8 Important Benefits of Using a Business Password Manager

Did you know that approximately 42% of organizations rely on sticky notes to manage passwords?

That’s not exactly a best practice! It illustrates the types of issues that companies have when it comes to password security. The fact is that there are so many passwords that employees have to use on a weekly basis, that trying to remember strong passwords for all those accounts is just not possible.

Yet a password is often the only thing keeping hackers out of things like your Office 365 account, cloud file storage, or network settings.

Issues that companies face with password security are seen in these statistics from The 2020 State of Password and Authentication Security Behaviors Report by Yubico:

  • 39% of people reuse passwords over several accounts
  • 51% of employees share passwords with their colleagues
  • 54% of employees feel that using two-factor authentication disrupts their workflow

When it comes to IT security, credential protection is one of the most important safeguards to ensuring you don’t suffer a data breach.

80% of data breaches involve weak or stolen passwords.

One way that many businesses solve the problem with passwords is to use a business password manager.

How Does a Password Manager Work? 

Password managers are applications that act as vaults for user passwords. They are offered for both personal and business use. Companies will want to look at password manager accounts for business because they come with important administrative features that you don’t have with a personal account.

You subscribe to a password manager, similar to other cloud solutions. Once subscribed, your employees will download an application that can be used on desktop or mobile. Most password managers also offer a browser extension.

The password manager remembers all employee passwords for them while also ensuring they’re strong, unique passwords, which are harder to hack.

Here are several of the benefits of using a business password manager.

Employees Only Need to Remember One Password

When you use a password manager, all you need to do is remember a single master password to access all others in the manager. This makes it easier for employees to use a strong password, because they only need to remember one.

Doesn’t Disrupt Workflow

The complaint that many people have with receiving a verification code through multi-factor authentication for login is that it takes too long considering all the logins they do daily.

Password managers are faster when it comes to logging in because they’ll autofill your login credentials for you as soon as you enter the master password. The autofill process is similar to when you save passwords in a browser, but much more secure.

Secure Encryption

Companies that provide password managers implement AES-256 bit encryption along with other safeguards such as “salted hashes” to ensure the login credentials stored in the manager are secure.

They use locally generated unique encryption keys, which means your passwords are encrypted and decrypted at the device level, not within a cloud application.

Companies that want to implement additional security can use multi-factor authentication with a password manager.

Never Lose Company Passwords

Have you ever had a key employee out sick or leave abruptly and been locked out of an important company account that only that person had the password for?

Using a business password manager solves that problem. All employee credentials for business accounts can be accessed if needed by your account administrator.

Ensure Everyone is Using Strong, Unique Passwords

Password managers will suggest strong passwords when you’re adding a new account or changing the password on an existing one. This means that you can ensure all employees are using unique passwords that are strong and difficult to hack for every login they use, reducing the risk of a compromised account.

Use to Securely Store Other Digital Records

A business password manager allows you to store other things beyond just username and password combinations.

You can securely store things like:

  • Company credit card numbers
  • Employee IDs
  • Software license information
  • FTP and website access information

Track Site Logins & Security

You gain important insights into your cloud account security when using a password manager.

Reporting includes information on password strength across your organization, how many logins are being done each day, and which invited users are yet to activate their password manager account.

Improves Productivity

Every year, over 10 hours per employee are wasted just going through the process to recover a lost password. This happens often when someone has to input a password that’s not used on a daily basis.

Using a password manager can eliminate this drag on productivity because it remembers all user passwords and makes them easily accessible whenever they’re needed.

Get Your Free 21-Point Cybersecurity Audit 

How is the password security at your Southern California business? Neuron Computers will help you identify any weak areas in your network security, including passwords and other critical components.

Contact us today to apply for a free cybersecurity audit. Call 1-833-4-NEURON or reach out online.