Employee Monitoring Statistics Around the World

Employee monitoring is a great way to ensure your team is on-task so you can catch mistakes early and gain valuable insight into how your employees work. However, if you and your company go about it the wrong way, you could find yourself in serious trouble.

As a result, whether you’re looking to implement employee monitoring software or ensure your current practices are compliant, you need to be aware of what’s legal and what’s not.

This guide examines employee monitoring statistics, practices and laws worldwide, and the most popular types of monitoring.

Key Takeaways

Employee monitoring refers to when a company tracks and/or views the activity of its workers.
Some of the most common types of employee monitoring include video surveillance, email monitoring, website/app tracking, keyloggers, and screen monitoring.
Companies in the US are entitled to monitor employees in most cases, but prior notice is required in a few states.
Rules and regulations for monitoring employees vary from one country to the next.

Table of Contents Table of Contents

Key Takeaways
How We Researched This Topic
What is Employee Monitoring?
Types of Employee Monitoring
How Common Are the Various Types of Employee Monitoring
Employee Monitoring in the US
Employee Monitoring Statistics
Sector-Specific Monitoring
Employee Monitoring Around the World
Conclusion
FAQs
References

Table of Contents

Key Takeaways
How We Researched This Topic
What is Employee Monitoring?

Show Full Guide

Types of Employee Monitoring
How Common Are the Various Types of Employee Monitoring
Employee Monitoring in the US
Employee Monitoring Statistics
Sector-Specific Monitoring
Employee Monitoring Around the World
Conclusion
FAQs
References

How We Researched This Topic

To create this guide, we collected numerous employee monitoring statistics from multiple sources. We reviewed the laws, rules, and regulations surrounding employee monitoring not only in the US but also around the world.

What is Employee Monitoring?

Employee monitoring is when a company tracks and views the activity and behaviors of its employees. Businesses use several tools to oversee employee activity, such as monitoring software, GPS, and video surveillance.

The global demand for employee monitoring software has grown rapidly in recent years. According to stats from the European Commission’s Joint Research Centre (JRC), demand for employee monitoring software grew by 108% from April 2019 to April 2020 and 70% from May 2019 to May 2020. This demand has continued, including a 75% increase in January 2022.

Why Do Companies Monitor Employees?

Business owners monitor employees mainly to improve productivity and optimize workflow. By monitoring employees, companies can ensure they’re on-task, not wasting time, and working efficiently. This monitoring could also identify outdated processes or procedures that take up more employee hours than they should.

According to a survey by Resume Builder, 97%of business leaders believe that implementing employee monitoring has increased productivity. Of the participants, 63%strongly believe that monitoring has improved employee productivity, with another 34% somewhat believing it had an impact. Only 3% of people believe it had no impact.

Companies also monitor employees for security purposes. Employees often have access to files, databases, and documents containing sensitive details and data. If this information finds its way into the wrong hands or gets leaked, it can be disastrous. There have been several major data breaches in recent years.

According to IBM, the global average cost of a data breach is nearly $5 million, and monitoring your employees can help reduce the chances of your business suffering from one. By monitoring their activity, you’ll ensure they’re following proper safety procedures, using software appropriately, and not downloading potentially harmful apps or programs.

Also, the more you know about your employees’ behavior on company devices and how they handle sensitive information, the sooner you’ll be able to correct small issues before they become a major problem.

Similar to boosting productivity, employee monitoring improves performance, too. If you have insights into how an employee works, you can identify possible weak points where more training, coaching, or feedback may help them become a better worker.

Types of Employee Monitoring

There are several popular employee monitoring tools that employers use to keep tabs on their teams.

Keyloggers

A keylogger is an employee monitoring software program that records and saves every key a person strikes on a keyboard. As a result, employers know exactly what their employees are searching for and what messages they’re sending to others.

In addition to business use, keyloggers are often used for nefarious purposes by hackers or cybercriminals looking to learn passwords or other confidential information from unknowing victims. This is because they’re generally difficult to detect and work in the background.

In fact, keylogging is among the top five most common types of malware attacks, making up 6% of all detected attacks.

Email Monitoring

Companies monitor employee emails to prevent sensitive details or data from being shared with the wrong people. Email monitoring software also ensures that everyone follows company guidelines when sending emails.

According to research, the average worker receives 65 emails every day and sends around 25, providing plenty of opportunities for data to get leaked or guidelines to get violated.

The software provides valuable insights into how your business uses emails and any concerning patterns that are developing, keeping your company compliant with regulations.

However, employers normally only monitor emails on an employee’s work email address and generally won’t have the right to search through a personal email account without consent.

Website and App Tracking

Many companies also monitor employees’ online activity, including the websites they visit, the programs they use, and the apps they open. These tools also track how long an employee spends on these sites or platforms.

