The Effects of Employee Surveillance on Organizational Success

Employee surveillance is a response to the increasing datafication of work processes. Employers intend to use data collected from the surveillance systems to make the work environment more supportive of innovation and high productivity. In an ideal world, employee monitoring technology should ensure the optimal utility of human resources. However, in practice, surveillance practices such as periodic screen capture, the use of cameras, and keystroke logging lower employees’ productivity (Murty & Karanth, 2022). Low employee productivity has a direct correlation with organizational success; it reduces a company’s chances of gaining a sustainable competitive advantage. From a critical management studies perspective, employee monitoring is coercive (Cousineau et al., 2023). As Murty and Karanth (2022) explain, employees seem to be more productive while working under surveillance, but the coercive nature of this practice lowers their motivation and engagement. Employee surveillance also exposes organizations to reputational risk due to privacy and consent issues. Organizations that engage in employee monitoring risk low productivity due to high reputational risk, high turnover, and low employee engagement.

The negative ethical implications of employee surveillance expose organizations to high reputational risk. One of the main ethical issues is privacy. Employee surveillance technologies violate employees’ rights to privacy. In research conducted among US employees, 59% of the respondents raised ethical concerns about workplace monitoring (Haan, 2024). 68% of the respondents in the same research revealed that they would be uncomfortable working in an environment where the employer monitored their activities online. Consent is also a common issue in employee surveillance. Wang (2022) holds that there is limited consent in employee surveillance. Employers rarely disclose all the information they require to obtain informed consent to monitor employees’ activities. The resultant bad reputation that organizations suffer due to ethical concerns destroys the relationship with all other stakeholders. A bad reputation makes it difficult for the business to access capital due to mistrust from investors. It also becomes difficult to attract and retain talented employees, which further hurts the organization’s success.

The high burnout associated with working in an environment that is under constant surveillance increases the rate of employee turnover. In a study conducted on US employees across different industries, burnout ranked as one of the factors for low employee retention. 18% of the respondents reported increased burnout while working in an environment where they were surveilled (Haan, 2024). The burnout was associated with poor mental health and anxiety associated with a sense of perpetual observation. The American Psychological Association cites that 56% of employees who experience surveillance at work feel tense and stressed out (Lerner, 2023). The real and perceived stress prompts employees to look for better working conditions. High employee turnover undermines an organization’s success due to the high operational costs associated with recruitment. Further, poor retention of talent can affect an organization’s performance.

The low job satisfaction associated with workplace monitoring practices reduces employee engagement. The surveillance creates trust issues in the organizations; employees feel mistrusted and lowly valued, and this can lower their job satisfaction. A study involving US employees reveals that surveillance disrupts the smooth working relationship between the employer and employee. 23% of the respondents confirmed that workplace monitoring had the potential to erode their trust in employers (Haan, 2024). 31% of the respondents in the same study revealed that surveillance made them feel micromanaged, leading to low job satisfaction. According to Noercahyo et al. (2021), engaged employees have the enthusiasm necessary to perform at their best. They are innovative and committed to achieving the desired goals. Job satisfaction makes employees find meaning in their roles, leading to organizational success.   

Organizational success is greatly dependent on effective human resources management. In a quest for sustainable competitive advantage, companies should focus on avoiding any practices that can undermine employees’ productivity. Based on the existing research, employee surveillance lowers an organization’s chances of success. The monitoring can cause conflicts between an organization and stakeholders, such as investors, leading to poor financial performance. Studies also link the surveillance to increased burnout, which heightens employees’ intentions to leave. The ability to retain talented employees is one of the major secrets to organizational success. Employee monitoring further lowers job satisfaction and employee engagement, leading to low performance. In an era where the business environment is highly competitive, companies ought to eliminate issues that affect employee satisfaction.