Employee Monitoring Software (2026 Guide) - Productivity, Security & Compliance

Updated Jan 2026

A policy-first approach to employee computer & internet monitoring for modern teams � privacy-friendly screenshots, Policy Monitoring Reports, and last-known device location for audits and recovery workflows.

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Employee monitoring software has outgrown the old �surveillance� stigma. Modern privacy-first platforms use blurred screenshots, access controls, and purpose-limited analytics to surface productivity leaks, security risks, and engagement drops � without relying on invasive tactics like keylogging. In this 2026 playbook you�ll learn what to track, how to roll it out transparently, and how MonitUp�s dashboard helps replace spreadsheets and gut-feel with actionable insights.

In 60 seconds: what modern employee monitoring should (and shouldn't) do

  • Should: turn activity data into productivity insights, security evidence, and audit-ready reports.
  • Should: be policy-first (notice, purpose limitation, minimization, access control).
  • Shouldn't: rely on invasive tools like keylogging or live GPS surveillance.
  • Best practice: use last-known device location (city-level) for recovery & reporting � not real-time tracking.

If you're evaluating tools

  • Clear legal notice and written policy
  • Data minimization with purpose limitation
  • Role-based access and audit trails
  • Retention controls and deletion rules
  • Reporting tied to outcomes, not surveillance

Who it's for

Law firms, agencies, and remote dev teams that need audit-ready visibility without invasive monitoring.

What MonitUp collects (and doesn't collect)

Category Collected Not collected
Activity signals Apps used, websites visited, active/idle time, working hours Personal passwords, private message content
Screenshots Blurred/low-detail screenshots (configurable) High-resolution �spy� captures by default
Keystrokes - No keylogging
Location Last-known city-level device location + timestamp (for audits/recovery) No live GPS / street-level tracking
Policy & DLP Policy Monitoring Report (policy-first evidence & visibility) �Hidden monitoring� without notice

Progressive organizations understand that employee monitoring is only a collection method for highly effective productivity indicators that contribute to productivity, efficiency and employee engagement. When used correctly and with transparency, employee monitoring can shed light on people, processes and technology.

In this article, we'll cover the basics of employee monitoring and give you actionable tips for applying and leveraging collected data to create a more transparent workplace.

Choose where to start:


What is Employee Monitoring?

Employee Monitoring is an activity monitoring method used by businesses for a variety of reasons: to help prevent and detect costly data breaches, increase employee engagement, and optimize inefficient workflows. Recently, modern employee monitoring tools have shown greater potential for comprehensive workforce analytics and employee productivity coaching opportunities. These modern tools enable businesses to optimize employee performance, increase employee engagement and reduce process efficiency. Organizations can increase workforce productivity and become more profitable by monitoring and analyzing employee work behavior.

Employee tracking and workforce activity data collected through this method can be analyzed to find trends, patterns, and correlations across teams, groups, and departments to gain insight into business processes and how to improve them. This activity data includes application usage, time spent on unproductive tasks, and what time of day each worker is most productive. Employee monitoring puts workforce activity data in context by giving companies an overall picture of how work is being done inside and outside the office, and provides insights to increase personal, team and organizational productivity for employers and employees alike.

By the time you finish reading this guide, you will be able to determine if employee monitoring is right for your team, which system to choose and how to implement it in your office.


Employee Monitoring Types

Historical methods of employee tracking

The change in technology has offered a wide variety of options for monitoring employee activities. Just 10 years ago, most employee monitoring should have been done locally in the office. How times have changed. With this change in the way work is done and done, companies now have to rethink how and why employee monitoring is implemented and used. We'll briefly cover some of the historical types of employee tracking and jump into a more modern approach.

Internet and Email

These are the two main pillars of employee studies and thus employee monitoring.

We know that as long as the internet is used appropriately and efficiently, it is necessary for productivity. The aim is to discover how the internet is used and to see if there is a way to improve its use by the team.

While other means of communication may lead to reduced email use, understanding email communication and usage can still help with workforce productivity and efficiency.

Computer Activities

Similar to internet monitoring, some of these programs allow employers to monitor desktop application usage. The collected data can be presented in incredibly detailed reports, highlighting how much time people spend working productively, when the computer is inactive, and which apps are getting the most use.

