How to Know if Remote Employees Are Working Without Spying

So, you’ve got remote employees. You trust them. Mostly. But a little voice in your head keeps whispering, “Are they actually working… or just using a mouse jiggler to appear available on Teams or Zoom?”

If that little voice is bothering you, don’t worry—you’re not alone. Every manager in a service-based business eventually faces the same dilemma: how to get the accurate time and task data for profitability and project planning without stepping into surveillance territory. How to know if remote employees are working.

You could install creepy keystroke loggers, demand hourly screenshots, or make people hold up today’s newspaper on Zoom, but all these methods don’t work long-term. Instead, let us guide you through ethical and effective ways to track remote employees.

It’s less about playing detective and more about practicing what we like to call “trust, don’t monitor”.

How do employers usually monitor remote employees?

In most service-based companies, managers are the ones who want visibility, while employees want autonomy. And between those two, there’s a bunch of monitoring tools that range from project management software to full-blown surveillance apps.

Here’s a list of 6 common methods of employee monitoring. Some are helpful. Some are intrusive. And some cross the line entirely. See for yourself.

#1 Time tracking software

The most obvious choice is to use time tracking software.

Employees log hours manually or use timers that track when they “clock in” and “clock out” of tasks. A bunch of tools are available, including Harvest, Toggl, and Clockify. Agencies, consultancies, and law firms often use them because such businesses rely heavily on billable hours to track their profitability.

In theory, these timers work as intended, serving as a direct link between hours worked and billing. Plus, historical data can look useful for forecasting staffing needs and planning capacity. And on paper, employees seem to understand why such tools are used (for billing, not surveillance), so they are more open to trying them.

However, the reality is very different.

Time tracking software often relies on manual entries that are inflated or forgotten. In reality, manual time tracking is as accurate as the person doing it; the more precise your employees are, the more accurate their time data will be. But you can’t expect them to remember and record every Slack thread, meeting, and a 3-minute client revision.

That’s why manual time trackers don’t work: they depend on constant human input, which is unrealistic and prone to error. Over time, using them creates skewed data that doesn’t reflect how people actually spend their days. Instead of giving managers clarity, manual time trackers add another layer of guesswork.

#2 Keystroke and activity monitoring

Some popular software can log every keystroke, mouse movement, and idle time. Some of them even assign “productivity scores” based on how much your employees type.

These tools are extremely granular, so managers who equate typing speed with work output love them.

When we say “extremely granular”, we mean recording sensitive data (like passwords) and starting to feel Big Brother-ish. These tools usually create a toxic environment where employees are afraid to pause and think, because “thinking” looks like “idleness”. The good news is that employees usually find hacks to appear as if they are constantly working (just think of those $7 mouse movers). 🙂

#3 Screenshot capture

You’ve probably heard of screenshot capture apps: at random intervals, these tools take screenshots of employees’ screens. Some programs blur sensitive info, others don’t. We at Memtime view them as the epitome of “We don’t believe you unless we see it.”

The good news here is that managers get visual proof of what’s on employees’ screens. These screenshots can be used to demonstrate work for clients (“see, we really were designing your Pricing page at 2:14 PM”).

But the bad news? Man, where do we even begin?

These tools are highly invasive and, not to mention, borderline illegal. Capturing screenshots of someone’s screen often means exposing sensitive personal information, private conversations, or unrelated browsing activity. When that data is stored and shared, it crosses into serious privacy concerns.

Screenshots can easily cross the line between helpful oversight and intruding on employee privacy.

#4 Web and app usage tracking

Web and app usage tracking tools monitor which websites and apps employees use, and for how long. They often present data in dashboards like 3 hours in Excel, 2 hours in a Google Calendar meeting, and 45 minutes in Chrome, etc.

Are these tools the worst ones from the list? Probably not.

They can reveal time sinks to your team (how much time they spend on admin or in meetings) and help determine which tools are not being used by anyone in your team.

But these tools don’t work if there’s no context. For example, if you see that an employee spends 20 minutes on Facebook daily, you should be given the context that explains whether they are procrastinating or just managing a company’s ad account.

#5 GPS and location tracking

GPS and location tracking systems are often used in mobile workforces. Think consultants traveling to clients, engineers visiting sites, or logistics staff.

These tools are pretty accurate proof of where people are during billable on-site work, and that’s why they can help with mileage reimbursement and client transparency. But for office workers, it feels downright creepy and even raises legal/ethical issues about off-hours tracking (what if it’s still on after 6 PM?).

