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In April 2020, the global demand for employee monitoring software increased twofold. The frequency rate of the search phrase “how to monitor employees working from home” rose by 1705%. The sale of systems tracking employee activity spiked.

The challenge posed by the implementation of remote work has not been eliminated. On the contrary – just to give an example, in April 2023, new regulations regarding remote work were added to the Polish Labour Code. Therefore, one may reasonably predict that the popularity of remote work (including the hybrid mode) will continue to rise. We will still be facing the fundamental question whether employees working from home or another place outside the company premises should be monitored. And if so, how should it be done?

Work monitoring is an indispensable tool for production companies, industrial plants and logistics operators that work in transit, with machines, and along production lines. Work monitoring enables quick detection and elimination of downtime and irregularities in how business processes function. It also enhances the level of employee safety. However, when it comes to intellectual work (which is the type of work usually performed by remote employees), monitoring seems far from effective. In such situations, employers should switch to task-based work, says Sebastian Młodziński, CEO at TIMATE.

Ingenious employers

More often than not, employers still resort to various ways of exerting their control over employees who work remotely. ExpressVPN’s report says that the most frequent methods include checking the Internet browsing history and the time spent online, the use of applications, real-time screen monitoring, and active working hours. Furthermore, employers use screen capture tools and they go through chats and message logs.

Video conferences and phone calls are their favourite ways to verify if employees are actually doing what they should be doing. 41% of employers prefer e-mail reports, 40% choose programs designed for reporting tasks and results, while 26% use software that measures the time devoted to particular tasks.

Such practices are extremely popular. The survey conducted for Vmware in 2021 says that already back then 84% of Polish entrepreneurs admitted that they used or were planning to implement tools to monitor employee performance during hybrid work. Another survey (Microsoft Annual Work Trend Index Report 2022) gives us an insight into what actually motivates employers. It says that as many as 85% of responding managers have doubts about the engagement of employees who work remotely.

Work monitoring tools will not do their job if they are used just to keep employees in check. My experience tells me that Polish entrepreneurs are starting to see that effective monitoring of work is not about controlling the employees, but that it should consist in analysing the use of the working time and the flow of business processes for the purpose of creating a more friendly and more efficient work environment that would benefit both employees and employers, explains Sebastian Młodziński from TIMATE.

Monitoring – a double-edged sword

Though the market provides the tools and the law defines how they can be used, there are more and more studies and opinions which question the validity of remote work monitoring. A report by the European Research Council indicates that monitoring may decrease the level of employee satisfaction and increase stress, which, in turn, can intensify employee rotation. Gartner’s experts point out that work monitoring causes anxiety which leads to occupational burnout, because remote employee have difficulties “turning themselves off”. Afraid that they are constantly under surveillance, they keep making their workday longer.

Another thing is that employees dislike control systems, because they are not sure about the data collected by the employers. 41% of respondents say that no one in their organisation has informed them about the type of collected data, the reasons for data collection and the ways of using such data. According to Gartner, even when such information is provided, employees have difficulties understanding it because of its low quality.

The conclusions of the Microsoft Annual Work Trend Index Report 2022 also suggest that remote employees should have more freedom. As many as 87% of respondents assert that the home office mode has not affected their effectiveness. Gartner’s studies indicate that flexibility in terms of the working place and time as well as the selection of co-workers may boost employees’ performance.

To monitor or not to monitor?

What should employers do? It seems there is no one simple answer. Of course, when employees work remotely, it also needs to be formally verified and documented that they actually perform the contract and their duties. For this purpose, electronic time and attendance systems come in handy, since they can be also used within remote/hybrid work models. As a result, employees can register the start of work, the end of work, the number and length of breaks, and the location they work from. Such information is needed by payroll departments and individuals in charge of HR or financial settlement of contracts and agreements. So formal control cannot be avoided.

Another thing is the monitoring of what employees do precisely. When it comes to remote work, it is better to choose a different way of assessing its effectiveness.

Entrepreneurs should strike a happy medium. It is, of course, impossible to switch monitoring off all together, but by constant checking whether employees sit at their computers and what they write in their e-mails, you won’t make them more effective or improve their results. Considering what the studies indicate, I would go so far as to say that this approach will make them demotivated and disaffected, comments Sebastian Młodziński from TIMATE. It seems that the best solution here is task-based work, because what really counts is the actual amount of work performed by employees, not the number of times they clicked the mouse. In other words, it is a good idea to know where the employee sleeps, but it makes no sense to check under the bed.

