Are you being watched? The hidden costs of employee surveillance

As office attendance has shifted in the wake of the pandemic, some employers have turned to employee tracking software to keep an eye on employees while they work remotely. But these tools, including activity monitors and location trackers, could be negatively influencing employee job satisfaction, stress levels and loyalty.

A survey of more than 1,000 U.S. employees conducted by Software Finder found that one in five employees are monitored by an activity tracker. One in three employees share their computer’s location with their employer and one in seven share their phone’s location, the survey found. 

Although activity tracking is intended to improve productivity, tracked employees reported equal productivity levels as untracked employees. But tracked employees reported higher stress levels, worse mental health and less job satisfaction than employees who are not tracked. More than one-quarter of tracked employees said they distrust their employer and half of tracked employees feel pressured to work more hours, the report found.

Tracking employees may backfire in other ways, the survey discovered. Fewer tracked employees than untracked employees would recommend their company to others, and tracked employees are twice as likely to feel disloyal to their company. More than one-third of employees who are tracked said they are looking for a new job. That is double those who are not tracked, the report said. 

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More than half of employees believe tracking their activity or location violates their privacy. Seventeen percent of tracked employees said they have used their own tools to circumvent monitoring, including “mouse jigglers” that give the appearance they are working. Meanwhile, half of managers who are tracking employee activity said they plan to expand their surveillance efforts over the next year. 

Tech employees were the most likely to be tracked by their employer, with one in three being monitored. A similar percentage of finance workers are being tracked by their employer, while 21% of retail employees, 20% of healthcare workers and 17% of educators reported being tracked.

The survey also found bigger companies are more likely to track their employees. Less than 10% of micro companies (1-9 employees) track their employees while 24% of companies with more than 250 employees monitor their employees, according to the survey.