Remote work has become a permanent part of business life. By 2025, over 30 million Americans, roughly one in five workers, are outside traditional offices. For business owners, this creates a pressing challenge: how do you keep teams productive and accountable when you can’t see them in person

The answer lies in combining technology with transparency. Tools like GPS-enabled time clocks, IP address checks, and geofencing software can verify location and hours. 

Paired with regular check-ins, clear policies, and respect for privacy, these methods keep monitoring legal and ethical.

But tracking employees also brings tough decisions. What’s allowed under the law? How much oversight is too much? And how do you hold people accountable without eroding the trust you’ve built?

This guide walks you through proven methods, software options, and best practices for tracking remote employees in 2025.

What Is Remote Employee Monitoring?

Remote employee monitoring is the practice of tracking where and how employees work when they’re outside a physical office. It isn’t about spying. Instead, it’s a mix of tools and practices designed to confirm attendance, verify location, and make sure paid hours reflect actual work.

For example, a dental office with remote billing staff might use a time clock app that records GPS location at clock-in while a construction company could rely on geofencing to confirm crews arrive at job sites. 

Monitoring can take several forms, depending on company goals:

• Time tracking software: Employees clock in and out through apps on their phones or computers. 
• Location verification: GPS-enabled check-ins confirm where staff start or end their shifts. Construction firms often require field workers to clock in at job sites using mobile devices.
• Activity tracking: Some tools capture screenshots or track application use to show whether employees remain active during work hours. Support teams may use this to verify agents are available when scheduled.
• Communication logs: Daily check-ins through video calls, chat platforms, or shared boards provide visibility into progress and help prevent bottlenecks.

When implemented thoughtfully, remote monitoring provides reliable payroll data, ensures compliance, and keeps projects on schedule, while still showing employees that their privacy and time are respected.

Why Employers Track Remote Workers

Managing a remote team comes with unique challenges. Without face-to-face interactions, it’s harder to see who’s working, how projects are progressing, and whether deadlines will be met. That’s why many employers rely on tracking tools, not to micromanage, but to bring clarity and accountability into daily operations.

Here are the key reasons businesses choose to track remote workers:

• Ensure accountability: Tracking tools make it easier to verify that employees are completing tasks on time and meeting expectations. This helps managers focus on results instead of wondering if work is getting done.
• Manage workloads fairly: Monitoring activity provides insight into how much work each team member is handling. If one employee is overloaded while another has extra capacity, managers can redistribute tasks to prevent burnout and keep projects balanced.
• Support performance reviews: Data from time and activity tracking creates a record of work habits and accomplishments. Instead of relying only on impressions, managers can use objective evidence to give constructive feedback or recognize top performers.
• Enhance project management: With time tracking in place, managers can see whether projects are hitting milestones, staying on schedule, or falling behind. This visibility makes it easier to adjust resources and keep business goals on track.
• Boost cybersecurity: Remote monitoring tools can help protect company data by tracking document access, installed apps, and browsing activity on company devices. This layer of oversight reduces risks from cyberattacks or insider threats.
• Ensure legality and compliance: Accurate records of work hours, completed tasks, and communications are often required for labor law compliance. They also protect businesses if disputes arise over pay, hours, or project deliverables.

At its core, tracking remote employees isn’t about control; it’s about clear expectations, visible work, and shared accountability.

How Remote Employee Monitoring Works

Regardless of industry or company size, the core idea behind remote employee monitoring is simple: collect reliable information about work activity and location, then use it to improve accountability and decision-making. The way that information is gathered depends on the tools a business chooses and the level of oversight it needs.

Most systems work in three stages:

1. Collect data: GPS from mobile devices, clock-in times, or software activity logs. For example, when an employee clocks in through OnTheClock, the system records the time and location instantly.
2. Data verification: Monitoring tools compare information against employer rules. A geofencing app might confirm an employee clocked in within a designated job site. An attendance platform could flag shifts that were started outside of scheduled hours.
3. Reporting and insights: Finally, the system turns raw data into usable reports. Managers may see weekly timesheets, productivity summaries, or alerts when work patterns suggest issues. These reports not only help with payroll but also highlight staffing needs and potential compliance risks.

