern. A confidential document is accessed at an odd hour. 

Then, one day, a critical piece of company data is accidentally leaked—or worse, deliberately stolen. Isolated incidents? Maybe. But how do you know for sure? 

For business leaders, these moments often trigger an uncomfortable realization: perhaps you don’t have the visibility you thought you did. To make it worse, the workplace has changed. Remote teams, digital workflows, and cloud access have created new blind spots in how we manage and secure our operations.

A possible solution to these challenges is implementing an employee monitoring software. 

But this approach raises important questions about privacy, trust and ethics:

• Where is the line between necessary oversight and invasive surveillance? 
• How do you protect your business without alienating your team?

Tough questions, but valid. To answer this, let’s start with the basics: 

What is Employee Monitoring?

Employee monitoring is the process of tracking and analyzing employee activities to improve productivity, ensure security, and maintain compliance. 

It provides insights into how employees work, the tools they use, and potential risks within an organization. 

For example, let’s say you wanted to track employee engagement in a remote team. You could use a computer monitoring software that records active and idle time, tracks applications, website and internet usage, and provides reports on work patterns. 

Recommended → Employee Monitoring Ethics for Employers 

Types of Employee Monitoring

Time Tracking

Records when employees start and stop working, how long they spend on tasks, and their idle time. 

How It Works

• Uses automated timers, login/logout tracking, or manual entries.
• Some tools monitor keyboard and mouse activity to measure active work periods. 
• Advanced systems integrate with task management software to log time per project. 

Application & Website Monitoring

This method tracks which applications, software, and websites employees use during work hours to measure productivity and prevent distractions. 

How It Works

• Records the names of open applications, URLs visited, and the duration spent on each. 
• Categorizes websites into productive (work-related), neutral (news, research), and unproductive (social media, streaming, gaming). 

• Flags excessive use of distracting websites (e.g., social media, gaming, shopping sites). 

Keystroke Logging

Keystroke logging records every key pressed on a keyboard, capturing typed content in real-time. It is mainly used to track written communication, password inputs, and text-based activities for security audits and compliance monitoring. 

How It Works

• Logs all keystrokes, including letters, numbers, and special characters. 
• Flags specific terms (e.g., “confidential,” “transfer funds,” “resignation”) to alert administrators. 
• Associates keystrokes with specific timestamps and applications to provide context. 

Screen Recording

Captures visual activity on an employee computer, either through static screenshots or continuous live video feeds. It is often used to verify work processes, investigate incidents, or ensure compliance. 

How It Works

• Takes periodic snapshots of an employee’s screen (e.g., every 5 minutes). 
• Allows supervisors to watch live activity as it happens. 
• Some systems start recording only when certain actions occur, such as accessing sensitive files. 

GPS Tracking

Tracks employee locations using GPS, commonly used for remote employees, field teams, and mobile workers. 

How It Works

• Employees use GPS-enabled devices or mobile apps.
• Employers set geofences and video surveillance to track movement within specific work zones.
• Logs timestamps when employees enter or leave designated locations. 

Recommended → How To Know If Remote Employees Are Working 

Email Monitoring

Analyzes internal and external emails, messages, and chat logs to detect security risks or policy violations. 

How It Works

• Scans for unauthorized file sharing, especially large downloads or external forwarding of company documents. 
• Filters emails for sensitive terms like “sensitive,” “bank transfer,” “SSN,” or “password.” 

AI-Powered Behavior Analysis

Uses AI and pattern analysis to detect unusual employee behavior that may indicate security risks or burnout. 

How It Works

• Assigns risk scores based on login patterns, file access, and data transfer activity. 
• Detects behavioral anomalies like sudden spikes in file downloads or unusual login locations. 

Why Companies Need Employee Monitoring

Boosts Productivity Through Data-Driven Workflows

Employee monitoring provides organizations with concrete, measurable data on work patterns and output. Rather than relying on subjective impressions, managers can identify precisely when productivity peaks and wanes throughout the day or week. 

