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The Good, Bad and Ugly of Employee Monitoring: Insights and Perspectives for Service-Based Industries

Employee monitoring is a hot topic, especially in service-based industries. These companies often find themselves walking a fine line between ensuring productivity and respecting employee privacy, and that’s why understanding the ins and outs of employee monitoring is crucial for HR professionals, managers and employees. This blog will explore the history, viewpoints and future of employee monitoring, providing a balanced view to help HR navigate this complex issue.

How Employee Monitoring Started

Employee monitoring began as a way to ensure that workers were doing their jobs during their designated hours. In the early days, this meant supervisors would watch over workers in factories. As technology advanced, monitoring methods evolved. Today, companies can track emails, internet usage, and even the keystrokes on a computer. The primary goal has always been the same: to make sure employees are productive and accountable.

  • Early Days: The time clock, invented by Willard Bundy in 1888, was one of the earliest forms of employee monitoring. It was used to track when workers started and finished their shifts, ensuring they were working the required hours.
  • Technological Evolution: The evolution of technology brought about new methods of monitoring. In the 1980s, desktop computers became prevalent in offices, leading to the development of software that could track computer usage. By the 1990s, email monitoring software emerged, and the 2000s saw the rise of internet usage monitoring. Today, companies use sophisticated software to monitor every aspect of an employee’s digital activity.

Perspectives from Founders, HR and Employees

Founder’s Perspective: Founders of companies often see monitoring as essential for protecting the business. They believe it helps ensure that employees are working efficiently, prevents time theft and safeguards sensitive company information. Founders argue that in a competitive market, every bit of productivity counts.

This Forbes study highlights the types of online activities that employers are monitoring and their reasons behind monitoring them which emphasizes their perspectives.

HR and Employee Perspective: HR professionals and employees usually have a different view. Many HR professionals believe that strict monitoring can create a culture of mistrust. This mistrust can lead to stress and lower job satisfaction among employees. Employees may feel like they are constantly being watched, which can make the work environment uncomfortable and less productive. Employees often feel that monitoring infringes on their privacy and autonomy. They may perceive it as a sign that the company does not trust them, leading to decreased morale and engagement. 

A study by the Sage Journals found that excessive surveillance can lead to higher stress levels and lower job satisfaction among employees. This, in turn, can decrease overall productivity.

The Ideal Way to Monitor Employees

Ideally, the best approach to employee monitoring is to have none at all. However, this is a significant shift and cannot happen overnight. If you choose to maintain some level of monitoring, here are a few key considerations to keep in mind

  • Selective Monitoring: Focus on important aspects like project milestones or data protection. This approach helps in safeguarding critical assets without overwhelming employees.
  • Trust and Autonomy: Give employees the freedom to manage their time and tasks. Autonomy in the workplace can lead to higher job satisfaction and productivity.
  • Being Transparent: Let employees know what is being monitored and why. Transparency builds trust and helps employees understand the necessity of monitoring.
  • Focus on Outcomes: Instead of watching every little action, look at the results of the work. Outcome-based monitoring allows employees to focus on delivering quality work without feeling micromanaged.
  • Communicate Clearly: Make sure employees understand the goals and expectations. Clear communication helps in aligning employees with the company’s objectives and reduces ambiguity.
  • Respect Privacy: Avoid intruding on employees’ personal lives. Monitoring should be limited to work-related activities to maintain a balance between oversight and privacy.

Does Monitoring Hurt Productivity?

Excessive monitoring can actually reduce productivity. Research shows that constant surveillance can lead to stress and lower creativity. Employees who feel pressured are more likely to burn out and leave the company. While no monitoring would be the ideal approach, we understand that achieving this requires a systemic change. In the meantime, focusing on monitoring only essential areas can be a more balanced and effective way forward.

According to this article, while some studies suggest that monitoring can increase productivity, others indicate that it can have the opposite effect. Employee monitoring can lead to increased anxiety and a feeling of mistrust, which negatively impacts productivity. 

While employee monitoring software is designed to reduce rule-breaking, it can have the opposite effect. In fact, one study revealed that “monitored employees were substantially more likely to take unapproved breaks, disregard instructions, damage workplace property, steal office equipment and purposefully work at a slow pace, among other rule-breaking behaviors.” The reason for these actions? The research showed that surveilling workers causes them to subconsciously feel that they are less responsible for their behavior, which makes them more likely to want to break the rules.

How HRs can Address this Issue

Many HR professionals are not in favor of strict monitoring but find it hard to persuade management. Here are some strategies to help:

  • Highlight the Negatives: Use research to show how too much monitoring can harm productivity and morale. Presenting data-driven insights can be persuasive for management that highlights the negative impact of excessive surveillance on productivity and employee well-being.
  • Propose a Balanced Approach: Suggest monitoring key areas while giving employees some freedom. Emphasize the importance of trust and autonomy in the workplace.
    Propose a monitoring system that focuses on critical data security while allowing employees to manage their time and tasks. 
  • Emphasize Trust: Show how trust and engagement can lead to better performance. Trust is a key driver of employee engagement and productivity.
  • Provide Alternatives: Offer other methods like goal-setting and regular check-ins. These alternatives can achieve the same objectives without the negative effects of constant surveillance.

Real-World Examples

When Monitoring Works: Microsoft is developing a system that would use smart watches to collect data on employees’ blood pressure and heart rate, producing personalized “anxiety scores” to inform wellness recommendations.

When Monitoring Doesn’t Work: The Guardian article mentions how, Barclays has been piloting a software system called Sapience, which gives companies “insights into work patterns” and tracks productivity by monitoring employees’ computer use, according to the vendor’s website. But after negative staff feedback and critical media reports,  the bank changed track and announced that the software would track only anonymized data moving forward.

Effective Monitoring Example: Best Buy’s Results-Only Work Environment (ROWE) program, which focused on outcomes rather than hours worked, increased productivity by 41% and reduced turnover by 90%. 

The Future of Employee Monitoring in the Service Industry

The service industry is moving towards focusing on outcomes rather than hours worked. As remote work becomes more common, the emphasis on monitoring exact hours is decreasing. Instead, companies are looking at the quality of work and the achievement of goals. This shift requires a change in monitoring practices, focusing more on results and less on surveillance.

Buffer, a social media management company, has implemented a fully remote work model that emphasizes outcomes and trust. This approach has led to high employee satisfaction and productivity.

Conclusion

Employee monitoring is a complex issue with valid points on both sides. For HR professionals in service-based industries, finding the right balance is key. By advocating for a balanced approach, emphasizing trust and engagement, and presenting clear, research-backed arguments, HR can help create a healthier, more productive work environment.

A balanced approach not only meets modern workforce expectations but also ensures that monitoring is effective without harming employee morale and productivity. As the service industry evolves, so too must our monitoring practices, ensuring they respect employee autonomy while maintaining high standards of productivity and accountability.

Khyati Ojha

Hi there, Welcome to my corner! I'm a Researcher and People Scientist at Springworks. I've found my calling in uncovering the secrets to workplace happiness. From my earliest days, I've been drawn to the world of HR and People-related topics, eager to shine a light on what makes us truly thrive at work. Through my research and writeups, I aim to sprinkle some extra brightness, joy and purpose into workplaces everywhere.

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