Companies can set up alerts and notifications, such as when an employee visits a certain site or has passed a certain threshold for time on an app, so they’re always in the know.

Without monitoring in place, employees may spend hours on Twitter, Reddit, or other sites when they should be working. Tracking this activity keeps employees on task and prevents the time-wasting that has become so prevalent in many offices.

In fact, according to poll data from Monster, 42% of workers spend up to four hours on social media at work, not including work-related social media like LinkedIn or company accounts.

Video Surveillance

Video surveillance helps ensure employees are working when they’re supposed to and are abiding by all safety or security-related guidelines your organization has. While all businesses can use video surveillance, it’s often found in factory settings or stores where employees deal directly with cash or valuables.

Employee theft is a common problem that costs companies billions of dollars annually, and video surveillance ensures you can catch these individuals in the act.

It’s also useful for providing evidence during injury claims or other disagreements/issues at work. This may seem like a small detail, but fraudulent injury claims cost companies a lot. According to a report from the Coalition Against Insurance Fraud, employees make $9 billion worth of false injury claims each year, looking to get workers’ compensation.

Screen Monitoring

Screen monitoring software keeps track of everything on your employees’ screens. It’s similar to website/app tracking, but it’ll show you exactly what they’re doing on the site or app instead of simply informing you of which site they’re on.

Some surveillance software monitors screens in real time, while others take periodic screenshots, such as once every 10 minutes. While this software is commonly used on computers, there are also screen recording apps for monitoring other devices like phones and tablets.

This software ensures your team focuses on work and doesn’t waste time online. For example, around 35% of American workers admit to online shopping while at work, and screen monitoring helps deter this behavior.

GPS Tracking Devices

While it doesn’t make sense for every organization, GPS tracking devices also monitor employees. They track their location and other details, like how they got there and how long they’ve been there. GPS tracking is common in industries like trucking, construction, and delivery.

This tracking is often found on vehicles in a fleet, but there are also GPS phone trackers available.

As for why companies use GPS tracking, a study found that:

39%of companies use it to monitor mileage
33% use it to increase safety on the job
29% use it to optimize routes
29% use it to monitor employee locations
27% use it to coordinate jobs based on location
22% use it to improve appointment scheduling
19% use it to set up coverage areas

How Common Are the Various Types of Employee Monitoring

While there are several types of employee monitoring options for companies, how commonly are they used? A 2023 study found the following data on employer surveillance activities:

66% of companies track the websites that employees visit
53% track app usage and downloads
53% use real-time screen monitoring
33% use periodic screen captures
46% track active work hours
30% monitor chat and message logs
27% monitor computer files
22% transcribe all calls

Here are a few additional stats using data collected by Zipdo:

43% of companies monitor emails
32% monitor social media usage
39% track employee keystrokes
52% use video surveillance to monitor remote employees

Employee Monitoring in the US

Next, we’ll look at the laws, regulations, and prevalence of employee monitoring in the US.

Federal Regulations

One of the main pieces of legislation that provides the framework for employee monitoring in the US is the Electronic Communications Privacy Act (ECPA). Originally passed in 1986, this law protects electronic, oral, and wire communication both while it’s in transit and while it’s stored. It prevents the unauthorized access, disclosure, or use of these communications to keep them private.

However, some exceptions exist to the rules laid out in the ECPA, specifically for businesses. One major provision is that employers can track and monitor employees if there’s a business purpose or reason, such as improving productivity or ensuring company resources aren’t being misused.

However, there are a few restrictions. For example, employers can’t install cameras where employees have a reasonable expectation of privacy, such as the bathroom or changing room. Also, companies can’t use GPS tracking on employees 24 hours a day, only while they’re working.

If you or your organization violates the ECPA, you could face up to five years in prison and a fine of up to $250,000. Victims may also sue for damages.

In addition to the ECPA, there are a few other national laws and bills that regulate monitoring and privacy rights. For example, the Computer Fraud and Abuse Act (CFAA) says it’s illegal for employers or anyone else to access an individual’s personal device without consent or a valid reason.

There’s also the American Data Privacy and Protection Act (ADPPA), which has yet to be enacted. It relates to data collection, storage, and monitoring and says that employers must only process and transfer data collected from employees for legitimate reasons.

While the ECPA and other federal regulations are the baseline for how companies across the US monitor employees, individual states are free to add their own restrictions and rules.

State-by-State Breakdown

While most states follow federal laws regarding monitoring and the privacy of employees, a few have added extra limitations on how companies monitor their workers.

For example, Illinois enacted the Biometric Information Privacy Act (BIPA) in 2008, which requires all companies to obtain written consent from employees before collecting biometric data, such as fingerprints and face scans.

