This article was published in 2014 and updated in October 2026.
Almost every job today involves a computer, and with remote and hybrid work, many employers wonder how to keep track of productivity and protect company data. Workplace internet monitoring software promises to help. Our original 2014 article promoted one such product; this updated version looks more broadly at what monitoring software can do, where its benefits lie — and the legal and ethical limits every employer should know.
What workplace monitoring software does
Depending on the product and configuration, monitoring tools can:
- log which websites and applications are used and for how long,
- filter or block risky or inappropriate websites,
- detect malware, suspicious downloads and attempts to copy sensitive data (data-loss prevention),
- report on network usage per computer,
- in more invasive forms, take screenshots, record keystrokes or track activity and idle time.
Potential benefits
- Security: the strongest argument for monitoring. Detecting malware, phishing, unusual logins and data leaks protects the company and its customers.
- Compliance: regulated industries such as finance and healthcare may be required to record certain communications or protect specific data.
- Resource planning: knowing which software and services are actually used helps cut unnecessary licences and fix bottlenecks.
- Fair, transparent rules: clear policies about acceptable internet use, combined with proportionate monitoring, can prevent misuse of company systems.
The downsides
Monitoring isn’t a shortcut to productivity. Intrusive tracking — keystroke logging, constant screenshots or measuring mouse movements — can damage trust and morale, increase stress and even push good employees to leave. Activity metrics also measure the wrong thing: being busy on the computer isn’t the same as doing good work. Many managers find that clear goals, regular check-ins and judging people by their results work better than surveillance.
Know the law before you monitor
The rules differ between countries:
- United States: employers generally have wide latitude to monitor company systems, but several states, including New York, Connecticut and Delaware, require employers to notify employees about electronic monitoring.
- European Union and UK: under data protection law, monitoring must have a legitimate purpose, be proportionate and be transparent. Employees must be informed in advance, secret blanket surveillance is generally unlawful, and a data protection impact assessment is often required. In some countries, such as Germany, works councils must also agree.
When in doubt, get legal advice before introducing monitoring software.
Best practices for small and medium businesses
- Define the purpose: security and compliance are much easier to justify than general “productivity” tracking.
- Write a clear policy that explains what is monitored, why, who can see the data and how long it is kept — and share it with all employees.
- Choose the least intrusive tool that achieves your goal; often your existing security software, web filter or Microsoft 365/Google Workspace admin tools are enough.
- Limit access to the collected data to a few trusted people, and delete it when it’s no longer needed.
- Respect private life: avoid monitoring personal devices, and never use webcams or microphones without explicit consent.
Used carefully and openly, monitoring software can make a business more secure. Used as a substitute for trust and good management, it usually does more harm than good. Employees can read our guide to internet privacy at work to understand their side.
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May 30. 2014
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vijay
Jun 02. 2014
Most of the IT companies monitor the usage of internet. My company only allows 1 hour usage to social networking sites. This type of monitoring is required to increase the productivity.
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Yes, monitoring increases productivity and it can be easily done by monitoring softwares.
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