Understanding how monitoring works is only part of the picture. You also need to distinguish between tracking productivity and attendance, since each approach serves a different goal.

What is the difference between tracking productivity and attendance 

When you’re managing remote employees, it helps to separate tracking productivity from tracking attendance. The two often get lumped together, but they answer very different questions.

• Attendance tracking tells you when and where employees are working. Did they clock in on time? Are they logged in from the right location? Attendance data helps you run payroll accurately, prevent time theft, and meet labor law requirements. For example, a construction company may use geofencing to confirm crews clock in at the correct job site each morning.
• Productivity tracking looks at how work hours are being used. Are employees completing tasks? Which projects are taking the most time? Productivity data helps managers identify roadblocks, balance workloads, and measure output. A marketing agency, for instance, might track time spent on client campaigns to see which accounts require extra resources.

Both support a healthier business but serve different purposes.

Is Tracking Remote Employees Always Necessary?

Once you understand how monitoring works, the next question is whether it’s truly necessary for your business. Before rolling out any system, weigh the benefits against the potential drawbacks. Tracking can bring real benefits, but it also comes with potential drawbacks. Weighing both sides will help you decide how much oversight is appropriate for your team.

Benefits of tracking Remote Employees

• Accountability and fairness: Tracking ensures employees are logging accurate hours, which protects both the company and the worker. Everyone gets paid for the time they actually work.
• Project visibility: Managers gain a clearer view of progress, making it easier to spot delays or bottlenecks before they grow into bigger problems.
• Compliance support: Accurate records of hours and tasks can protect your business during audits or labor disputes.
• Improved productivity: With the right data, managers can reassign tasks, balance workloads, and provide help where it’s needed most.

Risks of tracking Remote Employees

• Loss of trust: If tracking feels intrusive, employees may see it as micromanagement, which can damage morale and increase turnover.
• Privacy concerns: Overly aggressive monitoring, like keystroke logging or constant screenshots, can create legal and ethical challenges, especially if employees aren’t clearly informed.
• Resource drain: Implementing and managing complex monitoring systems takes time and money. For small businesses, overly advanced tools may create more hassle than value.
• Activity ? outcomes: Screen time or keystrokes don’t always reflect results, and over-focusing on them can distract from quality.

The bottom line: tracking remote employees can be a valuable tool, but it should be applied thoughtfully.

Is it legal to track remote employees?

The short answer is yes, in the United States, employers are generally allowed to track remote employees. But legality doesn’t give you a blank check. There are rules and responsibilities you need to follow if you want to stay compliant and maintain trust with your team.

Privacy laws every employer must know

Several laws shape what employers can and cannot do when monitoring remote workers. While the rules vary by state, there are a few key areas you should understand before rolling out any tracking system:

• Electronic Communications Privacy Act (ECPA): At the federal level, the ECPA allows employers to monitor employee communications on company-owned devices and networks. For example, you can review emails sent through a company account or track activity on a work laptop. However, the law does not give employers permission to monitor private communications, such as personal emails or messages sent outside of work systems.
• State-specific regulations: Some states go further than federal law. Delaware, Connecticut, and New York, for instance, require employers to give written notice before monitoring begins. Other states may not require notice but could impose stricter rules around how long data can be stored or who can access it.
• Data protection laws: Privacy-focused regulations like the California Consumer Privacy Act (CCPA) and its equivalents in states such as Colorado and Virginia emphasize transparency. These laws often require employers to tell workers exactly what data is being collected, how it will be stored, and whether it will be shared with third parties. Failing to provide that transparency could expose your business to fines or lawsuits.
• General duty of fairness: Even when laws don’t spell it out, courts often expect employers to be reasonable in how they monitor staff. For example, it may be legal to use keystroke logging software, but if it captures personal banking passwords or off-hours activity, you could run into legal and reputational trouble. A best practice is to monitor only during work hours and limit data collection to what’s necessary for payroll, compliance, or security.

