Best Employee Monitoring Software for Small Businesses

The best employee monitoring software depends on what you actually need to track. If you're running a restaurant, retail store, or service business with hourly teams, you probably don't need screenshots of every mouse click. You need to know your team showed up on time and worked their scheduled hours. But if you're managing remote workers across projects, you might want deeper productivity insights.

We've compared 8 employee monitoring tools, from basic time clocks to full computer surveillance. Here's how to pick the right one for your team.

TL; DR Best employee monitoring software

Not all monitoring tools work the same way. Some track basic time and attendance. Others capture screenshots, log keystrokes, and monitor every app you open. Here's what matters most: matching the tool to what you actually need to monitor.

• For small businesses with hourly teams: Homebase tracks time, verifies locations with GPS, and prevents buddy punching without screenshots or surveillance features. Best for restaurants, retail, and service businesses.
• For remote teams needing productivity insights: Time Doctor monitors active time, takes periodic screenshots, and tracks app usage. Popular with distributed teams working across projects.
• For screenshot-based monitoring: Monitask captures screens at random intervals and tracks activity levels. Affordable option for visual verification of remote work.
• For advanced security and insider threat detection: Teramind logs keystrokes, monitors file transfers, and detects suspicious behavior. Built for businesses handling sensitive data.
• For customizable activity tracking: Hubstaff measures keyboard and mouse activity, tracks URLs visited, and offers GPS tracking. Flexible for various business types.
• For user behavior analytics: ActivTrak uses AI to analyze work patterns and identify productivity trends without constant surveillance.
• For visual time tracking: Clockify offers calendar-based time management with task tracking and project budgeting.
• For privacy-focused workforce analytics: Insightful monitors productivity without keystroke logging or invasive tracking methods.

What is employee monitoring software?

Employee monitoring software tracks what your team does during work hours. It ranges from basic time clocks that verify when people show up to full computer surveillance that records keystrokes and captures screenshots. Some tools just log hours worked and location, while others monitor every app, website, and file transfer. The right choice depends on whether you need simple attendance tracking for hourly workers or detailed activity monitoring for remote teams.

Types of employee monitoring

Time and attendance tracking (best for hourly teams)

What it does:

• Tracks when employees clock in and out
• Verifies work location with GPS
• Prevents buddy punching with photo verification
• Calculates hours, breaks, and overtime automatically
• Sends reminders for missed clock-ins

Who needs it: Restaurants, retail stores, construction crews, salons, healthcare facilities, and any business with hourly workers or field teams.

Tools in this category: Homebase, Clockify, Buddy Punch

Why it works: Your team gets accountability without feeling watched. No screenshots, no keystroke logging, just verification that people showed up and worked their shifts.

Productivity and activity monitoring

What it does:

• Tracks which apps and websites get used
• Measures active time vs. idle time
• Takes random or scheduled screenshots
• Monitors mouse and keyboard activity
• Creates productivity scores and reports

Who needs it: Remote teams, agencies managing client projects, companies with desk-based workers spread across locations.

Tools in this category: Hubstaff, Time Doctor, ActivTrak

Why it works: You get visibility into how work time gets spent without being in the same office. Good for managing distributed teams or tracking billable hours.

Full computer surveillance and security

What it does:

• Records every keystroke typed
• Captures continuous screen video
• Monitors all file transfers and USB activity
• Tracks email and chat communications
• Detects suspicious behavior patterns
• Blocks unauthorized websites or apps

Who needs it: Companies handling sensitive data, financial services, healthcare organizations with HIPAA requirements, businesses worried about insider threats or data breaches.

Tools in this category: Teramind, Veriato, InterGuard

Why it works: Maximum security and compliance documentation. You can prove what happened on company devices and prevent data leaks before they occur.

The bottom line: Match monitoring to your actual risk and needs. Hourly teams need time verification. Remote workers need productivity insights. High-security environments need full surveillance. Using surveillance tools on hourly retail workers? That's overkill and kills morale.

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8 best employee monitoring software options

Here's how the top tools stack up, from basic time tracking to full surveillance. We've tested or analyzed each one for features, pricing, and who they work best for.