Texas has a similar law called the Texas Data Privacy and Security Act (TDPSA), which also requires businesses to undergo regular data protection assessments.

In Connecticut and Delaware, employers need to alert every employee—in writing—about the types of workplace monitoring it uses.

New York recently added more requirements related to employee monitoring to its longstanding Civil Rights Law. Companies that lawfully monitor employees need to provide written notice upon hiring, ensure employees acknowledge the notice, and post the notice in a visible place.

California has one of the most detailed laws for enhancing privacy rights, the California Consumer Privacy Act (CCPA), and its 2020 amendment, the California Privacy Rights Act (CPRA). The CCPA and CPRA give employees the right to know what data gets collected, limit the use of sensitive information, and limit how long a company keeps their personal information on record.

Employee Monitoring Statistics

Here are a few eye-opening statistics about employee monitoring.

Nearly 80% of Companies Use Some Form of Employee Monitoring

78% of employers use employee monitoring software to keep track of employees. However, despite the high usage, 83% of employers think there are ethical concerns about monitoring workers.

Employee Monitoring Is Popular in a Variety of Industries

Advertising and marketing – 83%
IT – 77%
Construction – 71%
Business and finance – 60%
Manufacturing – 60%
Personal care services – 52%
Education – 49%
Healthcare – 46%
Retail – 42%

Almost All Remote Companies Use Employee Monitoring Software

96% of remote companies use employee monitoring solutions. Of this group of respondents, only 5% have employees unaware they’re being monitored.

Most Companies Have Only Been Monitoring Employees for a Few Years

Despite the prevalence of employee monitoring, it’s still relatively new for most companies. Here are the responses employers gave about when they started using employee monitoring software:

9.5% said before March 2020
36.5% said between March 2020 and March 2021
33.7% said between March 2021 and March 2022
20.2% said between March 2022 and March 2023

One in Three Employees Have Used Their Work Computer for Purposes They’d Be Embarrassed for Their Employer To Find Out About

Around a third of employees have used a work computer for an activity they’d be embarrassed if their employer knew about. These activities include personal chats, medical-related searches, visits to job application websites, and inappropriate sites.

Over 50% of Workers Feel Stressed and Anxious About Workplace Surveillance

59% of employees feel stressed or anxious about their employers monitoring their online activity. Here’s a closer look at the reasons:

41% constantly worry about being watched
38% feel pressure to be more active online, even if it hurts their productivity
36% feel pressure to work longer hours
36% feel pressure to work more/as much as other colleagues
32% take fewer breaks throughout the day
20% feel dehumanized because of the surveillance

Also, 48% of workers feel so uncomfortable that they’d take a pay cut if it means not being monitored. A quarter said they’d take a 25% pay cut to avoid monitoring.

Generally, Employees Are Okay With Being Monitored

Despite this stress and anxiety, most employees say they’re okay with employee monitoring. 87% of workers think that companies monitoring in person (by observing who’s working and having people clock in/out) is appropriate, and 62% think it’s appropriate for employers to use technology to monitor workers.

Over Three-Quarters of Employees Trust Their Employer To Protect the Data It Gathers

78% of workers trust their employers to protect the information they gather on them through monitoring.

Sector-Specific Monitoring

While many laws and regulations apply to all businesses, there are also sector-specific monitoring regulations certain organizations must abide by.

Public vs. Private Sector

Generally, the public sector (government agencies and employees) has stricter regulations than the private sector. This is largely thanks to the Privacy Act of 1974 and its amendments.

The law dictates how federal agencies can collect and use data and prevents disclosing this information without consent, except in a few cases. For example, an exception is that the government can share some data with the Census Bureau to use in statistics. The Privacy Act of 1974 also lets people request their information and correct any mistakes.

While all data leaks cause harm, leaking sensitive government data is a major threat to national security, compared to private company data leaks that are generally only harmful to the company and its customers.

As a result, government officials need to be careful about how information gathered from monitoring is stored, shared, and used. On the other hand, a private company just has to follow the standard legal compliance requirements laid out in the ECPA and other federal/state laws that may apply to it.

Healthcare

Organizations in the healthcare industry must comply with the rules outlined in the Health Insurance Portability and Accountability Act (HIPAA). This federal law applies to any company or organization that handles protected health information, such as medical records, lab results, biometric identifiers, and account numbers.

HIPAA protects this sensitive information and provides the standards for how the data is used and secured. While the information is freely used for treatment, permission is required for marketing activities.

The HIPAA Security Rule and the HIPAA Privacy Rule establish the exact standards. The Security Rule requires appropriate safeguards to ensure the information is kept secure and confidential. The Privacy Rule sets limits and conditions on how the data gets used and shared.