For small business owners, the key takeaway is simple:

1. Notify in writing before monitoring begins.
2. Limit tracking to work-related activities during work hours.
3. Document policies in your handbook or contracts.

Following these guidelines keeps you compliant and signals to your team that monitoring is about equity, not control

What Employers Are Allowed to Track

Employers are allowed to track a variety of work-related data. The key is to focus only on information connected to business operations and to avoid crossing into personal or off-hours monitoring.

Attendance and work hours

The most common type of monitoring is attendance tracking. Employers can record when employees start and end their shifts, take breaks, and log total hours worked. For example, time clock apps like OnTheClock provide digital timesheets that make payroll accurate and prevent disputes about hours.

Location verification during work hours

Employers can also verify employee location during shifts, especially for jobs that require presence at specific sites. GPS-enabled devices, geofencing apps, and IP address checks are common methods. A construction crew might clock in on-site through a mobile app, while a remote call center may require staff to log in from a registered home address.

Company device activity

If employees use company-owned devices such as laptops, phones, or tablets, employers are legally allowed to monitor activity on those devices. This may include browsing history, app usage, and file access. For example, IT teams often track downloads to prevent malware or monitor email usage to ensure compliance with data protection policies.

Methods for Tracking Remote Employees

Not every business needs the same level of oversight. Some teams thrive with goal-based systems, while others require more structured time tracking to stay compliant and organized. The right method depends on your company’s culture, industry, and the type of work being done.

Performance-Based Tracking

• Key Performance Indicators (KPIs) and Objectives and Key Results (OKRs): Instead of monitoring every action, managers set measurable goals and deliverables. Employees are judged on results rather than activity, which promotes autonomy and accountability. For example, a sales team might be evaluated on the number of closed deals each quarter rather than hours online.
• Project and task management software: Platforms like Asana, Trello, and Monday.com give managers visibility into project timelines and task completion rates. These tools let employees update their progress in real time, creating transparency without constant oversight.
• Self-reporting: Employees share regular updates on tasks, progress, and challenges, usually through daily or weekly reports. While this approach relies on employee honesty, it fosters responsibility and encourages open communication.

Time and Activity-Based Tracking

• Time tracking software: Tools such as Toggl, Hubstaff, and Time Doctor record how long employees spend on tasks or projects. This information can be used for payroll, billing clients, or analyzing workloads. Some apps allow employees to log hours manually, while others use automated timers.
• Activity logs and timesheets: Requiring timesheets or activity logs provides insight into how employees allocate their time. Reviewing these records can highlight inefficiencies and confirm contracted hours are being met.
• Application and website usage: Monitoring software may track which apps or websites employees use during work hours. This helps identify productivity drains or potential security risks. The best practice is to be transparent about what’s being tracked to maintain trust.
• Keystroke and screenshot monitoring: Logs keystrokes or captures periodic screenshots. Use only where necessary (e.g., sensitive roles) and with explicit communication and consent, since it can harm morale.

Communication and Attendance Tracking

• Regular check-ins: Scheduled one-on-one meetings or team huddles give managers the chance to review workloads, provide feedback, and resolve roadblocks. These conversations also help employees feel supported.
• Monitoring communication channels: Reviewing activity on platforms like Slack or Microsoft Teams can reveal collaboration patterns. While it’s acceptable to monitor message volume and response times, managers should avoid reading private messages.
• Attendance tracking apps: Digital time clocks and GPS-enabled apps allow employees to clock in and out, confirming they’re working during scheduled hours. This is especially useful for roles that require on-site presence.
• Shared calendars: Tools like Google Calendar or Outlook give managers a quick view of who is working, who’s on leave, and overall team availability. This provides visibility without heavy oversight.

Step-by-Step Guide to Ethical Tracking

Monitoring remote employees can be done in a way that’s both effective and respectful. The key is to treat tracking as a tool for clarity and fairness, not control. With the right process in place, you can ensure accountability, protect your business, and maintain employee trust. Here’s a step-by-step guide to help you set it up the right way:

Step 1: Define the Purpose of Tracking

Start by asking yourself what you want to achieve. Are you trying to confirm attendance, protect sensitive data, or improve project management? A clear purpose will guide your decisions and prevent you from collecting unnecessary information.

