The Best Employee Monitoring Software of 2021

Employee monitoring software is a digital solution that provides a way for businesses to monitor, record and manage employees' online behavior while they are on company time. Whether you have a few employees or several hundred, the software is useful to have, because there are a lot of distractions in the modern workplace for both on-site and remote employees, especially for those who use internet-connected devices to complete their daily tasks.

And, while employees can be trusted to do the right thing most of the time, there is always an opportunity for them to engage in unproductive behavior on company time. Worse yet, employees could be insider threats – exhibiting reckless or malicious behavior that jeopardizes your business.

With employee monitoring software, you can track employee activity and productivity. The most basic features include web browsing, which allows you to monitor websites visited by employees; application monitoring, which shows you specific applications employees use; and activity tracking, which monitors keyboard and mouse activity so you can detect whether employees are actually working during their work hours. 

Many solutions include keystroke logging, which tracks what users type across web browsers and applications – including chat messages and emails – along with a date and time stamp, and it can be an incredibly useful window into user activity. Some applications even look through the devices' cameras.

Employee monitoring software includes a wide range of features to keep tabs on how employees spend their time at work. The best monitoring software lets administrators set specific rules and policies for different members of the organization and receive notifications when the rules have been broken. 

Whether you run a big company with hundreds of employees or a small business with a handful of workers, there is software that fits your needs and budget.

Tip: Before looking for an employee monitoring software, determine what type of employee activity you want to track, and why. Some businesses may need extensive monitoring solutions, whereas others can save money with more basic software.

There are different types of monitoring that businesses can use to optimize their operations. Here are three of the most common methods. 

1. Software monitoring. This is another term for employee monitoring software. This is software you install on user computers to track activities. Depending on the application you choose, it can track the websites the employee visits, the programs they use and every keystroke they make on their computer. Most take random screenshots of user screens and allow you to see user screens in real time. Some even use the camera to take photos of the computer user to verify the employee is at their desk.
   
   
2. Email monitoring. This allows you to view the emails your employees send and receive using their company email accounts. This is often available as a feature of employee monitoring software but can also be purchased as a stand-alone application (sometimes called email server monitoring).
   
   
3. Network monitoring. Instead of monitoring your employees, this is an IT process that checks your network to make sure all components (routers, servers, firewalls, etc.) are functioning properly, with the goal of eliminating network downtime.

The best small business employee monitoring software helps you manage and enforce your acceptable use policy without requiring a lot of your time to install and maintain it. You need a solution that alerts you when employees attempt to leak vital business information, access inappropriate content or simply waste time goofing off while they are on the clock. 

Here are the main aspects to pay attention to in your search. 

Content Filtering and Blocking Features

Consider the different types of monitoring features the software offers. For example, how much do you want to control your employees' internet time? It is all right for them to surf the internet during breaks and lunches, or not at all? Are there websites your employees need to access to do their jobs?

With some software applications, you can select times when the internet or sites are blocked and times they're not blocked. Most applications also let you create user groups, each with their own rules and permissions. Blocking disruptive sites and creating customized permissions for specific groups is one way that business internet software can help increase employee efficiency and productivity. 

Time Tracking and Activity Monitoring

Many businesses use employee monitoring software to track employee working hours. The software can include login/logout features so employees can record the time they spend working. A popular employee monitoring feature is activity tracking. This feature tracks how active or idle an employee's keyboard and mouse are during their work hours.

Idle time isn't always a negative thing, though. For example, if an employee spends a lot of time reading or in meetings, they might have "low activity" in terms of keyboard and mouse activity. The best software records whether the employee's activity (or inactivity) is productive or unproductive. This gives you insight into where your employees are excelling and where they are distracted. This is a great feature for tracking and improving employee productivity.

Application, Website and Email Monitoring

Consider the specific areas of computer activity you want to track. The most comprehensive programs keep detailed logs of the websites your employees visit and the applications they use, along with emails, online chats, created and downloaded files, print jobs, inserted devices, and even their physical locations when they're on company devices.

You may not want to keep such detailed tabs on your employees. If you choose software with a full suite of features, many are customizable, so you can decide what exactly you want to record (and in how much detail), as well as what the exceptions are. 

Screenshots and Keystroke Recording

Depending on your reason for using employee monitoring software, you may want software that records employees' online searches and takes screenshots of their monitors. These can come in handy if you are sued by a disgruntled employee and need to back up your claims.

You may also want to consider keystroke logging; although, keep in mind, this feature can be considered invasive and is not offered by all software providers.

Reports and Notifications

Pay attention to the software's reports and notifications features. It should provide regular reports (at intervals you choose) with easy-to-read statistics and visual breakdowns of employee habits. For more detailed information, though, you'll need extensive notification options, and the best software has both real-time monitoring and real-time alerts. For instance, you may choose to be alerted if an employee downloads a document online or tries to access a forbidden website. Since notifications alert you to specific occurrences, and reports give you a staffwide overview, you'll get the most out of your software when you use both options together.

Archive Storage

Make sure your office web monitoring software includes automatic archiving. You never know when you may need to review an employee's internet history. 