For example, team leaders discovering that meetings are more productive in the morning or that creative tasks benefit from uninterrupted afternoon blocks. This level of visibility enables them to make informed decisions about: 

• Who is productive, and 
• Under what conditions

Recommended → Employee Productivity 101: Essential Strategies for Success 

Improves Compliance and Regulatory Adherence

Regulatory compliance is a major concern for businesses operating in finance, healthcare, legal, and government sectors. 

For the most part, they must document, monitor, and enforce policies to protect sensitive information and ensure ethical business practices. With employee monitoring these companies can automate the entire process by maintaining logs of employee activity, data access history, and security protocols. 

This helps them prove who accessed sensitive information, when it was accessed, and whether it was shared externally. Should an audit occur, they have clear documentation to prove compliance. 

Recommended → Data Governance & Compliance: Navigating the Digital Maze 

Increases Transparency and Trust in the Workplace

While monitoring is often viewed as a means of control, it can actually create a more transparent and accountable work culture. When implemented with clear policies and open communication, monitoring helps businesses set fair expectations, define performance benchmarks, and create a structured work environment. 

This type of transparency benefits both employers and employees;

• Workers gain clarity on how their efforts contribute to business goals. 
• Managers ensure that everyone is held to the same standards. 

Companies that embrace this ethical monitoring practices experience higher engagement, reduced conflict, lower employee turnover and stronger workplace relationships. A typical example is industrial laundries in Australia, where they discovered that employee productivity increased by 5-10% by implementing real-time scoreboards [*]. 

Recommended → Improving Productivity While Managing Compliance │Teramind Blog 

Improves Remote Workforce Management

The shift to remote and hybrid work models has made it harder for employers to track performance through traditional management methods. Without direct supervision, companies run the risk of disengagement, productivity loss, and reduced accountability. 

Employee monitoring bridges this gap by offering visibility into remote work habits, ensuring that employees remain productive regardless of location. 

It also provides employees with structure and routine. Many remote workers struggle with maintaining discipline and separating work from personal life. With proper monitoring, they receive clarity on expectations, helping them stay organized and engaged. Companies, in turn, can ensure that remote work remains a sustainable model without sacrificing efficiency or collaboration. 

Recommended → The Right Way to Monitor Employees Working From Home 

Prevents Insider Threats

Cybersecurity threats are no longer limited to external hackers—insider threats pose an equally significant risk to organizations. According to Cybersecurity Insiders recent report, 83% of organizations experienced at least one insider attack in the past year [*]. 

Whether intentional or accidental, unauthorized access, data leaks, and mishandling of sensitive information can have severe consequences. Employee monitoring systems help mitigate these risks by tracking access logs, monitoring file transfers, and identifying suspicious activity in real time. 

This approach to security ensures that companies can detect anomalies before they escalate into full-scale data breaches. It also creates a security-first culture where employees understand the importance of handling confidential data responsibly.  

Recommended → How to Detect Insider Threats (And Stop Them From Happening) 

Best Practices for Ethical & Effective Employee Monitoring

Establish Clear Objectives

Before implementing any employee monitoring system, organizations need to define clear and justifiable objectives. Monitoring should never be a blanket surveillance tool, but rather a targeted solution that aligns with specific business needs. 

Ask yourself:

• Are we trying to improve productivity and efficiency?
• Are we looking to strengthen cybersecurity and prevent insider threats?
• Are we ensuring compliance with industry regulations?
• Do we want better insights into our business processes?

Once these objectives are clearly outlined, it becomes easier to select the right tools, establish policies, and communicate the purpose of monitoring to employees. If monitoring is implemented without a strong rationale, it risks being perceived as intrusive rather than beneficial.

Maintain Full Transparency

The biggest mistake a company can make is monitoring employees without their knowledge. Secret surveillance erodes trust and often leads to legal consequences, depending on data privacy laws in various regions. 

To ensure ethical monitoring, organizations must: 

• Disclose what is being monitored (e.g., emails, internet activity, software usage, screen time). 
• Explain the reasons behind monitoring in clear, understandable terms.
• Specify the extent of data collection: will it track activity during work hours only, or does it extend to personal devices and remote work?
• Communicate how the data will be used. E..g., for performance improvement, security, compliance, etc. 
• Allow employees to ask questions and provide feedback on the policy.

