Industry 411

Amazon’s $35M Fine: A Cautionary Tale of Employee Surveillance and the Quest for Balance

A woman looking stressed and overwhelmed as her bosses watch her, representing the negative impact of imbalanced employee surveillance on mental health and well-being in the workplace.

Ever since the pandemic gave way to a rise in remote and hybrid work models, a new issue has arisen. How can employers ensure employees meet productivity levels when they are not in the office? The need to confirm that employees remain efficient while working offsite has led to an upsurge in employee monitoring software. With an overall interest in employee tracking software having jumped up 122% since 2022, it’s clear that leaders are hoping to receive some benefit from the many surveillance options available. While employee monitoring offers benefits such as measuring productivity levels, identifying performance issues, and enhancing security, there are ways that companies can take it too far.

Challenges of Excessing Monitoring

One needs to look no further than Amazon for an example of how excessive monitoring can backfire on the company. A 2023 study reveals that 41% of Amazon employees feel pressured to work faster while 52% feel burned out. Of those who worked at Amazon for over three years, 60% declared they were feeling burnt out. These extreme levels of surveillance coupled with a push for productivity can actively harm employee mental health and lead to a high-pressure environment, which isn’t sustainable for employee well-being.

Financial Repercussions

Companies can also face financial repercussions for extreme monitoring, which Amazon recently experienced as well. According to the Commission Nationale Informatique & Libertés (CNIL), the French data protection agency, Amazon’s French warehouse was using an “excessively intrusive system” to keep track of employees’ productivity levels and breaks. The CNIL described how this level of monitoring is dangerous, explaining how employees would potentially have to “justify each break or interruption.” Amazon was fined €32 million (approximately $35 million) and either must face the costs or use extra resources to appeal the decision.

Impact on Employee Well-Being

While Amazon’s conditions are more extreme than one would expect from a workplace that offers remote or hybrid work options, the lessons remain in how surveillance affects employee well-being. In a 2023 survey from the American Psychological Association, monitored employees were more likely to report experiencing “negative psychological outcomes” than those who were not monitored. Furthermore, 28% of monitored employees reported experiencing negative effects on their mental health while at work, and 56% felt stressed out at work. This isn’t to say that employers should never monitor employees, as companies have a right to know how their business is running. Instead, to foster a healthy work culture, employers must ensure that their employee monitoring practices are ethical.

Principles of Ethical Monitoring

Practicing ethical monitoring starts with transparency. In a survey from Gartner, only 30% of employees were comfortable with having their employers monitor their emails. However, when employers explained their reasoning, the number went up to 50%. Without an explanation, employees can assume there is no healthy level of trust in the workplace. Employers must also be mindful of how surveillance affects their employees’ privacy. If employers can fully disclose how and where surveillance data is stored and for how long, employees can feel more comfortable about being monitored while working from home. Above all else, employers must remember that employees are people. Someone who is usually a high-performing employee will not always be at their maximum productivity levels, especially as life can be unpredictable. If concerned about productivity levels, employers can always encourage employees to be open about their situation, and then they can work together to find a solution that will benefit everyone.

While employers can reap many tracking benefits from employee surveillance tools, they must remain aware of how these tools can affect employees. If employers monitor their workers in a way that they feel there is a lack of trust and privacy, then both employee well-being and the company’s overall workplace culture could be on the line. Companies have a right to track performance metrics, and ethical surveillance practices can allow that to exist alongside employee wellness.