While monitoring employees in this industry, companies must ensure they’re not accidentally collecting or sharing this sensitive data. For example, if a company captures screenshots or records keystrokes that feature this information and it gets leaked or seen by the wrong person, it could find itself in some legal trouble.

Popular monitoring methods used in healthcare include time tracking, internet and app usage tracking, and keyboard and mouse activity monitoring. Due to the industry’s heavily regulated nature, many healthcare companies also use continuous background screening, which is when businesses monitor employees for criminal activity after they’ve been hired.

Financial Services

Companies in the financial services industry must abide by several laws and regulations, and monitoring is a great way to ensure a team isn’t breaking any rules. Without monitoring, it’s challenging to keep track of every employee and ensure everyone is doing things by the book.

Some laws these companies need to be aware of include the Gramm-Leach-Bliley Act (GLBA) and Sarbanes-Oxley Act (SOX).

The GLBA requires industry companies to protect data and explain how it’s used and shared. It also gives individuals the right to opt out of data sharing. The SOX protects customers and investors from fraudulent practices by companies and boosts transparency in financial reporting and recordkeeping.

Some of the monitoring solutions used in the financial services industry include screen monitoring, activity tracking, email monitoring, and call recording.

Employee Monitoring Around the World

While it’s important to know about employee monitoring in the US, if you work in an international business, you’ll also need to know about employee monitoring practices and rules in other countries.

Europe

In Europe, it’s generally legal to monitor employees as long as they know and agree to it. This includes monitoring computers and phones, emails, screens, and keystrokes. However, European workers also have rights to private communication in the workplace, even on company-owned devices.

While there is no single law throughout Europe that dictates how employers monitor employees, most companies follow the General Data Protection Regulation (GDPR). This law governs how personal data is collected and requires proper security measures to protect people’s information.

The GDPR applies to all EU members and companies that offer goods/services to customers in the EU or monitor people in the EU.

United Kingdom

In the UK, it’s legal to monitor employees. However, companies have to abide by the data protection requirements set out in the Data Protection Act. If companies want to monitor employees and collect data, the personal data has to be:

Used fairly, transparently, and lawfully
Used for specific and explicit purposes
Used in a relevant way and limited to only what’s necessary
Accurate and kept up-to-date
Only kept as long as necessary
Handled in a way that protects it from unauthorized access, loss, or destruction

Canada

In Canada, it’s legal to monitor employees in various ways, such as GPS tracking, screen monitoring, and website tracking. However, Canada has a few rules and considerations in place which require companies to:

Only collect data that’s necessary
Obtain meaningful employee consent to collect, use, and disclose personal information
Only use the data for the purpose it was collected for, and only keep it for as long as it’s necessary
Give employees notice about how their information is collected and used
Limit access to information on a need-to-know basis
Have policies and procedures that cover how data gets collected, used, and disclosed

Canada has two laws that govern how companies and organizations collect, use, and share personal information. The Privacy Act applies to federal government institutions, and the Personal Information Protection and Electronics Documents Act (PIPEDA) applies to companies in the private sector.

Australia

It’s legal to monitor employees in Australia, but several guidelines exist. The Privacy Act 1988 governs both the public and private sectors in Australia. While it doesn’t specifically mention monitoring, anyone looking to monitor employees in the country needs to abide by it.

For example, employers must inform workers about the types of monitoring used, the purpose of monitoring, and details of the data handling process. There must also be a valid reason for monitoring, which must be clear and specific. To be compliant, companies also need strong security measures to protect collected data.

While the whole country lacks specific legislation regarding workplace monitoring, a few states and territories have implemented their own measures. For example, the Australian Capital Territory has the Workplace Privacy Act 2011, and New South Wales has the Workplace Surveillance Act 2005.

Both require companies to have a surveillance policy in place and provide two weeks’ notice before monitoring commences. Cameras need to be visible and obvious, and tracking devices must have a visible warning so workers know when they’re being tracked.

India

Employers can legally monitor employees in India. They can monitor keystrokes, screens, computers, and websites and use GPS tracking. Because there’s no overarching law in India surrounding employee monitoring, companies refer to the Information Technology Act 2000, which deals with electronic communications and commerce in India.

Like many other parts of the world, companies that want to monitor workers need a legitimate business reason, and all employees need to be made aware they’re being monitored.

Conclusion

Whether you’re looking to adjust your current employee monitoring policies or want to ensure your company policies are compliant, it’s important to know the rules and regulations in place. Companies can risk severe penalties and fines, so legal teams must make sure their companies are doing things by the book.

While most US laws are aligned, some states have additional restrictions and guidelines. Policies in other countries can vary drastically.

If you want to learn more about employee monitoring, consider checking out our guides on the best call-tracking software for your business and how mouse jigglers are some employees’ responses to being monitored at work.