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What Is the Most Secure Way to Share Passwords with Employees?

Passwords are part of working life, and since you can't get around them, how do you safely share them with your team?  One solution that has gained popularity in recent years is using password managers. 

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 reasons to consider getting a password manager for better data security.

Centralised Password Management

A primary advantage of password managers is their ability to centralise password management. They keep employees from using weak, repetitive passwords and storing them in vulnerable places. Instead, a password manager stores all passwords in an encrypted vault, and centralising enhances security. It also 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. End-to-end encryption scrambles passwords, turning them into unreadable text when stored and transmitted, making it nearly impossible for unauthorised users to access the information.

When sharing passwords with employees, encryption provides an extra layer of security. It helps ensure that the data remains confidential even during transmission.

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, which ensures that employees do not have direct access to sensitive information. This feature is handy when onboarding new team members and collaborating on projects that require access to specific accounts.

Multi-Factor Authentication (MFA)

Many password managers support multi-factor authentication, which adds an extra and vital 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%, making 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. When sharing passwords with employees, employers can use these generated passwords. They ensure that employees use strong, unique passwords for each account, eliminating the common practice of using weak passwords and reusing passwords across many accounts, mitigating the risk of security breaches.

Audit Trails and Activity Monitoring

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

This audit trail helps identify any suspicious activities and allows companies to take prompt action to ensure the security of the shared passwords.

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 passwords without compromising security.

This functionality benefits businesses, especially those working with external agencies or freelancers on various projects. It keeps control of the passwords within the organisation. 

You also 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 and 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? Give us a call today to schedule a chat.

Article used with permission from The Technology Press.