1. Homebase: best for small businesses with hourly teams

Homebase tracks time and verifies locations without invasive monitoring features. Built specifically for restaurants, retail, salons, and service businesses where you need to know your team showed up and worked their scheduled hours.

Top features:

• GPS time clock with photo verification: Your team clocks in from their phones, and you get a photo plus GPS location to verify they're actually there. No more buddy punching or "I forgot to clock in" excuses.
• Automatic break and overtime alerts: Get notified before employees hit overtime or miss required breaks. Stay compliant without watching the clock yourself.
• Built-in scheduling and team messaging: Create schedules, publish them instantly, and communicate with your whole team without group texts. Everything connects to timesheets automatically.
• Integrates with payroll: Hours flow straight to payroll with one click. No manual entry, no math mistakes, no Sunday night spreadsheet panic.
• Works on any device: Employees clock in from phones, tablets, or a shared iPad at your location. You manage everything from your phone while away from the business.

Pricing:

• Free plan: One location, up to 20 employees
• Essentials: $20/location/month (unlimited employees)
• Plus: $48/location/month (adds hiring tools)
• All-in-one: $80/location/month (includes HR compliance)
• Payroll add-on: $39 base + $6/employee/month

Pros:

• Free plan available for small teams
• All-in-one solution (scheduling, time tracking, payroll, messaging)
• No invasive surveillance features (no screenshots or keystroke logging)
• Built specifically for hourly workers
• Easy setup and beginner-friendly interface

Cons:

• Limited productivity analytics compared to surveillance tools
• Best for shift-based businesses, not ideal for project-based remote work

Best for: Small business owners managing hourly teams who need accountability and compliance without making employees feel monitored. If you run a restaurant where servers swap shifts, a retail store with multiple locations, or a salon with flexible schedules, Homebase handles the time tracking and scheduling headaches so you can focus on customers.

2. Monitask: best for screenshot-based productivity tracking

Monitask captures random screenshots throughout work sessions to verify remote employees stay focused. Affordable option when you need visual proof of activity.

Top features:

• Random screenshot capture: Takes screenshots at customizable intervals to show what's on employee screens
• Activity level monitoring: Tracks keyboard and mouse activity to measure engagement
• Time tracking with productivity ratings: Categorizes time as productive or unproductive based on apps used
• Detailed reporting: Shows exactly how time gets spent across projects and tasks

Pricing: Starts at $4.99/user/month with a free trial available

Pros:

• Affordable pricing for screenshot monitoring
• Simple interface for quick setup
• Good for managing remote freelancers

Cons:

• Screenshot monitoring can feel invasive to employees
• Limited features compared to more comprehensive tools

Best for: Small teams managing remote contractors or freelancers where you need visual verification of work being done.

3. Time Doctor: best for remote team management

Time Doctor combines time tracking with productivity monitoring and detailed analytics. Popular with agencies and distributed teams managing multiple client projects.

Top features:

• Automatic time tracking: Tracks time spent on tasks and projects automatically
• Optional screenshot monitoring: Take screenshots at set intervals (can be disabled for privacy)
• Website and app tracking: See which tools and sites employees use during work hours
• Distraction alerts: Notifies employees when they visit non-work sites
• Payroll integration: Exports hours directly to payment systems

Pricing: Starts at $7/user/month with a 14-day free trial

Pros:

• Comprehensive productivity insights
• Works well for billing clients based on tracked hours
• Flexible screenshot settings

Cons:

• Can feel like micromanagement to some employees
• More features than most small businesses need

Best for: Remote teams and agencies that bill clients hourly and need detailed productivity breakdowns across projects.

4. Hubstaff: best for customizable activity tracking

Hubstaff measures productivity through keyboard and mouse activity while offering flexible monitoring options you can adjust based on team preferences.