Key Log

Keylogging or keystroke logging is a process that sequentially records the keys that the user types on the keyboard. These programs can also capture screenshots when triggered by predefined keywords.

There are some major drawbacks to keystroke logging though. Some see this as violating workplace privacy.

It is also notorious for its malicious use. MonitUp and modern employee monitoring tools do not include keylogging because it raises employee privacy concerns. A policy-first approach favors open communication and transparent productivity metrics, so keylogging adds little value.

Telephone

You know the message that gave you trouble when you called customer support for the router? "This call can be recorded for quality and educational purposes." By taking part in that call, congratulations, you were an active party in employee phone monitoring! This is a way for a company to check its quality assurance and confirm that its employees are providing you with exceptional customer service.

GPS Tracking

With GPS Tracking, a company car is tracked while in use. It can be helpful for delivery, courier and postal companies to track vehicles, helping drivers travel the most efficient routes. For work computers, most teams prefer last-known device location (city-level) for audits and recovery � not phone-style live GPS surveillance.


Advantages of Employee Monitoring

Advantages of Employee Monitoring

When implemented transparently, employee monitoring can:

  • Enable process analysis and better resource allocation
  • Support engagement through coaching and feedback
  • Reduce software waste and improve tool ROI
  • Provide visibility for security and compliance
  • Improve accountability with audit-ready logs

Effective Management

Insights from activity data help managers identify bottlenecks and balance workloads. When used for coaching, this improves performance and morale without micromanagement.

Recognizing friction early also supports training and career development. Instead of guessing, leaders can use trends to spot where a team member needs help or a process needs simplification.

Discover Unrealized Revenue from a Fully Engaged Team

It is common for organizations to see engagement gaps in workforce surveys. The exact rates vary by industry and region, but the pattern is consistent: disengagement reduces quality, speed, and retention. That is why companies look for tools that surface friction early and support coaching with data.

Some management research describes active disengagement as a silent drain because it can spread to teammates and undermine results. The goal is not to police people, but to identify blockers and give support before issues compound.

When workers disengage or leave, the costs show up in missed deadlines, rehiring, and lost institutional knowledge. Even small teams feel the impact, which is why visibility and early intervention matter.

Behavior analytics can highlight where teams are losing time or getting stuck. Over time, trend views show whose productivity is improving, falling, or stable. Use that context to check in, remove blockers, and reassign work where needed.

Financial Growth

Inefficiency can cost organizations a meaningful share of payroll and operating time; the exact impact depends on role, industry, and process maturity.

You can reduce this loss by implementing a productivity analytics program. Successful, data-driven companies use monitoring insights to increase focus, reduce tool waste, and strengthen retention.

Industry case studies show measurable gains when teams monitor workflows and coach to those insights. Results vary by sector and implementation.

Safety and Security

Data breaches and cybersecurity should always be a concern for businesses. Attackers adapt quickly, and small mistakes can have outsized impact.

Large organizations are particularly vulnerable to breaches, and human error like phishing is a common cause. High-profile incidents show how costly a single mistake can be.

Sometimes the threat is internal; departures or contractor access can lead to unintended data leakage.

Monitoring employees in various forms gives supervisors a clear view of what people are doing and when. And in case of any breach or legal trouble, data logs act as your company's "black box". Your task of discovering the "who, what, when and where" of the event becomes a little easier.


Disadvantages of Employee Monitoring and How to Handle Them

Wow! There are loads of amazing benefits! What's stopping you from starting now? You may have to deal with a perception problem. In analyzing your employees' activities, your goal should be to create a company culture where everyone can do their best and work harmoniously as a team, not spying on them. However, your team may not see it that way at first, and it could create a few downsides.

Security

Activity tracking comes with privacy concerns. People sometimes use work devices for personal tasks and want to keep those private. Employees also dislike the idea of someone watching their every move, which is why scope and transparency matter.

Reassure employees that privacy is paramount. The goal is aggregated insights, not personal surveillance, and the system should avoid sensitive data such as passwords or personal IDs.

Trust

One issue people have with tracking is the trust factor. If they perceive that what you are doing is spying, they may feel resentment or disengage. That is counterproductive to your goals.

You can gain employee support by showing that you're watching for the right reasons. Don't follow just to watch and don't be invasive without good reason. The best practice is to be transparent, so emphasize to your team that the monitoring system is only used as an analytical tool.