#6 Video and webcam monitoring

For companies that require employees to stay on camera during work hours, video monitoring software that takes periodic webcam snapshots sounds like the perfect solution.

With these types of apps, you get tangible proof that your employees are physically present.

But do you really need such proof? These tools may make sense in rare cases where security or compliance requires visual verification, but in most cases, video monitoring is demoralizing and a huge privacy invasion (just think of capturing household moments).

#7 Call and chat monitoring

These tools record calls for quality assurance, scan Slack/Teams messages, or flag keywords in chat for compliance. They are common in law, finance, and customer support, as managers can review interactions with clients and help spot patterns of miscommunication or training gaps.

Call and chat monitoring truly blurs the line between compliance and spying, and that’s why employees tend to self-censor, turning into robots and undermining open collaboration with clients.

Plus, just imagine catching your employees’ personal or sensitive information while reviewing their chats. “Illegal” is the first word that comes to mind.

Why monitoring remote employees actually matters

You know that you should track the productivity of employees working from home.

We at Memtime know it.

But why is such monitoring so essential for service-based businesses (agencies, law firms, consultancies)?

Because, when done right, it creates the foundation for profitability, planning, and precision. Here’s why.

Time truly equals money. Without knowing how long tasks take, your margins vanish into thin air. That’s why accurate utilization and billable hour data are the core of business planning.

In service businesses, your product is your team—their creativity and problem-solving skills—which make time the biggest cost driver and revenue driver. If you don’t know where it’s going, you won’t know where your profitability is going.

Just think of these realistic scenarios that, unfortunately, happen more than often:

• Imagine your agency quotes a website redesign at 120 hours. But in reality, it takes 180 hours because research, client revisions, and QA weren’t fully factored in. Without accurate task timing data, that 60 extra hours quietly ruins your margin. Now multiply that across multiple projects, and you’re burning thousands of dollars you didn’t even know you lost.
• Your business consultants are clocking 40+ hours a week, but only 22 of those are billable. The rest vanish into admin tasks, internal meetings, and emails. Unless you track utilization (billable vs. non-billable hours), it looks like everyone’s working hard, but your business is actually bleeding profitability.
• A tax firm works overtime on a high-profile client, spending double the usual hours to do a tricky audit. But because no one’s tracking time per client, the firm doesn’t realize that this client is actually unprofitable despite paying top rates.

When you have the right time data, you know to either adjust the scope, renegotiate fees, or walk away.

That’s why accurate utilization and billable hours are a must-have. They show you:

• How to quote projects realistically.
• How much of your team’s time actually generates revenue.
• Which clients or projects are profitable (and which are not).
• Whether you can scale with your current staff or need to hire.

You can’t rely on gut feelings when it comes to work hours; you need to measure them.

Tracking employee activity with Memtime

Memtime is designed as a silent and respectful time tracker that captures everything you and your employees need. It’s more of a time tracking assistant than a watchful eye.

So, if you are trying to measure productivity, not just team presence, Memtime is the tool for you.

Here’s what it can do for your team:

• It captures time automatically with background tracking. Memtime runs quietly in the background on Windows, Mac, and Linux, automatically capturing activity across programs, browser tabs, documents, emails, and even phone calls via VoIP or iPhone. There are no timers, pop-ups, or tracking prompts; your employees just work and Memtime does all the remembering.
• It has a local-only storage which makes Memtime privacy-conscious. Memtime never sends your data to the cloud; all tracking data is stored locally on the employee’s device, completely invisible to anyone (even managers and clients) else unless the user decides to share it. No screenshots, no keystrokes, and no boss hovering over their work.
• Your employees get a visual timeline of their days. Memtime presents all captured activity in a visual, chronological timeline, the signature Memory Aid. Your employees can view their days in intervals from 1 to 60 minutes, zoom in for a granular view, or step back for a broad overview.

• Your employees can create time entries. Once their days are captured, it’s up to them to decide which chunks become time entries for tracking. They can click or drag activities from the Memory Aid into time entries, assign them to projects, tasks, or write comments, and then export them into project management software. This selective sharing gives them total autonomy.
• ‍Your employees can log time with minimal effort, as Memtime integrates with 100+ project and billing tools (e.g., Asana, Jira, ClickUp, etc.), offering 2-way sync. They can import their projects and tasks and then export time entries to those projects in just a couple of clicks.