Top features:

• Activity level tracking: Monitors keyboard and mouse usage to gauge active work time
• GPS tracking and geofencing: Verifies location for field teams and remote workers
• Customizable screenshots: Choose frequency or disable entirely based on your approach
• URL and app monitoring: See which websites and applications get used during tracked time
• Project budgeting: Set time and budget limits for projects with automatic alerts

Pricing: Starts at $4.99/user/month with a 14-day free trial

Pros:

• Highly customizable monitoring levels
• Good for teams with both office and field workers
• Affordable entry pricing

Cons:

• Activity tracking based on keyboard/mouse can miss thinking time
• Setup complexity increases with more features enabled

Best for: Businesses with mixed teams (office, remote, and field workers) who need flexible monitoring that adapts to different work styles.

5. ActivTrak: best for AI-powered behavior analytics

ActivTrak uses AI to analyze work patterns and identify productivity trends without constant surveillance. Focuses on insights over invasive monitoring.

Top features:

• Behavior analytics: AI identifies productivity patterns and work habits automatically
• Productivity coaching: Provides insights to help employees improve focus and efficiency
• Website and app categorization: Automatically labels activities as productive or unproductive
• Real-time dashboards: See team activity and productivity scores at a glance
• No keystroke logging: Monitors behavior without recording what employees type

Pricing: Free plan available; paid plans start at $10/user/month

Pros:

• Free plan for small teams
• Less invasive than screenshot or keystroke tools
• AI-powered insights save time on manual analysis

Cons:

• Premium features locked behind higher-tier plans
• Categorization sometimes misses context (research can look like distraction)

Best for: Teams who want productivity insights and coaching without heavy surveillance features that damage trust.

6. Teramind: best for security and insider threat detection

Teramind provides full computer surveillance with keystroke logging, file monitoring, and behavior analysis. Built for companies prioritizing data security and compliance.

Top features:

• Keystroke and screen recording: Captures everything typed and records screens continuously
• File transfer monitoring: Tracks all files moved to USB drives, email, or cloud storage
• Insider threat detection: AI identifies unusual behavior that might indicate data theft or policy violations
• Email and chat monitoring: Records all communications for compliance and security reviews
• Website and app blocking: Prevents access to unauthorized sites or applications

Pricing: Starts at $12/user/month (5 user minimum)

Pros:

• Comprehensive security and compliance documentation
• Advanced threat detection with AI
• Detailed audit trails for investigations

Cons:

• Expensive for small teams
• Very invasive monitoring can hurt employee morale
• Steeper learning curve than simpler tools

Best for: Companies handling sensitive data, financial services, or organizations with strict compliance requirements who need detailed security monitoring and insider threat prevention.

7. Clockify: best for visual time tracking

Clockify offers unlimited users on its free plan with calendar-based time tracking and project management features. Great for teams focused on time allocation over surveillance.

Top features:

• Visual calendar tracking: See time entries displayed on an intuitive calendar interface
• Project and task tracking: Break down time by projects, clients, and specific tasks
• Manual and automatic time entry: Choose timer-based tracking or add time manually
• Timesheet approvals: Managers can review and approve time entries before payroll
• Budget tracking: Set project budgets and get alerts when approaching limits

Pricing: Free plan with unlimited users; paid plans start at $3.99/user/month

Pros:

• Free forever plan with generous features
• Simple, clean interface
• Great for budget-conscious small businesses

Cons:

• Limited monitoring capabilities compared to surveillance tools
• Kiosk mode costs extra per device

Best for: Budget-conscious small businesses and freelancers who need basic time tracking and project management without employee monitoring features.

8. Insightful: best for privacy-friendly workforce analytics

Insightful monitors productivity through app and website tracking without keystroke logging or invasive surveillance methods. Balances oversight with employee privacy.

Top features:

• App and website monitoring: Tracks which tools and sites employees use without recording keystrokes
• Automatic time tracking: Logs work hours based on computer activity
• Productivity categorization: Labels activities as productive, unproductive, or neutral
• Real-time dashboards: Monitor team activity across locations from one interface
• Attendance tracking: Automatically records when employees start and stop work

Pricing: Starts at $6.40/user/month with a 7-day free trial

Pros:

• Privacy-focused approach without keystroke logging
• Affordable pricing for workforce analytics
• Clean, intuitive interface

Cons:

• Fewer integrations than competitors
• Some advanced features require higher-tier plans

Best for: Remote and hybrid teams who need productivity visibility without invasive monitoring that damages employee trust.

