Another +1 for Fluffy, the power of added feathers plus.
A +1 for intermediate security, more intrusive than workplace, less intrusive than voyeurism. Supporting something along the lines of what Knit tie described.
Also, have we given any thought as to who/how/what will be monitoring all this security footage, script, and audio? One camera taping 24 hours a day takes at least 4 hours, every day, to watch at 6x speed.... normal minds miss lots of stuff at that speed. And our lair is huge, we're talking dozens of cameras, plus whatever audio and written/coded/whatever transcript.
Some of our minions have at least a little psionic ability. Are we trying to monitor that as well some how? Underwater creatures often communicate through underwater sounds, are we monitoring for that too?
And for any and all yesses... again, how to review all this data?
I myself lean towards collecting the information, then mostly ignoring it, unless and until we have reason to double check, or have anyone else double check. Have the information stored in some very hard to alter or destroyed format, and make it easy for everyone in the fortress to review. Let it be known that privacy is for heroes, and there's nothing our forces should want to do that has to be kept hidden - though we and all are aware of 'personal happenings', from Lord Gamington's lance to Cruelean's pet rock, such things are benignly permitted, though observed, because there's nothing these loyal people would consider doing which would be 'wrong'.
Someone doesn't want to see something? Stop watching it. Someone sees something which appears disloyal? Talk about it and be rewarded. Fail to talk about it, and possibly be punished - after all, observing it in the tapes or directly will also be recorded, right? So an interested advisor is likely to double check what footage was viewed and such.
Just make it part of life and part of entertainment, so there's nothing to worry about for anyone, and a lot of work still gets done. The sheer scope of surveillance and how many minds 'monitor' it will help reduce the chances of someone successfully cheating the system a great deal.