Increased Stress Level

Knowing that their activities are being monitored, a person may instinctively work harder, take fewer breaks, and worry about their productivity. All of this can lead to an increase in stress levels for your team and a drop in both morale and employee turnover - the opposite of what you're trying to achieve!

You can help alleviate these concerns if you take steps to explain the types of data you collect and why. Follow your plans to use the software for analytics-related purposes only.

Don't abuse your tools like the manager described in an article from Psychology Today. This boss would repeatedly send a message to an inefficient data processor. The note read, "You work less than the person next to you."

Legal Concerns

The legality of monitoring varies by jurisdiction and implementation. Laws differ on what is allowed, what requires notice, and how data must be handled. We cover this below, but the key point is that compliance depends on where you operate and how you design the program.

This does not mean monitoring is off the table. It means you should design policies and data practices that align with local requirements.


Legal Considerations for Employee Monitoring

  • Which laws apply in your jurisdiction (US state, UK, EU, etc.)?
  • What notice or consent is required for your workforce?
  • How will you limit purpose, minimize data, and secure access?

Is Employee Monitoring Legal?

It's time to address the elephant in the room. There are misconceptions about the legality of data collection. Is employee monitoring legal?

The short answer: it depends on where your company and employees are located and how monitoring is implemented. In many jurisdictions, employers can monitor work devices and networks, but requirements vary and may include notice or consent.

In the US, rules vary by state. In the UK and EU, employers typically need a lawful basis, transparency, and strict data minimization. This is general information, not legal advice.

Best practice: policy-first monitoring

To achieve good results and foster a culture of trust, explain to employees how monitoring will be used before rollout. Define what is collected and not collected, the purpose, when data is collected, who can access it, retention rules, and security controls. Provide a channel for questions or concerns.

Is it right for me?

Before choosing the best employee monitoring software for your team, be sure it supports your goals and culture. Monitoring should be used for coaching, security, and compliance - not surveillance.

Just consider the following:

What are my goals?

Consider your business goals. Write them down and map which metrics help you measure progress. Here are a few possibilities.

  • Cut expenses
  • Improve customer service
  • Strengthen data security
  • Employee retention
  • Optimize office operations
  • Be more efficient
  • Support compliance and audits
  • Reduce micromanagement through clarity

Will Employee Monitoring Software help me achieve these goals?

Take a look at what you wrote, then write about how activity tracking can help.

  • Cut expenses - Find out what software is not used and get rid of it.
  • Improve Customer Service - See the workflow for agents and analyze their efficiency. Speeds up response times.
  • Secure Data Better - Use policy alerts and DLP controls to reduce data risk.
  • Employee Retention - Identify teams that are disengaging and use productivity reports to understand why. Show your team you want to help them succeed.
  • Optimize Office Operations - Use activity trends to reallocate resources and remove low value work.
  • Be More Efficient - Review your business processes and remove unnecessary projects, then reassign work where it matters.
  • Support Compliance and Audits - Activity logs can provide a trail for investigations when needed.
  • Reduce Micromanagement - Monitoring should support coaching and outcomes, not surveillance.

Is it valuable to me to adopt Behavior Analysis Software?

This is a simple cost benefit check. What is the value of improved customer service? How about stronger security, better efficiency, or compliance support?

Compare the value of achieving your goals with the cost of software and the privacy tradeoffs. For many teams, monitoring makes sense when the expected gains outweigh those costs.


Are Businesses Like Me Reaching Their Goals with Employee Monitoring Software?

Employee monitoring isn't about auditing, it's about data.

The market for these tools is evolving quickly. Over the next few years, we will likely see more companies investing in software and other solutions that track employee activity.

Insurance companies, colleges, design firms, schools, and large international companies are just a few examples of teams that choose to analyze behavior. Even restaurants use a form of software that monitors waitstaff by monitoring every related activity. Companies of all types successfully improve their business process from metrics collected by employee monitoring software.


How to Choose the Best Employee Monitoring Software?

OK! You weighed the pros and cons and decided that you can achieve your goals with activity tracking software! We will speak frankly; There are many different types of employee monitoring software. Making a decision can be very difficult! Let's make it a little easier.

Employee Monitoring Checklist Development

Before you spend too much time shopping, you can start by developing a checklist of features your company needs.