The practice of organising remote work is a relatively new thing. However, employers will have to face the necessity of providing their employees with the possibility of working in a remote or hybrid model. The sooner they develop standards acceptable by all, the easier it will be for them to adapt to changing market conditions and expectations of employees.

Of course, it is not easy to adopt this perspective on investments in technology. However, it is always a good idea to analyse the situation and verify how a new tool will change the company’s modus operandi by looking at actual figures provided by manufacturers. All in all, we innovate, because we want our organisation to work better, faster and more efficiently. With higher efficiency, we gain more time for new projects and more time is more money. But there is one thing to remember: choose solutions which provide a quick return on investment (ROI). In a way that is easy calculate and predict.

An ideal world or reality?

It sounds too perfect to be true. And for many managers it is nothing more than pipe dreams. However, ROI is not just fantasy – it is reality and real help in assessing the profitability of any expense. Including expenses on IT. As for TIMATE and our solution, savings generated in specific areas can be easily calculated. For instance, the savings resulting from the enhanced use of the working time are from 5% to 20% of staff costs and efficiency increases by at least 5%. Financial gains are evident and they form the basis for our settlement with customers. We do pilot implementations to prove that savings are not just empty promises, but the actual effect generated by the system.

Importantly, ROI can only be calculated when we know the initial parameters and we measure how they change after the new solution has been implemented. The more precise the indicators provided along with the system, the more accurate the calculations will be. But what can be measured and where can you save by implementing an IoT tool?

Where do the profits come from?

IoT systems are networks of interconnected electronic sensors that collect and exchange data regarding the work of people and devices. In this definition, the crucial word is “data”. Data and data analysis. By those means, an entrepreneur can assess how the company is operating and implement relevant improvements as well as verify at once if the modifications have brought the expected results. The way the business functions can be quickly enhanced, which means savings. How come?

Firstly, better work organisation.

Ongoing visibility of processes makes it possible to instantly detect any sort of irregularities. Ineffective circulation routes, an inadequate layout of workstations, a messy schedule of deliveries which causes downtime, faulty team composition – all of these affect productivity. By eliminating errors and adjusting the environment to the needs of employees on the one hand and of the production processes on the other, it is possible to boost the performance of the entire enterprise.

Secondly, smarter use of the working time.

The data regarding the work of teams enable better time management and reduction of downtime that is caused by faulty organisation of processes or by queues at workstations or machines. TIMATE’s surveys indicate that every employee in large production and logistics businesses wastes 460 minutes per month on average. Minutes that are paid for. By streamlining their processes, enterprises can eliminate downtime and make a much better use of their employees’ working time.

Thirdly, more effective management of resources.

That’s right – when we know the causes of downtime, we can manage people’s work in a smarter way. And make better employment plans as well. Sometimes the problem is not the insufficient headcount, but poor work organisation, e.g. faulty team composition, an ineffective layout of workstations, too few machines or devices. It is a notorious situation when a company pays for overtime and it has massive downtime on the very day when the overtime is required. The optimisation of processes leads to a much better use of the available teams. In addition, it may turn out that when the working environment is better organised, employees perform their duties faster, which means that more orders can be accepted and more profit is generated.

Fourthly, improved employee safety.

IoT systems can also monitor and support employee safety. Studies by IOSH indicate that employees working in a safe environment are more effective and satisfied. They also go on the sick leave less often. This provides an obvious boost for the company’s overall performance. In addition, safer working conditions means fewer accidents, so fewer damages and fines for defective organisation of the workplace. This, in turn, means that the company saves money.

Fifthly, better communication and exchange of information.

The State of the Global Workplace: 2022 Report by Gallup says that the global cost of disengaged and unproductive employees amounts to USD 7.8 trillion. In order to boost engagement, you need communication. The McKinsey report shows that teams that communicate effectively achieve the increase of performance at the level of 20–25%.

Employees want to be kept informed about the tasks they are supposed to do and about how their work is assessed. Of course, it is very difficult to provide such feedback without the support of technology. Managers are unable to make daily observations and evaluate each and every employee. They are assisted by automation and IoT systems which can independently summarise the business day and assess the teams, providing all necessary information to employees.

Digitalisation with all its various dimensions is not just a fashion that will go away. It is an opportunity for companies to work in a faster, more efficient and more automated way as well as to implement better organisation of processes that will lead straight to higher profits.