Step 2: Review Federal and Local Laws

Before rolling out any system, check the laws that apply to your business. The Electronic Communications Privacy Act (ECPA), state-specific notice requirements, and data protection laws may all come into play.

Step 3: Document Policies and Agreements

Write down your tracking policies and share them with employees. Include what data will be collected, how it will be used, and who will have access. Adding these details to your employee handbook or contracts builds transparency and avoids confusion.

Step 4: Select the Right Tools for Your Team Size and Needs

Choose software that matches your goals and scale. A five-person team may only need a time clock app, while a larger organization might benefit from integrated project management and attendance tracking. Look for tools that balance functionality with ease of use.

Step 5: Communicate Openly with Employees

Let your team know why tracking is being introduced and how it benefits them. For example, accurate time tracking ensures fair pay and prevents disputes. Open conversations can reduce resistance and build trust.

Step 6: Analyze and Interpret Productivity Data

Don’t just collect information, use it to make smarter decisions. Look for trends that highlight workload imbalances, bottlenecks, or inefficiencies. Share insights with employees to show how data is being used constructively, not punitively.

Step 7: Review and Adjust Practices Regularly

Tracking should evolve with your business. Review your system quarterly or annually to make sure it still aligns with your goals, complies with laws, and maintains employee trust. Adjust when necessary to keep the process fair and effective.

Key Features to Consider in Remote Employee Monitoring Software

Not all monitoring tools are created equal. The best software balances accountability with ease of use, giving managers the information they need without overwhelming employees. When evaluating your options, here are the features to prioritize:

Time Tracking

Time tracking is the foundation of any monitoring system. It records when employees clock in, clock out, and how many hours they work. This ensures payroll accuracy, helps prevent time theft, and gives you a clear picture of attendance patterns. For example, a digital time clock can automatically log hours so you’re not chasing down paper timesheets.

Activity/App/URL Monitoring

Some tools provide insight into which applications and websites employees use during work hours. This can help identify productivity drains or security risks, such as frequent visits to unauthorized sites. Transparency is key here, always let employees know what’s being tracked and why.

Productivity Analysis

Beyond raw time data, productivity analysis tools evaluate how employees spend their hours. You might see which tasks take the most time or which projects are falling behind. This helps managers rebalance workloads and identify areas where extra support or training may be needed.

Screenshot/Screen Recording

More advanced platforms can capture screenshots or even record screens at intervals. While these features give a detailed view of activity, they can also feel intrusive if used improperly. If you consider this option, make sure employees understand when and why screenshots are taken, and limit usage to roles where it’s absolutely necessary.

Project & Task Management

Many monitoring tools now integrate with project management systems like Trello, Asana, or Monday.com. This lets you connect time data with actual deliverables, giving managers a real-time view of progress toward deadlines. It also helps employees organize tasks and stay focused on priorities.

Reporting & Analytics

Data is only useful if you can act on it. Reporting and analytics features turn logs into insights, showing trends in attendance, productivity, and project progress. A weekly or monthly report can highlight inefficiencies, track performance, and guide smarter staffing decisions.

Best Practices for Remote Employee Tracking

Even the best tools can backfire if they’re used poorly. To make tracking work for both your business and your employees, it’s important to set clear boundaries and lead with transparency. Here are the best practices to keep in mind:

Notify employees before tracking begins

Always be upfront about monitoring. Tell employees what you’re tracking, why it matters, and how the data will be used. Written notice, through contracts, policies, or onboarding documents, sets expectations and reduces misunderstandings.

Limit tracking to work hours

Tracking should stop when the workday ends. Monitoring outside of scheduled hours can feel intrusive and may raise legal issues. Focusing on work hours only shows employees you respect their personal time.

Use company-owned devices

Whenever possible, keep monitoring limited to company-owned devices. This makes it easier to separate personal and professional activity, reduces privacy concerns, and ensures that business data is secure.

