American Companies Increase use of Electronic Monitoring:

AMA Calls on Employers to Raise Level of Dialogue with Employees

April 12, 2000 —The American Management Association (AMA) today released results of its Annual Electronic Monitoring and Surveillance Survey. Nearly three-quarters (73.5%) of major U.S. firms report that they record and review their employees' communications and activities on the job, including their phone calls, e-mail, Internet connections and computer files. This figure has doubled since 1997, driven by a dramatic increase in employers' interest in what employees are doing on their computers. One out of four companies say they have dismissed employees for misuse of telecommunications equipment.

"Employers have legitimate concerns regarding performance and liability. Likewise, employees have legitimate concerns regarding privacy," said Ellen Bayer, AMA's global practice leader on human resources issues. "To ensure effective and fair monitoring policies, AMA strongly recommends that companies create clearly stated and broadly understood policies on this subject," added Bayer.

The growth of electronic monitoring has been explosive over the past two years. Fifty-four percent of employers report monitoring their employees' Internet connections. Thirty-eight percent review e-mail messages, up from 15 percent in 1997 and 31 percent review computer files, up from 14 percent in 1997. In efforts to control employee misuse or personal use of telecommunications equipment, 55 percent of respondent firms use "blocking" software to prevent telephone connections to unauthorized or inappropriate phone numbers; 29 percent block Internet connections to unauthorized or inappropriate Web sites.

"Productivity suffers when employees surf the Web on company time. Additionally, employers can face liability issues when employees access pornographic or inappropriate Web sites that may offend their colleagues," said Bayer.

The larger the company, the more likely it is to engage in monitoring and surveillance activities. Broken down by business category, respondents from the financial services sector (banks, brokerages, insurance, and real estate) lead the pack when it comes to monitoring their employees' e-mail, with 55 percent engaged in this practice, and when it comes to monitoring their employees' Internet connections, with 73 percent doing so.

"Internet monitoring is such a new area filled with so many misconceptions of what is proper, appropriate and legal, that employees and employers need to have a clear, mutual understanding of what each may and may not do, "said Bayer. To assure that shared understanding, AMA recommends that electronic monitoring policies be:

  • Clearly defined and disseminated to all employees through all communication channels, from paper to electronic media.

  • Addressed in recruitment, orientation and training programs.

  • Discussed in face-to-face meetings between managers and employees, which allow for questions to be answered and concerns aired.

  • Illustrated through specific examples of misuse, accompanied by a consistent explanation regarding application of standards.

"Managers need to fully understand all the implications of employee monitoring and should become more proactive in terms of defining the benefits, needs and objectives of any surveillance program," asserted Bayer. For complete survey results please refer to AMAŽs Web site at www.amanet.org.

The American Management Association is the world's leading membership-based management development organization. AMA offers a full range of business education and management development programs for individuals and organizations in Europe, the Americas and Asia. Through a variety of seminars and conferences, assessments and customized learning solutions, publications and on-line resources, more than 700,000 AMA members and customers a year learn superior business skills and best management practices from a faculty of top practitioners. Those interested in program information or membership can visit the AMA Web site at www.amanet.org.


American Management Association © Copyright 1997-