Mobile Apps

In addition to dashboards you can access from any browser, the best employee monitoring software comes with mobile apps that managers can use when they're away from the office. Although some have both Android and iPhone apps, some are platform-specific, so if this is a feature that's important to you, verify that the app is compatible with the operating system you use. 

Ease of Use and Support

Good internet filter software should be intuitive to use, with visually appealing interfaces that clearly and neatly display all the options without being cluttered and overwhelming. Administrative users should feel confident using the software; one should have a good grasp of the application's monitoring options after a few minutes of clicking around. 

If you run into issues, though, you want to work with a company that is easy to reach. You should be able to reach tech support by phone, email, live chat, or online ticketing, though even some of the best companies only offer one or two of these support avenues. Live chat is typically the fastest way to connect with a representative. Most companies also have extensive self-help resources on their websites that you can always refer to, such as how-to guides, video tutorials and FAQs pages. 

Some companies charge extra for ongoing upgrades and support after the first year. You can forgo this option, but you run the risk of operating outdated and possibly insecure software without help from the manufacturer.

While monitoring employees' computer and internet usage seems like an infringement of employee privacy, the U.S. Supreme Court ruled in 2010 that it is legal for companies to monitor employees' actions while they are on the clock or using company equipment, including laptops, pagers, USB drives and mobile devices. However, there have never been any regulations on the type of programs companies can use to monitor employees. This means you can use programs that monitor keystrokes and capture passwords; however, there is some ethical controversy surrounding whether these features should be used. 

While the federal government doesn't place restrictions on employee internet monitoring, some individual states have protections in place. An increasing number of states require employers to notify their workers if they monitor online activity, including emails and keystrokes. You can disclose this within your use policy, the employee handbook, as part of the new worker orientation or simply send out an email reminder to employees. 

FYI: Employees tend to have a higher expectation of privacy on their personal devices, making them riskier to monitor. If you want to monitor employees' personal devices, take extra precautions by creating an explicit bring-your-own-device policy for them to sign.

Also, employee monitoring software (and how employers use it) could be impacted by the passage of new data privacy laws in the U.S. The California Consumer Privacy Act (CCPA), for example, includes provisions that give individual employees the right to request certain businesses disclose the personal information that has been collected about them. Businesses could also be required to notify individual employees when personal information has been collected and how that information is being used.

These provisions could extend to employee monitoring and require a revisiting of company policy. 

If your business is subject to the CCPA or similar data privacy regulation, consider whether the employee data you are collecting serves a clear business purpose. Consider as well how long you need to store that data in addition to ensuring it is properly protected from data breaches. Failure to prepare in accordance with data privacy laws could result in fines and lawsuits.

WHAT ARE THE BENEFITS OF EMPLOYEE MONITORING SOFTWARE?

Employee monitoring software can benefit your company in multiple ways, primarily regarding productivity and security.

Employee Productivity

Monitoring your employees' device usage can be a good way to motivate them to use their time wisely. With features that allow you to track employee activity (e.g., mouse activity and keystroke logging, webcam recording), you can ensure your team is actively working at their computers when they say they are. Tracking and archiving employee activity can also be helpful if you need proof of a disgruntled former employee's poor behavior.

Company Security

Employee monitoring software can also help protect your business and your network. Features like website tracking, content filtering and screen captures can help ensure your team is working on the proper websites and applications, instead of viewing malicious websites or performing harmful activities. Features like email, USB and print monitoring are great for making sure confidential data isn't leaked. You can also use network monitoring to track the functionality of all your network components and reduce network downtime.

WHAT ARE THE DISADVANTAGES OF EMPLOYEE MONITORING SOFTWARE?

Although there are many benefits to using employee monitoring software, there are a few potential disadvantages.

Employee Morale and Trust

Employers must walk a fine line when implementing the software for the first time. Employees may view it as a lack of trust in them, which can eventually breed resentment and lower company morale. No one likes feeling like they are being watched, and employee monitoring software could be seen as a loss of privacy. To reduce employee turnover or resentment, explain your reasons for using the software and emphasize how it will benefit the company.

Data Comprehension

Another potential drawback is the amount of time it can take to condense and comprehend the data that is compiled from the software. This software offers a plethora of information that can help businesses improve security and streamline their processes, but it may take a little extra work to decipher the most important data points.

Access to Sensitive Information

If you are implementing employee monitoring software for the first time, you should also be aware of the potential privacy and security risks. It may seem counterintuitive, since this software is meant to protect your network, but it is likely that you'll eventually stumble across private employee data, like health records or bank account information. To reduce this risk, make it clear to employees what they should and should not access on company devices.

WHAT IS SILENT MODE?

You can run employee monitoring software in either stealth mode or transparent mode. Stealth mode, also known as silent mode, means employees aren't aware they are being monitored. Transparent monitoring is when your employees can see the surveillance program on their computers. 

IS CLOUD OR ON-PREMISES EMPLOYEE MONITORING SOFTWARE BETTER?