Review and update policies quarterly

Laws, tools, and team needs can change quickly. Make it a habit to review your monitoring policies every few months. Update language where necessary, and invite employee feedback so the system feels fair and current.

Balance accountability with trust

Monitoring is meant to support, not control. Use the data to confirm hours, prevent errors, and improve workflows, not to micromanage. Balancing accountability with confidence builds a healthier remote culture, and stronger results.

The Employee Perspective on Tracking

When you introduce tracking, it’s easy to think only about business benefits, payroll accuracy, compliance, or project visibility. But for employees, monitoring can feel very different. Understanding their perspective helps you roll out systems that build trust instead of resistance.

From the employee’s point of view, tracking has both positives and challenges:

• Fair pay and protection: Many workers appreciate that time clocks and GPS logs protect them from payroll mistakes. If the system records their hours automatically, they don’t have to worry about missing overtime or proving they worked a full shift.
• Recognition of effort: Transparent data can highlight accomplishments that might otherwise go unnoticed. For example, detailed logs may show how often an employee stays late to finish tasks, which managers can recognize during reviews.
• Concerns about surveillance: On the other hand, monitoring can feel like micromanagement if it’s too detailed or constant. Tools like keystroke logging or screen capture may raise fears that managers don’t trust their team.
• Work-life balance worries: Employees want to know that monitoring stops when the workday ends. If boundaries aren’t clear, they may feel pressure to stay logged in longer than necessary.

The takeaway for managers: employees want accountability too, but they need reassurance that tracking is about fairness and clarity, not control. When you explain why you’re monitoring, keep the scope reasonable, and highlight how the system benefits them, you’ll strengthen trust instead of creating tension.

Moving Forward with Remote Tracking

Remote employee tracking doesn’t have to be complicated or controversial. When it’s done with clear goals, legal awareness, and respect for employee privacy, it becomes a tool for clarity and fairness rather than control.

The key is balance. Use tracking to confirm hours, support compliance, and keep projects on schedule, but avoid practices that feel invasive or unnecessary. Communicate openly, keep policies transparent, and always limit monitoring to what truly matters for your business.

In the end, tracking isn’t about surveillance, it’s about running your business with confidence. Use the right tools, set clear expectations, and explain the benefits openly. Done well, monitoring turns into a system that prevents payroll errors, safeguards compliance, and helps your team stay focused on results.

Remote work has become a permanent part of business life. By 2025, over 30 million Americans, roughly one in five workers, are outside traditional offices. For business owners, this creates a pressing challenge: how do you keep teams productive and accountable when you can’t see them in person

The answer lies in combining technology with transparency. Tools like GPS-enabled time clocks, IP address checks, and geofencing software can verify location and hours. 

Paired with regular check-ins, clear policies, and respect for privacy, these methods keep monitoring legal and ethical.

But tracking employees also brings tough decisions. What’s allowed under the law? How much oversight is too much? And how do you hold people accountable without eroding the trust you’ve built?

This guide walks you through proven methods, software options, and best practices for tracking remote employees in 2025.

What Is Remote Employee Monitoring?

Remote employee monitoring is the practice of tracking where and how employees work when they’re outside a physical office. It isn’t about spying. Instead, it’s a mix of tools and practices designed to confirm attendance, verify location, and make sure paid hours reflect actual work.

For example, a dental office with remote billing staff might use a time clock app that records GPS location at clock-in while a construction company could rely on geofencing to confirm crews arrive at job sites. 

Monitoring can take several forms, depending on company goals:

• Time tracking software: Employees clock in and out through apps on their phones or computers. 
• Location verification: GPS-enabled check-ins confirm where staff start or end their shifts. Construction firms often require field workers to clock in at job sites using mobile devices.
• Activity tracking: Some tools capture screenshots or track application use to show whether employees remain active during work hours. Support teams may use this to verify agents are available when scheduled.
• Communication logs: Daily check-ins through video calls, chat platforms, or shared boards provide visibility into progress and help prevent bottlenecks.

When implemented thoughtfully, remote monitoring provides reliable payroll data, ensures compliance, and keeps projects on schedule, while still showing employees that their privacy and time are respected.