A transparent approach enables mutual understanding rather than fear. Employees may not like being monitored, but if they understand the reasons and boundaries, they are more likely to accept it. 

Recommended → Balancing Privacy & Security in Remote Work Monitoring 

Implement Role-Based and Minimal Data Collection Policies

Just because you can monitor every aspect of employee activity doesn’t mean you should. Over-collection of data leads to privacy concerns and creates unnecessary legal and ethical risks. A role-based monitoring approach ensures that employees are only monitored in ways relevant to their jobs. For example:

• IT and security teams may require more extensive activity tracking due to their access to sensitive data. 
• Customer service agents may have chat and call monitoring to ensure compliance and quality assurance.
• Marketing and content teams may require minimal monitoring since their work is mostly creative and independent. 

Additionally, limit monitoring to work-related activities only. Tracking employee emails, private messages, or non-work browsing history crosses an ethical boundary and could lead to legal repercussions. 

Choose Monitoring Tools That Are Ethical and Secure

Not all employee monitoring tools are created equal. Some offer stealth surveillance, while others prioritize transparency and compliance. Organizations should opt for tools that align with ethical monitoring practices, including: 

• Privacy-focused monitoring tools that provide insights without intrusive surveillance.
• Configurable settings that allow organizations to fine-tune what they track.
• Data encryption to ensure collected information is secure and protected from breaches.
• Access controls that limit who can view and manage monitoring data.

The goal is to balance visibility with privacy, ensuring that employees feel monitored for the right reasons, not controlled. 

Focus on Insights, Not Surveillance

Employee monitoring should be used as an insight-driven tool, not a method of control. If the system pushes managers into micromanaging, it becomes counterproductive. Instead of fixating on small details (e.g., how often employees move their mouse), focus on bigger trends, such as: 

• Work patterns: Do employees struggle with certain tasks?
• Productivity bottlenecks: Are processes slowing down efficiency?
• Security risks: Are unauthorized logins or unusual data transfers happening?

By shifting from individual scrutiny to organizational improvement, companies can use monitoring to create positive changes rather than an environment of fear.

Regularly Review and Update Monitoring Practices

Employee monitoring should not be a “set-it-and-forget-it” system. As technology, regulations, and workplace dynamics change, companies must reassess their monitoring practices to ensure they remain ethical, effective, and compliant. 

• Conduct periodic audits to evaluate whether monitoring practices align with business needs.
• Gather employee feedback: Are they comfortable with how monitoring is implemented?
• Review legal compliance: Are monitoring policies still in line with regional privacy laws? 
• Assess effectiveness: Is monitoring improving productivity and security, or is it causing more harm than good?

A flexible and evolving approach ensures that monitoring remains a beneficial tool rather than a rigid, outdated system that damages workplace culture.

7 Best Employee Monitoring Software in 2025

1. Teramind

Teramind is a leading employee monitoring software that provides organizations with real-time insights into employee activities, security risks, and productivity trends. 

It offers an advanced suite of monitoring, analytics, and automation tools that enable companies to track user behavior, detect insider threats, and optimize workforce efficiency. 

Key Features: 

• Intelligent Policy & Rule Engine. Enables organizations to create automated rules and alerts based on predefined conditions. Admins can configure policies to trigger real-time notifications, session recordings, or automated responses when employees violate security protocols or compliance requirements. 
• Keylogging. Allows businesses to analyze typed text, clipboard activities, and even contextual meaning behind user interactions. 

• Live View & Remote Control. The Live View functionality provides administrators with the ability to watch employee screens in real-time, while Remote Control allows them to take over a system if unauthorized activity is detected. 

• Shadow IT Detection. Identifies unauthorized applications or devices being used within the organization. Combined with Endpoint Protection, it prevents data leaks by restricting the use of removable storage and external applications. 
• User Behavior Analytics (UBA). Provides deep insights into user activities by continuously analyzing patterns and detecting deviations from normal behavior. 