Key features to look for in employee monitoring software

Time tracking with location verification

GPS tracking and photo verification stop buddy punching and confirm your team showed up where they're supposed to be. No more "I forgot to clock in" excuses eating into payroll accuracy.

Tools with this: Homebase, Hubstaff, Buddy Punch

Activity and productivity monitoring

See which apps and websites your team uses during work hours. Good for managing remote teams when you need visibility into how time gets spent.

Tools with this: Time Doctor, Hubstaff, ActivTrak

Screenshot and screen recording

Visual proof of what employees work on throughout the day. Useful for remote contractors or billable hours, but can damage trust if overused.

Tools with this: Monitask, Time Doctor, Hubstaff

Compliance and break tracking

Avoid labor violations without becoming the break police. Get alerts before employees hit overtime or miss required breaks.

Tools with this: Homebase, Time Doctor

Payroll and scheduling integration

Hours flow straight to payroll with one click. No manual entry, no math mistakes, no Sunday night spreadsheet panic.

Tools with this: Homebase, Clockify, Hubstaff

Privacy and transparency controls

Heavy surveillance kills morale. Look for tools that let you adjust monitoring intensity and give employees visibility into what's tracked.

Tools with this: Insightful, ActivTrak, Homebase

How to choose the best employee monitoring software for your small business

Match the monitoring level to what you actually need to track. Here's a simple framework.

Step 1: Define what you need to monitor

Ask yourself what problem you're solving. Do you need to verify hourly employees showed up for their shifts? Track billable hours for client projects? Prevent data breaches and insider threats? Time tracking solves the first problem. Activity monitoring handles the second. Full surveillance tackles the third.

Step 2: Consider your team type and work style

Hourly teams working shifts need time and location verification, not productivity scores. Remote knowledge workers benefit from app and website tracking to manage distributed projects. Field workers need GPS and mobile clock-in options. Match the tool to how your team actually works.

Step 3: Factor in trust and transparency

Heavy surveillance damages morale and makes good employees leave. If you're a small business where you know your team personally, trust-based monitoring (time tracking with GPS) works better than screenshot capture and keystroke logging. Save the invasive stuff for high-security environments that actually need it.

Step 4: Check integration needs

If you already use scheduling or payroll software, look for monitoring tools that connect with your existing systems. Moving data manually between apps wastes time and creates errors. Tools like Homebase combine scheduling, time tracking, and payroll in one place so everything syncs automatically.

FAQs Best employee monitoring software

Is employee monitoring legal?

Yes, employee monitoring is legal in most situations as long as you follow state and federal guidelines. You typically need to inform employees that monitoring is happening and get their consent, usually through signed policies or acknowledgment forms. Some states have stricter privacy laws that limit what you can monitor, especially on personal devices or during breaks. Check your local labor laws and consider consulting an employment attorney to stay compliant.

Does Homebase track mouse activity or take screenshots?

No. Homebase doesn't capture screenshots, log keystrokes, or monitor mouse movements. It tracks when employees clock in and out, verifies their location with GPS, and calculates hours worked. You get accountability through time and location verification, not invasive computer surveillance. This approach keeps your team focused on their work without feeling like Big Brother is watching.

How much does employee monitoring software cost?

Prices range from free to $15+ per user monthly depending on features. Basic time tracking tools like Homebase and Clockify offer free plans, while activity monitoring tools like Hubstaff and Time Doctor cost $5-$10 per user monthly. Full surveillance software like Teramind starts around $12 per user monthly and can go much higher for enterprise features. Most tools offer free trials so you can test before committing.

The best employee monitoring software for your small business

Employee monitoring isn't one-size-fits-all. Hourly teams need time and location verification, not screenshots of every screen. Remote teams need productivity insights without micromanagement. High-security companies need full surveillance to protect data.

For most small businesses with hourly workers, Homebase delivers what you actually need. Track time, verify locations with GPS, stay compliant with labor laws, and run payroll without spreadsheets. No invasive surveillance features that kill morale.

Try Homebase free. No credit card required, no screenshots taken, no headaches managing schedules and time cards across multiple locations.