You may or may not need features such as:

  • Website blocking
  • real-time monitoring
  • Full access to SQL data
  • Screenshot capture and export
  • USB usage warnings
  • Data Leakage Prevention
  • keystroke log
  • Time spent on activities
  • Ability to categorize activities as productive or unproductive

Also, an important consideration is the way the system works. Most can be put into two categories: User Login and Always On/Scheduled. Some workforce monitoring software gives the employee control to keep track of each task. They use an app to record when they start, stop or pause the project. All data collection is done during this period only.

Others collect data as long as the computer is in use, giving employees the freedom to work without having to think about logging.

Often times, there is an option to schedule this recording by an administrator. Useful if you only want to watch during business hours. The good thing about this type of monitoring is that it provides an unbiased dataset. Without user input, you only have facts that cannot be manipulated.

Once you've narrowed down which features are most important to you, you can start comparing which service offers those features and which one will best meet your needs.

Now is the time to really trim fat. These three informative questions are great for both small and enterprise businesses to ask when choosing the right behavioral analytics system.

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Time to value: when you'll see usable data

Time to value (installation � usable reports)

Most teams can start seeing usable activity data the same day the agent is installed. The real variable is rollout speed: how quickly you can deploy to devices, confirm data upload, and train managers on what �good� looks like.

Setup & customization time

Customization is powerful (productive/neutral/unproductive rules, screenshot blur levels, policy monitoring settings), but it can also slow rollout if you over-configure on day one. Start with defaults, then tune categories and policies after you collect a week of baseline data.

Who needs to be involved?

You do not need a data scientist, but you do need an owner:

  • IT: deployment + allowlisting + access control + retention
  • HR/People Ops: notice/policy text + rollout communication
  • Team leads: coaching workflows (how insights turn into outcomes)

Learning curve

Set expectations: the goal is not minute-by-minute policing. The goal is trends, coaching signals, and audit-ready evidence. A short kickoff session + a simple playbook usually removes most friction.


Limitations & considerations (what to plan for)

Scalability

Scalability is the system�s ability to grow with your business: more seats, more activity volume, and higher reporting frequency. Ask how data is stored, how long it�s retained, and whether reporting stays fast as you scale.

Data quality & context

Activity data is a signal, not the whole story. Deep work can look �idle,� meetings can look �unproductive,� and creative roles may use fewer apps but still produce high value. Use monitoring for trends and coaching � not snap judgments.

Privacy, trust, and culture risk

If employees believe the goal is surveillance, adoption will backfire. The safest path is transparency: a written policy, clear purpose, minimal data collection, limited access, and a defined retention window.

Technical constraints (AV/VPN/offline)

Some endpoint security tools may require allowlisting. VPNs and roaming devices can affect location precision (that�s why �last-known city-level� is best framed for audits/recovery � not real-time tracking).

Integrations & workflow fit

Monitoring is most useful when it fits existing workflows (IT policy enforcement, HR documentation, manager coaching). Before you commit, confirm how exports, alerts, and reporting align with your current tools.


Preparing for Success

Have you decided on the best employee monitoring software for your team? Congratulations! You have real potential to operate your business to achieve the goals you set! You're not ready to go yet. There are a few more points to hit, all of which should be part of your action plan. We'll start with your motivation to stay with us throughout this long guide: Your team!

Involve Your Team

Workplace monitoring rules vary by country and (in the US) by state � and the safest approach is almost always transparency. Even when monitoring work devices is permitted, teams get better outcomes when you provide clear notice, document purpose, minimize data, and restrict access.

Cover these points in your kickoff meeting:

  • What is collected (and what is not collected)
  • Why it is collected (security, coaching, audits � not surveillance)
  • Who can access data and how long it is retained
  • How privacy protections work (blur, access control, retention)
  • Where employees can ask questions or raise concerns

Up to this point we have not detailed the direct benefits for the employee, but quite a few! Your mind is probably spinning with a few ideas, but feel free to steal some of ours for your meeting:

  • Everyone is measured equally with the same data. Because data are not lies, performance is supported by facts, not favoritism.
  • Throughout the data analysis process, workloads will be shared more equally.
  • Your hard work will not go unnoticed. There are many opportunities to be recognized for your efforts!
  • Reports are a tool for coaching and training. The growth areas necessary for career development become clear.
  • Business turns into a game. Increasing your productivity week after week is a friendly contest against your background!