The best type of deployment depends on your business, and most of the top software applications offer both options. With an on-premises solution, you'll host the software and the data it collects on your server – which means that you can keep your data as long as you want. But an on-premises solution requires more IT knowledge and can take longer to set up. 

With cloud-based software, it's easier to manage and quicker to set up than on-premises deployment, and you don't have to have a server to store all your data. But you must trust the vendor to maintain and protect your data. 

IS EMPLOYEE MONITORING SOFTWARE SECURE?

For the most part, yes. Employee tracking software is designed to be installed on multiple computers, including an administrative station. For this type of program to work, you must first turn off your firewall. The firewall is turned back on once the installation is complete. This punctures a hole in your security system for a short period of time, making your network vulnerable to viruses, Trojans, spyware and other threats.

A word of caution: Some employee surveillance programs look legitimate but are really viruses in disguise. While it may give you keylogging and password-capturing capabilities, it collects this information behind the scenes to sell or use to breach your company's security measures. We did extensive research to ensure the legitimacy of each of the programs we reviewed. However, since most of these programs work around your firewall, it is still possible for other threats to pass through undetected. 

CAN I USE AN EMPLOYEE MONITORING SYSTEM FOR MY REMOTE TEAM?

Yes, if your business owns the computers that your employees use, you can install computer monitoring software on them. You can even run monitoring on silent mode. But if your remote worker is using their personal computer for work, they're not likely to consent to having tracking software installed on it. One solution might be to use a transparent monitoring app like Hubstaff that only tracks usage when the employee is clocked in to work.

WILL MY EMPLOYEES KNOW THEY ARE BEING MONITORED?

This depends on the software you use and the mode you deploy. For example, you can use employee monitoring software in stealth mode, which does not let your employees know they are being monitored. Conversely, you can use employee monitoring software in transparent mode, which allows employees to see the surveillance software on their device. It is up to you whether you inform your employees whether they are being surveilled or not. There are no current federal laws that require you to notify staff they are being monitored, although some states have their own limitations and requirements.

HOW DO I GET MY TEAM ON BOARD WITH EMPLOYEE MONITORING SOFTWARE?

If an employee is using a company device to perform their work responsibilities, there is practically no expectation of privacy on said device. It is within your legal rights to install monitoring software to track their performance and productivity. However, just because it is legal doesn't always mean they will be supportive of it.

Start with open communication. For example, workers are more likely to be receptive if they understand the reasoning behind it. Instead of secretly installing tracking software or letting your employees think you don't trust them, have a transparent discussion with your team to explain how the software can benefit your company. Focus on areas such as increased business security, employee development and overall productivity.

We asked small business owners and leaders to share what employee monitoring software they use and what features they rely on. 

Most of our respondents said they wanted to make sure their team members were staying productive while on the clock. They also mentioned affordability, ease of use, and several expressed discomfort at monitoring their employees. For these reasons, it wasn't a surprise that the majority of our respondents use Hubstaff, which focuses on monitoring employee productivity and is a transparent application that users interact with, so employees know they are being tracked when they're on the clock. 

"I felt I needed more transparency as far as what my team members were doing with their time," said Ian Kelly, vice president of operations for NuLeaf Naturals. "I've been using Hubstaff to monitor the clock and screenshots from employees working from home. This reassures me that we're getting billed for the right hours, and I think it helps the team focus on their work when they're working, knowing that they're being held accountable." 

Jeremy Lessaris, founder and CEO of The Designed Company, also cites productivity as his reason for using employee monitoring software, and to do this, he uses ActivTrak. He said, "After having tossed out 10 different tools over the years, we landed on tracking internal productivity down to the mouse movement with ActivTrak. It's important to note that we don't really focus on it unless we have a production problem, but it's a robust tool that lets us see what's really going on during the day." 

Many small business leaders said that reporting and notification features were important to them. 

Bradley Steven, founder and CEO of LLC Formations told us that his leadership team meets monthly to discuss employee performance, and they review the reports generated by their employee monitoring software, Teramind. 

"We consult these reports for giving bonuses to the employees, promoting them, or even terminating them because of their performance," he said. "Detailed report generation is a must-have feature for the monitoring software. After all, monitoring is of no use if we do not get valuable insights from the data."

Our first step in reviewing employee monitoring software was to examine an extensive list of vendors, how they stacked up in terms of user reviews, and whether they had any glaring complaints or issues filed with the Better Business Bureau. We also examined their websites to get a sense of what their solutions entailed. From there, we selected a pool of finalists from which we would determine our best picks. 

We then studied each program's list of features more closely, ensuring that it offered all the most important features as well as more advanced features that would give administrators more insight or control over employee activity. We downloaded free trials, when available, and watched video demos and tutorials so we could determine usability. We also compared pricing from the lens of a small business on a budget. 

These are the primary features we considered in our review: 

• Ease of use
• Time tracking
• Website and application monitoring
• Activity tracking
• Email monitoring
• Social media monitoring
• Keystroke logging
• Screenshots
• Video feeds
• Content filtering and website blocking
• Remote access capabilities
• Reporting
• Security
• Tech support 

We also looked for any additional features that might be useful or effective.