Why should my company use a password manager?

Password managers are becoming increasingly popular—and for good reason! Beyond the obvious cybersecurity protection, a password manager can enhance efficiency, security, and time savings in your business operations. Fairly soon, password managers will be a necessity, so it’s a good idea to get comfortable using one sooner rather than later. Here’s why:

If you find yourself using the same password for multiple accounts, a password manager can alert you that these passwords need to be changed and suggest actionable steps to improve your security posture. Most password management software do more than just store passwords; they help identify easy-to-fix security weak spots and streamline workflow efficiency across employees or teams.

Complex Password Requirements

You’ve surely noticed that internet applications, both work and personal, are increasingly requiring more complex passwords and multifactor authentication. It’s becoming harder to use the same passphrase for all account. Passwords should no longer be memorable – if they’re memorable, they’re hackable. With large-scale cybersecurity breaches becoming more common, companies are creating stricter password requirements and making it more difficult to use everyday credentials.

The core benefit of using password management software is that it provides a secure place to store complex passwords, which can be easily copied or auto-filled for convenience.

Enhanced Productivity and Efficiency

Password managers save hours of time each year that would otherwise be spent searching for and resetting passwords. It never fails that the account you desperately need access to today—right now!—is inaccessible because you can’t find the password. While it may seem like a small issue, in critical moments, password managers ensure you have access to data when you need it most.

Staff can avoid repeatedly resetting shared account passwords due to miscommunications and lost sticky notes. Once employees start storing their own passwords, those saved hours quickly add up, leading to more efficient business operations and cleaner processes. Shared credentials become more secure, easier to use, and teams save valuable time.

Compliance and Centralized Control

For businesses that need to remain compliant, password managers allow for reporting, management, and centralized control of credentials. In the event of a breach, small businesses can avoid fines or legal consequences by providing reports and proof of secure, complex credentials.  If you’re a small business looking to become compliant in a specific industry, implementing password controls is a good first step and it’s often a requirement.

Centralized control is particularly useful for managing employee departures – especially sudden or stressful ones. Most password managers allow for the transfer of passwords between user accounts or the locking of changes to prevent nefarious behavior from disgruntled employees. Some password managers prevent the export of passwords, and others offer granular access permissions so employees only have access to the credentials they need. Since each password manager's security features differ, be sure to research them thoroughly before purchasing.

Cost-Effectiveness and Scalability

An entry-level password management application is an incredibly cost-effective preventive measure against cybersecurity incidents that can cost hundreds or thousands of dollars, disrupt business operations, cause sleepless nights, and increase future insurance costs. While this may sound like an exaggeration, countless clients have urgently sought the help of IT companies after an account compromise or data breach while wishing they had implemented simple security measures sooner.

As your organization scales, business processes become more complex, and the margin for error increases. Scalable password managers allow organizations to grow while simplifying critical points in operational processes like access and security standards.