If there is still some unease, be sure to follow the tips below to prove your intentions are legit.


Usage Tips

Be a Reasonable Manager

Be careful when choosing which websites to block and block in moderation. YouTube may be the first site to consider throttling, but think about it. YouTube has many helpful tutorials that can build skills for your team. Block and filter websites rightfully, but don't overdo it. Also, never use your employee monitoring tool to punish employees.

Be Flexible With Expectations

Don't expect every person to work eight hours straight. Do you have this stamina? People need a break! The key to ethical employee monitoring is to remember that people are people. You get distracted and take breaks, don't punish people for keeping their sanity intact. You stressed that employees need breaks and it's perfectly fine to take reasonable breaks when they need it. Set limits but allow flexibility for some personal use. Maintaining the right work/life balance is essential for the happiness of your team.

Don't be creepy.

This guide has emphasized many times that activity monitoring is not a tool to be used for spying, so don't do it! You watch a person's every move. If you can name Stephanie's Facebook friends because you've viewed their screenshots, you've gone too far! Again, you need to understand that this tool is strictly for controlling productivity and improving company performance.

Customize

With the amount of customization available in some software, you have the flexibility to tailor your tools to your needs. Remember that one size does not fit all, so some applications and tasks that a company may find inefficient are a necessity for doing business. Customize how the software responds to the use of these applications. If it's a feature, set up watch schedules that include lunch breaks and not after office hours. Take a look at all you can do and make your software work best for your team.

Create an Official Policy

If you involve your team in the implementation as we suggest, it makes everyone involved feel even more comfortable having a policy that puts everything in writing. To make your job easier, summarize what you covered in your launch meeting! Cover the software you use, what it does, your intentions for using it, and why it's essential for career advancement and company growth.

Some recommendations:

  • Put it out in everyday language. No need to sound like a legal expert.
  • Don't use language that makes you look like a shady government agency.
  • Be open. Avoid deceiving people knowingly or unknowingly.
  • Consider what to do if an employee has questions or concerns.
  • Include a place for signature to show that they understand and accept the terms.
  • Do this before you start using the software!

Be Reachable

Adopting employee monitoring software can be stressful for employees at first. Try to see things from their perspective and make yourself ready and willing to hear about their concerns. He's not the type to ignore anyone's thoughts as paranoia. And they might not even have worries! Maybe some team members are excited about the software and have ideas for how to use it in ways you never thought possible.

Be Creative

Finally we come to the fun part! Your hard work starts to pay off here. We've discussed some great examples of how to use the software, but you can get more creative than that! Think about it, employee monitoring may have started as a way to keep tabs, but it's evolved from that into a business insight and analytics tool.

You are only limited by your imagination. Start by presenting a question or problem that needs a solution and consider how you can use your software to solve it. Here's a slight nudge in the right direction:

How many employees have fully embraced PowerPoint after our extensive training sessions? How is the use of Facebook for the whole company? Are there patterns in different departments? There is a way to make life easier for our freelancers is it? Tired of sending messages from multiple channels. Which one is the most used by people? Why do we have such high employee turnover?


FAQ

What is employee monitoring software?

Employee monitoring software helps organizations understand work activity signals (apps, websites, active/idle time, working hours) to improve productivity, security, and compliance when used transparently with clear policies and access controls.

Does MonitUp record keystrokes?

No. MonitUp does not include keylogging. It focuses on productivity and security signals such as app/website usage and privacy-friendly screenshots.

What does MonitUp collect and not collect?

MonitUp collects apps used, websites visited, working hours, and privacy-friendly screenshots. It does not collect passwords or private message content, and it does not use keylogging.

How fast can we see reliable data?

Most teams see usable activity data the same day the agent is installed. The biggest variable is rollout speed and a short baseline period to tune categories and policies.

What location tracking does MonitUp provide?

MonitUp supports last-known, city-level device location with a timestamp for audits and recovery workflows. It does not provide live GPS or street-level tracking.

What should a workplace monitoring policy include?

A clear policy should explain what is collected and not collected, the purpose, when data is collected, who can access it, retention rules, security safeguards, and how employees can ask questions or raise concerns.

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