• Flexible time increments are available. Memtime’s time increments, from 1 minute up to 60, are fully adjustable. Lawyers might zoom in on 6-minute blocks while agency teams often stick with 15-minute chunks.
• Your employees get custom reports. Memtime provides customizable reports on individual performance, project utilization, or productivity trends. Everything your employees need for planning is within Memtime.
• There’s no AI; your employees have all the control. Unlike some AI time trackers that upload your data to train algorithms, Memtime is focused on privacy. You can create rules (like creating a time entry whenever a client name appears in a subject line), but suggestions only appear after your approval.

Memtime is all about “trust, not monitor”. It’s a part of our culture and we believe it should be a part of yours, as well.

Our tool is designed to protect employee privacy while giving you, the manager, reliable insights. Every team member has full control over what gets shared, ensuring transparency without intrusion.

So, how does Memtime sound now?

If you’re ready to take the tool for a spin, start with our 2-week free trial (no credit card required!), so you can see exactly where your time goes, without timers, spreadsheets, or surveillance.

Or.

Or you can book a demo. We’ll show you and your colleagues exactly how Memtime works, answer your questions, and explain how to get the most out of it. It only takes about 15 minutes… but it’s so useful, it’ll feel like 5. 🙂

Say hello to team-friendly, effortless time tracking.

Real productivity insights don’t come from surveillance

At the very end of this article, I want to remind you of one thing.
Screenshot galleries, keystroke loggers, and webcam monitoring provide activity noise; they don’t give you insight. Moreover, these invasive tactics create such a toxic work culture, where no one is recognized or rewarded based on performance, but fake presence.

Real productivity insights don’t come from monitoring.

You don’t need to know how many times an employee clicked their mouse. What you need to know is:

• How much time was billable versus non-billable.
• How long core tasks and projects actually take.
• Which projects or clients deliver value, and which quietly drain profitability.

These metrics, like utilization rate, revenue per employee, and average time per task, give you visibility without crossing into surveillance. But for this data to be accurate, one more element is critical: your team needs to be all in. If employees don’t trust the system, they’ll either resist it or game it. That’s why transparency and privacy must be integrated into the solution from day one.

And that’s why Memtime is the solution. No screenshots. No spying. No resentment. Just clarity.

We respect the boundary between work visibility and personal privacy, helping you create a culture of trust while still providing the insights needed to complete projects profitably.

Wrapping up

At the end of the day, it’s up to you. You can either keep pretending screenshots, keystroke logs, and webcam selfies are “insights”, or you can accept the truth that they’re about as useful as measuring productivity by how many times someone sneezes during the workday.

Real productivity isn’t hiding in pixelated screenshots. It’s in the numbers that actually matter, such as billable vs. non-billable hours and project profitability.

And Memtime can get you all the necessary information. It gives you clean, reliable data while letting your team keep their dignity intact (and their webcams off, of course!).

So if you’re tired of pretending surveillance is a business strategy, you should try trust instead. I promise you it comes with higher margins. 😉

Why shouldn’t I just use screenshots or keystroke monitoring to track remote employees?

Screenshots and keystroke loggers are invasive and often illegal if they capture personal data. They also create distrust, reduce morale, and don’t provide any meaningful productivity insights. Effective activity tracking focuses on outcomes, project completion, and accurate time reporting, not constant surveillance.

How can I measure employee productivity without invading their privacy?

Focus on business-relevant metrics, like billable vs. non-billable hours, task completion times, and utilization rates. Tools like Memtime allow employees to track time automatically and share only what they choose, providing you with accurate data while respecting employee privacy.

Is monitoring employees legal in the US?

Employers can monitor company-owned systems, but there are restrictions. Federal laws, like ECPA and SCA, allow monitoring for legitimate business purposes. Some states, such as California and New York, require consent or notice, especially for biometric data or private communications. Excessive surveillance may violate labor laws or employee rights.

Why is time tracking so important for service-based businesses?

In agencies, consultancies, law firms, or IT services, time is the biggest cost and revenue driver. Accurate tracking shows which tasks and clients are profitable, supports realistic project quotes, and improves resource planning. Without it, margins can disappear despite hard work.

How does Memtime make time tracking ethical and non-invasive?

Memtime runs in the background, capturing activity on employees’ devices locally. Employees decide which time entries to share with managers or project tools. There are no screenshots or keystroke logs, and all data stays private unless explicitly shared by the user.

Can Memtime integrate with my existing project management software?

Yes! Memtime integrates with tools like Asana, Jira, ClickUp, and many more. Employees can pull projects from these tools and export time entries back with a click, providing accurate task duration data without almost any manual work. This ensures you get insights while employees keep their control.