ChatGPT SearchSep 22, 2026
The safest approach is not to hand employees a list of shared passwords. Instead, build onboarding/offboarding around a centralized identity provider (IdP) + SSO + MFA + role-based access, with a business password manager only for systems that cannot use SSO.
NIST and CISA both emphasize centralized identity/access management, least privilege, MFA, password managers, and explicit account lifecycle controls.
Recommended setup
1. Establish one source of truth for employees
Use your HR system as the trigger:
HR creates employee → identity account is provisioned → role determines access → employee leaves → access is automatically revoked.
For example:
- HR records:
Jane Smith — Marketing Manager - Identity system creates Jane's corporate account.
- Her Marketing role automatically grants the appropriate groups/apps.
- Her manager approves any exceptional access.
- When HR marks her terminated, the identity workflow disables the account and removes access.
NIST describes essentially this model: HR events trigger creation, modification, or destruction of credentials and access rights.
2. Prefer SSO over distributing passwords
For applications that support it:
Employee → SSO → MFA → application
Rather than:
Employee → separate username/password → every application
Centralized SSO makes provisioning and revocation substantially easier and gives you a single place to enforce authentication policies. CISA specifically recommends integrating MFA into an enterprise SSO solution where possible.
3. Use role-based access
Define roles such as:
- Finance
- Engineering
- Sales
- Marketing
- IT administrator
- Contractor
Then define exactly which applications and privileges each role receives.
Use least privilege: employees should receive only the access necessary for their assigned work, with privileges periodically reviewed and removed when no longer needed.
Avoid manually deciding every application for every employee unless there's a genuine exception.
4. Put unavoidable shared credentials in a business password manager
Some services won't support SSO, and some organizations have shared operational accounts. Put those credentials in a company password manager with organizational vaults/groups, rather than sending passwords through email, Slack, spreadsheets, or documents.
For example:
Company Password Manager
│
├── Marketing
│ ├── Advertising platform
│ └── Social media
│
├── Finance
│ ├── Billing system
│ └── Banking portal
│
├── IT
│ ├── Infrastructure
│ └── Vendor portals
│
└── Emergency / Break-glassGive employees access to the vault, not a permanent copy of the password. Ideally the password manager handles sharing, auditing, access removal, and credential rotation.
NIST recognizes password managers as a way to generate unique credentials and securely store them, while CISA recommends organizational password managers and MFA.
5. Require strong MFA
Require MFA for the identity provider, password manager, email, VPN, administrative accounts, and sensitive applications.
For particularly important accounts, prefer phishing-resistant MFA, such as FIDO/WebAuthn security keys. CISA specifically recommends phishing-resistant MFA and identifies security keys as a strong option.
Onboarding checklist
Before the employee's first day:
- HR creates the employee record.
- IT/identity system creates their account.
- Assign the appropriate role/group.
- Provision their laptop/device.
- Enroll their MFA/security key.
- Provision SSO applications.
- Add them to appropriate password-manager vaults.
- Obtain manager approval for exceptional/sensitive access.
- Verify that they cannot access anything outside their role.
- Record the provisioning event in your audit logs.
Give the employee their own credentials—never another employee's credentials.
Offboarding checklist
For a normal departure, have a predefined workflow that immediately:
- Disables the employee's identity/SSO account.
- Revokes active sessions and tokens.
- Removes group memberships.
- Removes password-manager vault access.
- Disables VPN/remote access.
- Revokes MFA authenticators/security keys.
- Transfers ownership of required files, email, repositories, calendars, etc.
- Removes access to SaaS applications.
- Collects company devices and access cards.
- Reviews shared credentials the employee could access.
- Rotates particularly sensitive shared credentials if necessary.
- Preserves required audit/legal records.
NIST specifically calls for disabling/removing accounts and authorizations and destroying or invalidating associated credentials when an employee is terminated.
For involuntary termination or suspected compromise, make the identity disablement step essentially immediate rather than waiting for an end-of-day checklist.
The key distinction: individual vs. shared accounts
I'd structure your policy around this rule:
Every person gets an individual identity. Shared credentials are the exception, not the norm. If five people need access to a service, don't give five people the same password if the service supports individual accounts. If it doesn't, put the shared credential in the password manager and control access to the vault.
Also maintain an inventory of service accounts, API keys, SSH keys, certificates, recovery codes, and other non-human credentials. Employee offboarding shouldn't accidentally leave behind a credential that the employee created.
A good architecture
HR SYSTEM
│
hire / transfer / leave
│
▼
IDENTITY PROVIDER
(groups / roles)
│
┌──────────┴──────────┐
▼ ▼
SSO + MFA Device Management
│
┌────────┼─────────┐
▼ ▼ ▼
Email SaaS Internal Apps
│
│ exceptions
▼
PASSWORD MANAGER
┌──────┼──────┐
▼ ▼ ▼
Finance IT MarketingThe important part is that offboarding happens upstream. You don't want an IT employee manually remembering to deactivate 30 applications. One authoritative identity event should propagate through the environment wherever technically possible.
One additional control I'd strongly recommend
Run a quarterly access review with managers: export each person's applications, groups, privileged roles, and password-manager vaults, and have the responsible manager confirm that each is still necessary. NIST's least-privilege guidance specifically calls for reviewing privileges and removing/reassigning them when appropriate.
If you tell me roughly how many employees you have and what systems you use (e.g. Microsoft 365/Google Workspace, Slack, GitHub, AWS, QuickBooks, etc.), I can lay out a concrete onboarding/offboarding architecture and checklist for your environment.
Sources8
- cisa.govIdentity and Access Management: Recommended Best Practices for Administrators
- csrc.nist.ripProtecting Controlled Unclassified Information in Nonfederal Systems and Organizations
- cisa.govRequire Multifactor Authentication | CISA
- nccoe.nist.govIdentity and Access Management NIST SP 1800-2
- pages.nist.govNIST SP 800-63 Digital Identity Guidelines-FAQ
- cisa.govFour Cybersecurity Essentials for SLTTs | CISA