Best Practices for Implementing Time Tracking Without Infringing on Employee Privacy

Consider the statistics on the adverse effects of workplace monitoring and the importance of communication, non-invasive time-tracking software, a system that puts the employee in control and is easy to use, and the impact of the American Privacy Rights Act to be passed in 2024.

In 2024, 43% of employees say their employers monitor their online activity. 68% report that there is at least one thing they don’t want their employer to monitor.

The highest rate of workplace monitoring is with hybrid work arrangements. 48% of hybrid workers say they are monitored. Fully remote workers come in second with 37%.

39% share that monitoring has impacted their relationship with their employer negatively. 43% say it is detrimental to organization morale.

A third of the employees surveyed said their employer had used information from online monitoring in their performance reviews.

Finally, 18% report anxiety and stress from being monitored, and 16% say they took fewer breaks as a result of monitoring.

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Communication is key

Evidently, forms of monitoring employees such as time tracking can have negative consequences. At the same time, you can’t do away with them. Employees need to support time tracking for it to work, and effective communication is the only way to achieve this.

According to 86% of employees in 2024, ineffective internal communication is the main reason for company failure. A company-wide meeting can help explain to employees how and why time will be tracked, emphasizing its benefits.

Use non-invasive time-tracking apps

Time tracking requires supervisors to access their subordinates’ work devices, so they should define and respect the limits of this access. All-day webcam tracking and unnecessary screenshots should be avoided.

The system of time tracking for employees should put them in control of their time. This might even make them more productive. In a recent survey, 40% of respondents said online monitoring positively impacted their productivity.

Non-invasive systems help track employee hours accurately, making sure people are paid fairly. This promotes trust and transparency between the employee and the employer.

Consider employee privacy legislation

Due to bipartisan support in Congress, the American Privacy Rights Act is expected to pass in 2024. This law will establish a federal standard for handling personal data. It means more rules governing the use of AI in making employment decisions.

If the employee “opts out” of using AI, the employer may not use it to make “consequential” decisions about the work relationship.

At the moment, companies that collect, retain, process, or transfer the data of 200,000 or fewer individuals, make less than $40 million in gross revenue a year, and don’t make money from selling data to third parties are exempt from privacy legislation.

The new law would require companies to audit AI algorithms they use to make hiring, promotion, termination, and performance evaluation decisions. They must make sure these algorithms are fair.

What’s more, they will have to give job candidates and existing employees notice when they use AI in HR matters. The individuals affected will be allowed to opt out of AI.

Currently, the states of Connecticut, Delaware, Florida, California, Colorado, Indiana, Iowa, Montana, Tennessee, Texas, Utah, New Jersey, New Hampshire, Oregon, and Virginia have comprehensive data privacy laws.

Only California’s law applies to employee data, but employers must consider whether their HR departments will need to contribute to compliance with data privacy laws.

Find an intuitive time-tracking system

The system should make tracking time as simple as possible. Intuitive software reduces the need for troubleshooting and support, saving resources. It often includes integrations and customizable features, making it adaptable to different businesses’ unique needs.

Bring-Your-Own-Device programs are becoming more popular, and each member of your team might have a different device. On-the-go employees might choose their phones as their main device, while employees at desks could opt for a laptop or desktop computer.

If possible, let employees choose how to track their activity. Select a system that enables tracking through app- or web-based platforms.

Recap