Special offer 

Jumpstart your hiring with a $75 credit to sponsor your first job.*

Sponsored Jobs posted directly on Indeed with Urgently Hiring make a hire 5 days faster than non-sponsored jobs**
  • Visibility for hard-to-fill roles through branding and urgently hiring
  • Instantly source candidates through matching to expedite your hiring
  • Access skilled candidates to cut down on mismatched hires
Our mission

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines
6 min read

For any employer, maximizing productivity is a never-ending pursuit. In recent years, productivity tracking has become a common way to monitor daily employee performance, especially for remote workers.

But despite the perceived benefits, tracking your employees may not be the best way to boost their productivity. Here’s why the technique fails, and what strategies you can use instead.

Ready to get started?

Post a Job

Ready to get started?

Post a Job

Productivity tracking explained

Technology has transformed the way many employers measure productivity. Tracking productivity typically involves installing software on an employee’s computer that collects data related to its operation. This includes keystrokes, idle time and application usage. Some of this software includes surveillance capabilities using a camera or microphone.

This practice’s popularity boomed in the wake of the COVID-19 pandemic, as thousands of employees began to work from home. With no one in the office, employers turned to software to measure team performance. Unfortunately, it hasn’t necessarily had the intended effect.

How productivity tracking backfires

Logically, monitoring keystrokes and screen time seems like a good way to assess productivity. But more data doesn’t always lead to better understanding—in fact, it can have the opposite effect. Here’s why productivity tracking may do more harm than good.

Increased anxiety

Productivity tracking can quickly take a toll on an employee’s mental health. Constant monitoring can be a source of anxiety that overshadows the task at hand.

Employees may be more concerned with keeping their keystrokes up than completing their work effectively. Knowing they’ll be judged based on their technology usage may also raise employee stress levels, which can have the opposite effect of decreasing their productivity.

Distorted perception of performance

When your sense of employee productivity depends on keystroke numbers and idle screen time, you may not have an accurate picture of their performance. Because modern productivity tracking is typically done using digital software, employers often lack the context needed for an effective assessment.

For example, if an employee spends an hour on the phone with a client, looking solely at their data may give the impression that they haven’t been working. This isn’t only unfair to the employee, but it also does a disservice to the employer, who can’t rely on their software to assess performance.

Unhealthy workplace culture

Healthy workplace culture can effectively motivate employees and strengthen professional relationships. Unfortunately, productivity tracking can damage a carefully built atmosphere.

Trust is an important part of any professional culture. If employees feel they’re watched, they may perceive a lack of trust from their employer. When this happens, other company values can appear disingenuous, which can damage the overall sense of culture in the workplace.

Loss of employee motivation

Employee productivity tracking can also hinder motivation in the office. When logging enough keystrokes or screen time becomes central to the day’s focus, it can be hard for employees to remember their sense of purpose.

Tracking employees may also give them the sense that their contributions are worth no more than basic data, which can be demoralizing. If this is the case, employees can struggle to find the motivation to complete tasks effectively, and may even disengage from their work altogether.

Decreased productivity

Paradoxically, productivity tracking can damage the very thing it sets out to improve. Lack of motivation and increased stress can make it hard for employees to concentrate on tasks or projects. They may be more likely to procrastinate as a way to cope, causing them to get less done than before.

Damaged employee-employer relationships

Decreased productivity is one thing. But tracking software can have the more harmful effect of damaging your relationship with your team. Simply expressing a need to track employee productivity can make your team feel unvalued. In the worst cases, they’ll take offense to your efforts to boost performance. Tracking programs may also seem like a violation of employee privacy, which can decrease job satisfaction.

Your team may even feel stifled by the initiative. Perceived loss of control over their time can be a significant source of frustration and stress.

Alternatives to employee productivity tracking

Productivity tracking as it’s known today isn’t an effective way to boost employee performance. But what can you do instead? Here are some alternative strategies that may help your team improve productivity.

Establish a dialogue

Communication is the first step in boosting employee productivity. Establishing a healthy dialogue can prevent your team from feeling slighted by your desire to improve performance. Turning the initiative into a group effort can make employees more invested in the outcome.

Your team may already share your desire to improve productivity, meaning an open dialogue can be extremely motivating. In many cases, it can show them that they’re valued members of the company rather than resources to be managed excessively.

Identify productivity barriers

Tracking productivity can give you plenty of insight into how your employees use office technology. But it can’t pinpoint the source of underutilized work time.

Once you’ve opened a dialogue, you can begin to identify specific barriers to employee productivity. This could be anything from excessive meetings to unresolved conflicts. Locating the source of lost productivity means you can take steps to address it directly. This can be faster and more effective than trying to increase your team’s hourly word count.

Redefine productivity

What does “productivity” really mean? Your team likely has a variety of answers. High performance looks different for different people—and different roles. While one employee’s productivity may be effectively measured in keystrokes, another’s may be more dependent on client satisfaction.

Because success varies from role to role, productivity tracking software isn’t one-size-fits-all. Sitting down with employees to define what high performance looks like to them can help you develop a productivity-measuring system that works.

Promote healthy work-life balance

An unhealthy work-life balance can lead to burnout and loss of focus on the job. Instead of adding to your team’s stress, try relieving it by encouraging them to establish a healthy line between the professional and personal worlds.

You can do your part to promote a balanced life by building one for yourself. When the day is done, leave your work at the office. Avoid contacting employees after hours and promote the use of vacation time and sick days when necessary.

Try coaching

Sometimes what employees need most is a leader who can guide and support them. You can fill this role by adopting a coaching technique. Using a coaching strategy, you’ll work with employees individually to establish a plan for success. This involves identifying productivity obstacles and working together to develop manageable solutions.

A method like this can help employees take the initiative to boost their own productivity in ways that suit their unique needs. Making your team part of the process can increase performance in deeper ways than restricting apps and monitoring keystroke data can.

Recent Company culture articles

See all Company culture articles
Job Description Best Practices
Optimize your new and existing job descriptions to reach more candidates
Get the Guide

Two chefs, one wearing a red headband, review a laptop and take notes at a wooden table in a kitchen setting.

Ready to get started?

Post a Job

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.