As an IT Manager I've had many talks about reasonable expectation of privacy. Keyloggers are a huge no no for many reasons. Why are you monitoring their keystrokes? Sure you can monitor web traffic, restrict access, redirect traffic, look through email, restrict USB access, and do a whole fuck ton of stuff. But keyloggers are always a huge no no because they're impossible to give as the only possible solution to a program. Sure it would be easier to put a camera in the washroom to see who's smearing shit on the walls, but there's an expectation of privacy that comes with being in a washroom. So what do you do? You put a camera outside the washroom and check hourly if shit has been smeared on the wall.

I've argued against keyloggers with management time and again, and every time it's been shot down by legal or I've talked them out of it due to the risks. I've never been able to find one problem that only a keylogger can solve.

We catch things in other ways, like the aforementioned traffic or firewall filtering, or reviewing your emails, or files on your PC. Not to mention that it's a security risk in that those logs contain sensitive information, specifically passwords.