69% of US firms track employee attendance in 2025, up from 45% in 2024, boosting office and HR tech sectors

In the evolving landscape of US workplaces, a notable shift is underway as companies intensify efforts to monitor employee attendance. Recent surveys indicate that 69% of businesses are now actively tracking office presence, up sharply from 45% a year ago, according to data from commercial real estate firm CBRE. This trend reflects broader pressures to enforce return-to-office policies amid hybrid work models, with potential ripple effects on productivity, real estate demand, and technology investments.

The Surge in Attendance Monitoring

As hybrid work arrangements solidify post-pandemic, US employers are increasingly turning to structured systems to ensure compliance with in-office mandates. This uptick in tracking—from under half of firms last year to nearly seven in ten today—signals a strategic pivot towards reclaiming physical workspaces. CBRE’s findings highlight how organisations are responding to perceived productivity gaps in remote setups, with stricter enforcement helping many meet attendance targets. For investors, this development underscores opportunities in sectors tied to workplace management and commercial property.

Historical context shows that attendance tracking was once a niche practice, often limited to manufacturing or retail environments. However, the pandemic accelerated remote work, leading to a temporary dip in such oversight. Now, with economic recovery in full swing, businesses are recalibrating. A 2024 McKinsey study noted that over 35% of jobs could be performed remotely, yet firms are pushing back, citing collaboration benefits. This reversal is evident in the data: enforcement of attendance policies has risen to 37% of companies this year, from just 17% in 2024, per CBRE surveys.

Implications for Commercial Real Estate

The push for monitored attendance bodes well for the office real estate sector, which has grappled with high vacancy rates since 2020. With more firms mandating and tracking in-person days, demand for office space could stabilise or even grow. CBRE reports that two-thirds of surveyed companies have achieved their 2025 attendance goals through these measures, potentially reducing underutilised square footage. Investors in real estate investment trusts (REITs) focused on urban office properties may see upside, as tighter policies correlate with higher occupancy.

Yet, challenges persist. While policy requirements for office attendance have increased by 10% since early 2024, actual attendance has risen by less than 2%, according to industry analyses. This gap suggests enforcement alone may not suffice without cultural buy-in, potentially leading to tenant churn if employees resist. Analyst models from firms like JLL forecast a modest 5–7% rise in office leasing activity by end-2025, contingent on sustained tracking trends.

Technology’s Role in Tracking Evolution

Underpinning this attendance surge is a boom in specialised software and AI-driven tools. Solutions incorporating GPS, biometrics, and mobile apps are gaining traction, with providers reporting heightened demand. For instance, AI-based systems can detect patterns and prevent issues like time theft, as outlined in recent industry overviews. Paychex’s 2025 priorities report emphasises how remote-friendly features, such as automated clock-ins, are essential for managing flexible schedules.

From an investment perspective, this trend favours HR technology firms. Market sentiment, as gauged by analyst notes from Gartner, remains positive, with projected growth in the employee monitoring software segment at 15–20% annually through 2027. Credible sources like Gallup highlight declining worker engagement—down to 21% in 2025 from prior years—prompting companies to invest in tools that blend tracking with engagement metrics. Predictive analytics, for example, allow real-time trend spotting, potentially mitigating disengagement costs estimated at billions annually.

Workforce Dynamics and Productivity Trade-offs

While tracking boosts visibility, it raises questions about employee morale and retention. Surveys from Achievers indicate that personalised recognition and flexible policies are key 2025 trends for maintaining engagement. Stricter monitoring could backfire, exacerbating turnover in a tight labour market where prime-age participation has surpassed pre-pandemic levels, per historical US Bureau of Labor Statistics data from 2023.

Analyst-led forecasts suggest a balanced approach: models from Deloitte predict that firms integrating monitoring with well-being initiatives could see productivity gains of up to 10%. However, without addressing underlying issues like manager disengagement—down to 27% per Gallup—enforcement might yield diminishing returns. Investors should monitor sentiment from sources like Paychex, which notes 85% of leaders expecting revenue growth, partly tied to headcount expansions supported by better attendance data.

Broader Economic Ripples

This attendance tracking wave intersects with macroeconomic trends, including inflation control and labour market tightness. As US businesses plan for growth, with 50% eyeing full-time hires per Paychex, reliable attendance data informs resource planning and avoids overstaffing pitfalls. Emerging trends, such as AI-transformed time management, could streamline operations, per insights from ASA Team’s 2024 analysis.

For equity markets, sectors like software-as-a-service (SaaS) for HR and commercial real estate stand to benefit. A table below illustrates key statistics from recent reports:

These figures, dated as of 2025-08-20, underscore the momentum. Investors might consider diversified exposure to tech and property plays, weighing risks from potential backlash against surveillance.

Investor Considerations

• Risk Mitigation: Monitor employee sentiment indicators; declines could signal retention issues impacting firm performance.
• Opportunity Spots: HR tech stocks with AI features may outperform, per labelled models forecasting sector CAGR of 18%.
• Long-term View: If tracking normalises hybrid models, it could stabilise real estate valuations, with analyst sentiment from J.P. Morgan marked as cautiously optimistic.

In summary, the rise in attendance tracking among US businesses marks a critical juncture in workplace evolution, with tangible implications for efficiency and investment landscapes. As firms navigate this terrain, the balance between oversight and empowerment will define success.

References

• Achievers. (2025). Employee recognition trends. https://achievers.com/blog/employee-recognition-trends
• ASA Team. (2024). Automated attendance tracking: 7 ways AI is transforming employee time management. https://blog.asa.team/automated-attendance-tracking-7-ways-ai-is-transforming-employee-time-management/
• CBRE. (2025). 69% of U.S. companies now track office attendance. https://allwork.space/2025/08/69-of-u-s-companies-now-track-office-attendance/
• Credaily. (2025). Office attendance tracking on the rise in the US workplace. https://credaily.com/briefs/office-attendance-tracking-on-the-rise-in-the-us-workplace
• Gallup. (2025). Engagement and happiness at new lows. https://news.outsourceaccelerator.com/engagement-happiness-new-lows-2025
• Paychex. (2025). Latest technology to track time & attendance. https://www.paychex.com/articles/hcm/latest-technology-track-time-attendance
• Vizitor. (2025). Top employee attendance management software. https://www.vizitorapp.com/blog/top-employee-attendance-management-software-2025/
• Actiplans. (n.d.). The future of absence tracking. https://www.actiplans.com/blog/the-future-of-absence-tracking
• Apploye. (n.d.). Employee monitoring statistics. https://apploye.com/blog/employee-monitoring-statistics/
• Time Doctor. (n.d.). Employee monitoring statistics. https://www.timedoctor.com/blog/employee-monitoring-statistics/
• Allwork.Space. (2025). 69% of U.S. companies now track office attendance. https://allwork.space/2025/08/69-of-u-s-companies-now-track-office-attendance/
• Jibble. (n.d.). Attendance tracker. https://www.jibble.io/attendance-tracker
• TechForing. (n.d.). Top attendance management software. https://growth.techforing.com/resources/articles/top-attendance-management-software
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• X Accounts (various), accessed 2025: unusual_whales, zexeccoach, Geoff Wilbur, Moneywise, Market Flicker, echooagent, 1goodtern, byHeatherLong, I_Am_NickBloom, SatlokChannel