The Impact of Digital Workplace Surveillance on Employee Productivity and Job Satisfaction: Exploring the Mediating Role of Trust

Abstract

This study examined the dual impact of digital workplace surveillance (DWS) on employee productivity (EP) and job satisfaction (JS), through the mediating role of trust (TR). This study aims to reconcile these competing perspectives by investigating how trust mediates the relationship between DWS and key employee outcomes. A quantitative research design was employed using Partial Least Squares, Structural Equation Modeling (PLS-SEM) to analyze data collected from 350 employees in the tech-based service sectors where DWS practices are prevalent. The conceptual framework integrates Social Exchange Theory, Affective Events Theory, and Task-Technology Fit Theory to explain the hypothesized relationships. The results reveal a paradox where DWS directly improves shortterm productivity (β = 0.703, p < 0.001), it simultaneously impacts trust (β = 0.666, p < 0.001), which has significant positive effects on both productivity (β = 0.279, p < 0.001) and job satisfaction (β = 0.347, p < 0.001). The stronger mediation of trust on job satisfaction and productivity suggests affective primacy of trust, consistent with Affective Events Theory. Organizations must balance the benefits of surveillance with the need to preserve trust. To minimize the damaging effects, the study recommends ensuring transparent communication, employee participation in designing policies, and careful monitoring of the situation. This study overcomes the “productivity paradox” using a dual-path model. It establishes trust as a vital mediator, especially for JS, and integrates DWS effects. Thus, policymakers may gain important insights for improving the manipulation process