The 4-day working week was tested at Microsoft’s Japanese branch in 2019 as part of the Work Life Choice Challenge 2019 Summer project. The result of this experiment was the increase of employee performance by 40% and the reduction in the electric energy consumption by 23% in comparison with a similar period in the previous year.

Spain and Great Britain also tested the shorter working week. It has been successful in Iceland. In its report on innovation trends, the Polish Agency for Enterprise Development mentions that the shorter working time is one of the leading trends in modern economies.

The interest in the new model of work varies depending on the sector. For instance, people working in logistics or gastronomy, where such changes are impracticable, present a less optimistic approach to the working time reduction.

For and against – an entrepreneur’s perspective

What do employers think about such changes? Well, opinions vary. It is no wonder that managers fear the reduction in performance or the necessity to employ new people, which would mean higher costs. Although so far the trials of modified working time in various countries have resulted in increased employee effectiveness, it is hard to predict if that would be a long-term effect. On the other hand, a shorter working week would generate savings in terms of office/building utilisation.

When it comes to such a significant change, it will be very important to have an in-depth analysis of the company’s daily functioning. This means ongoing monitoring of processes as well as detection and immediate elimination of errors that cause delays. It will be particularly hard for production and industrial plants. The reason is that one can hardly expect from an employee working at the assembly line to do the job faster. However, it may turn out that it is possible to organise the work of the entire team more effectively without accelerating tasks which require time and precision.

Time is as precious as gold

It can be expected that enterprises will start by choosing a task performance model that does not require any team extension. They will strive to do the same work, but quicker. In order to increase the chance of success, they will need to pay special attention to the use of the working time, i.e. to how employees spend their time at work, where they are, whether they perform the assigned tasks and whether the number of breaks is sufficient.

This new work model may be a trap. It is not about exploiting your employees by making them work faster. Employees deserve to take their breaks, to rest, to have enough time for lunch. In terms of work time tracking, fairness is and will be a priority. That is why the employer will have to ensure that the employees actually do the job, e.g. by using task lists and schedules as well as by monitoring the work flow and the number of breaks taken. On the other hand, managers will need to make sure that each and every employee has sufficient time for rest. Technologies may help with that, e.g. the TIMATE system.

The optimised use of resources is crucial in a well-organised and efficient enterprise. To function smoothly, a company needs to monitor its employees and check whether they meet the job position standards, whether there is no downtime that could be avoided and whether there is no work overload anywhere. Especially when a company wants to shorten the working hours and keep its efficiency at the same time.

Safety is a priority.

Production businesses will find it hard to make their work faster. In such cases, one should take a closer look at the processes and the organisation of the teams’ work. It may be that due to the work flow optimisation teams will gain more time to perform their tasks.

Let’s imagine a factory which has a problem with the shortage of its crucial equipment, e.g. machines, forklifts or diagnostic devices. Employees who work there are simply unable to perform their duties effectively, because they have to wait until the tool they need becomes available. In other cases, they may wait for other teams to complete their work or cover excessive distances between various halls and workstations. What is the result? They waste their time instead of working effectively and without downtime, but that is not their fault. And their boss is losing money fast. A well-organised process, where the work flows smoothly, means better and quicker results. And what is more, it makes employees happy.

When it comes to blue-collar workers, safety at work is a priority. Let us bear in mind that safety may be compromised, when scaffold workers or machine operators are required to do their job faster. That is why employers will have to ensure that the personal protective equipment is always used. It would also be helpful to implement tools that enable accident alerts or an immediate call for help by people who have been injured.

More on the shoulders of leaders

Such extensive changes in the work organisation require the engagement of effective leaders. Companies will not be able to afford to employ random people as managers. For a team to tap its full potential, it must be adequately motivated. It can be expected that with time the vision of a 3-day weekend will lose its power to encourage employees to work more effectively. That will be the task of the leaders.

To select good leaders, one has to observe and evaluate the work of managers and of those managers’ teams. However, this assessment should take place at shorter intervals than quarterly or annually. Modern tools such as TIMATE allow to obtain current data regarding the work of individuals and teams and then to use such data for the purpose of assessment. As a result, it is much easier to choose leaders who can be efficient managers and motivators.

The widespread adoption of the 4-day working week seems more and more probable. Companies that will ensure the optimisation of processes, employee safety and the efficient use of the working time, while implementing the shorter working week, will be able to maintain their performance level without a significant headcount increase.