2. Hubstaff

Hubstaff is a lightweight productivity and time-tracking solution designed for remote and hybrid teams. It enables businesses to monitor work hours, track project progress, and ensure teams stay on schedule. 

Key Features: 

• Workforce Productivity Insights. Provides a detailed breakdown of work efficiency, including activity levels, hours worked, and project progress. 
• Stealth Mode. Discreetly tracks time and productivity without recording keystrokes or monitoring private activities. 
• Idle Time Detection. Sends alerts or auto-pauses tracking to prevent overbilling. 

3. ActivTrak

ActivTrak positions itself as a workforce analytics solution, providing businesses with productivity insights without excessive intrusion. It helps companies understand work habits, optimize workflows, and reduce inefficiencies.

Key Features: 

• Productivity Coach. Analyzes work patterns, offering suggestions for better time management and balanced workloads.
• Workload Balance Dashboard. Helps managers identify overworked and underutilized employees by analyzing engagement levels, work intensity, and idle time.
• Activity Classification & Categorization. Automatically classifies applications, websites, and tasks into productivity categories based on their relevance to work. 

4. Veriato

Veriato is a user-activity monitoring solution designed for high-security environments. It specializes in detecting data leaks, and insider threats using AI-powered behavioral analysis. 

Key Features: 

• Cerebral AI Engine. Continuously monitors user activity and applies behavioral analytics to detect anomalies, high-risk behaviors, and potential security threats.
• Dark Web Monitoring. Scans for company credentials, leaked sensitive data, or insider threat indicators on the dark web. Also alerts security teams if employees attempt to send corporate data to unauthorized external locations. 

• Video Playback. Recorded sessions can be searched and replayed to understand exactly what happened before a security incident. 

5. Time Doctor

Time Doctor is a time tracking software designed for businesses, remote teams, and freelancers. It offers precise tracking of work hours, task management, and employee efficiency insights, helping organizations improve productivity, manage payroll, and reduce distractions. 

Key Features: 

• Real-Time Activity Monitoring. Managers can see what employees are working on, their tasks, and productivity levels at any given moment. Also includes work session breakdowns and time spent on specific activities. 

• Distraction Alerts. Notifies employees when they spend too much work time on non-work-related websites or apps. 

• Automated Payroll System. Integrates with PayPal, Wise, and other payment platforms, allowing businesses to automatically calculate work hours and process payments for employees and freelancers based on tracked time.

6. Insightful

Insightful (formerly Workpuls), is an employee monitoring solution that helps businesses optimize efficiency, track time accurately, and gain deep insights into work habits. 

Key Features: 

• Stealth & Visible Monitoring Modes. Provides businesses with two modes of operation
  • Stealth Mode: runs discreetly in the background for confidential investigations, 
  • Visible Mode: informs employees that monitoring is active. 

• Workforce Intelligence Dashboard. Provides deep insights into team productivity, work trends, and operational efficiency. 

• Manual Time Entries. Allows workers to add manual time to their logged hours. 

7. Monitask

Monitask is an employee productivity monitoring software that helps businesses oversee remote and in-office teams. It provides detailed insights into employee work habits through time tracking, automated screenshots, and productivity analysis. 

Key Features: 

• Screenshot Monitoring. Captures automatic screenshots at random intervals to verify employee activity. Admins can adjust the frequency of screenshots to balance monitoring needs with employee well-being. 

• Computer Activity Monitoring. Logs the applications and websites employees access during work hours, offering insights into potential distractions or unproductive activities. 

• Task Management. Managers can create projects, assign tasks, and monitor team progress through Monitask’s built-in project management functionality. 

The Bottom Line: Monitor to Support Your Employees

The hard fact is this: employees don’t like being monitored—no one does really. It feels intrusive, like someone’s constantly looking over your shoulder, questioning your every move. But monitoring doesn’t have to be the enemy of a positive workplace. When done right, it feels more like a support system than surveillance.

The key is balance. It’s not about whether you monitor—it’s about how you monitor. If employees understand that monitoring is there to support them, not to scrutinize them, they’re far more likely to embrace it.