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3 min read

What is the most secure way to share passwords with employees

Breached or stolen passwords are linked to over 80% of data breaches. Hackers can get in using stolen, weak, or reused passwords.

But passwords are a part of life. Technologies like biometrics or passkeys haven’t yet replaced them. We use them for websites, apps, and more. So, companies need a secure way to share passwords with employees. As well as help them manage those passwords more effectively.

Cybersecurity threats are rampant and safeguarding sensitive information has never been more critical. Properly managing passwords securely is a top priority. At the same time, employees deal with more passwords than ever. LastPass estimates that people have an average of 191 work passwords.

Since you can’t get around passwords, how do you share them with employees safely? One solution that has gained popularity in recent years is using password managers. We believe so strongly in them that we provide one to all of our support customers at no extra cost.

Why Use a Business Password Management App?

Password managers give you a secure digital vault for safeguarding passwords. The business versions have setups for separating work and personal passwords. They also have special administrative functions so companies never lose a critical password.

Here are some of the reasons to consider using a password manager for better data security.

Centralised Password Management

A primary advantage of password managers is their ability to centralise password management. Employees can create strong, unique passwords and store them in a secure encrypted location managed by the organisation. Reducing the number of scrawled passwords left on desks and pinned to walls instantly reduces risk to the business. This centralised approach enhances security and streamlines the process of sharing passwords securely within a team.

End-to-End Encryption

Leading password managers use robust encryption techniques to protect sensitive data whether stored on a device, or in the cloud. It turns them into unreadable text when stored and transmitted which makes it nearly impossible for unauthorised users to access the information.

Encryption provides an extra layer of security to ensure that the data remains confidential even when shared with employees.

Secure Password Sharing Features

Password managers often come with secure password-sharing features. They allow administrators to share passwords with team members. And to do this without revealing the actual password.

Instead, employees can access the required credentials without seeing the characters. This ensures that employees do not have direct access to sensitive information. This feature is particularly useful when onboarding new team members. As well as when collaborating on projects that require access to specific accounts.

Multi-Factor Authentication (MFA)

Many password managers support multi-factor authentication. This adds an extra and important layer of security. MFA requires two or more forms of verification before accessing an account.

MFA significantly reduces the risk of unauthorised access. According to Microsoft, it lowers the risk by 99.9%. This makes it an essential feature for businesses looking to enhance password security. Especially when sharing sensitive information with employees.

Password Generation and Complexity

Password managers often come with built-in password generators. They create strong, complex passwords that are difficult to crack which means that businesses can be confident that their staff are using strong, unique passwords for each account.

This eliminates the common practice of using weak passwords. As well as reusing passwords across many accounts. This feature mitigates the risk of security breaches.

Audit Trails and Activity Monitoring

Monitoring is a valuable feature offered by many password managers. It provides the ability to track user activity and access history. Admins can track who accessed which passwords and when. This provides transparency and accountability within the organisation.

This audit trail helps in identifying any suspicious activities. It also allows companies to take action if an employee has done something that they shouldn’t have done.

Secure Sharing with Third Parties

Password managers offer secure methods for sharing credentials with third-party collaborators or contractors. Companies can grant these external parties limited access to specific passwords. They can do this without compromising security.

This functionality is particularly useful for businesses. Especially those working with external agencies or freelancers on various projects. It keeps control of the passwords within the organisation.


A final, but significant benefit of a password manager is that you never have to worry about losing a password when the only employee who knows it leaves!

Ready to Try a Password Manager at Your Office?

Password managers offer a secure and convenient way to share passwords with employees. They’re an indispensable tool for businesses aiming to enhance their cybersecurity posture.

By adopting password managers, businesses can protect their sensitive information. They also promote a culture of security awareness among employees. Investing in password management solutions is a proactive step toward safeguarding valuable data.

Need help securing a password manager? Get in touch today to schedule a chat.

Article used with permission from The Technology Press.

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