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employee offboarding risks

Employee offboarding is a critical moment for both security and human resources. When an employee leaves—whether by resignation or termination—it can pose potential risks  that, if not properly managed, can lead to data breaches, unauthorized access, or the loss of sensitive information. Along with handling the personal and logistical elements of an employee’s departure, HR and IT must work together to protect the company’s data and ensure compliance with internal policies. The steps you take during offboarding can make all the difference in maintaining security and avoiding costly vulnerabilities.

Every step in the offboarding journey is crucial in safeguarding your business from exposure to insider threats or external cyberattacks. As we move into 2025, cybercriminals are becoming more sophisticated, and insider threats remain one of the top security concerns for businesses of all sizes. When an employee exits your organization, the steps you take in those critical moments can mean the difference between airtight security and a potential disaster.

Here’s a practical, step-by-step guide to managing security when an employee leaves, helping your business stay protected while ensuring a smooth offboarding process.

1. Revoke System Access Immediately

As soon as an employee’s departure is confirmed, revoking their access to all company systems is essential. This isn’t just about their company email account; access should be disabled for every platform the employee had contact with, from internal systems to external tools like cloud storage, VPNs, and specialized software.

Steps to Take:

  • Deactivate user accounts on internal systems and third-party applications.
  • Disable multi-factor authentication (MFA) tokens associated with the employee’s accounts.
  • Block physical access by deactivating office entry cards and security badges.

While other offboarding tasks can be completed later, this action must be prioritized and executed immediately to prevent any potential unauthorized access or data breaches.

2. Recover Company Devices and Inventory

Company-owned devices like laptops, phones, and external storage devices can house sensitive information. A thorough process for recovering these devices is key to protecting company data. Beyond the obvious items, don’t forget about less obvious inventory like USB drives, security tokens, or even printed documents.

Steps to Take:

  • Request the return of all company-owned devices.
  • Conduct a detailed audit of the returned devices to ensure all company data is accounted for.
  • Wipe the devices clean of sensitive information after data has been securely archived.

3. Conduct a Data Access Review

Before an employee leaves, it’s crucial to review their activity across company systems. By conducting a final data access audit, you can detect any signs of unusual activity, such as unauthorized data transfers or downloads. This helps ensure that no sensitive data has been mishandled.

Steps to Take:

  • Review access logs for critical systems, such as CRM platforms, financial systems, and cloud storage.
  • Check for any unusual data exports or transfers during the employee’s final days.
  • Investigate any red flags immediately to ensure no company data has been compromised.

4. Change Shared Passwords

Shared passwords can be a significant vulnerability, especially if multiple employees—including the one who’s leaving—have access to the same credentials. Changing these passwords is a vital step in securing your systems after an employee’s departure.

Steps to Take:

  • Update passwords for all shared accounts, especially for critical systems like finance or project management tools.
  • Implement a password management system that allows you to manage access centrally and update credentials as needed.

5. Notify Key Stakeholders

The offboarding process should involve all relevant departments, including HR, IT, and any department heads that worked closely with the departing employee. In some cases, you may also need to notify key clients or vendors if the employee had direct access to sensitive partnerships or information.

Steps to Take:

  • Ensure the IT team is notified immediately to revoke access and secure systems.
  • Inform HR and management of the security steps taken and ensure all offboarding tasks are completed.
  • Notify key clients or vendors if necessary to ensure continuity and protect sensitive relationships.

6. Exit Interview: An Opportunity for Security Assurance

An exit interview is not only an opportunity to gather feedback but also to ensure that the departing employee no longer has access to any company information. This is the time to ask about work-related passwords, confidential files, and any proprietary information the employee may have handled.

Steps to Take:

  • Ask the employee about any passwords or data they had access to, ensuring all vulnerabilities are closed.
  • Check for any use of personal devices for work and ensure all company data has been removed.
  • Reinforce non-disclosure agreements (NDAs), emphasizing the legal obligation to maintain confidentiality after departure.

7. Monitor Systems Post-Departure

Even after access has been revoked, it’s essential to continue monitoring your systems for any unusual activity. The weeks following an employee’s exit can still present risks, especially if they had deep access to sensitive data or systems.

Steps to Take:

  • Set up alerts for any attempts to access deactivated accounts or protected data.
  • Regularly review system logs for unusual activity in the weeks following the employee’s departure.
  • Consider ongoing monitoring of critical systems to ensure that no unauthorized access occurs.

8. Update and Strengthen Your Offboarding Policy

In today’s evolving environment, having a strong and up-to-date offboarding policy is non-negotiable. Regularly review and strengthen your policy to address new security challenges, particularly for employees working remotely or with access to sensitive company data.

Steps to Take:

  • Update your offboarding policy annually, incorporating the latest security practices and technology tools.
  • Provide training to both HR and IT teams on the importance of securing data and systems during the offboarding process.
  • Automate access revocation using IT management tools that streamline the offboarding process.

9. Special Consideration for Notetakers and Confidential Information

Employees who had access to sensitive meeting notes, intellectual property, or confidential business information pose a unique risk when they leave the company. It’s essential to ensure that any notes—whether digital or physical—are returned, securely archived, or destroyed.

Steps to Take:

  • Collect and archive any meeting notes or sensitive documents the employee had access to.
  • Ensure shared documents such as project plans, meeting minutes, or strategic notes are transferred to the appropriate teams.
  • Verify the removal of access to any digital collaboration tools where notes were stored (e.g., Google Drive, Microsoft OneNote, etc.).

Protect Your Business with Systech MSP

Securing your business during the offboarding process is vital to protecting your company’s data, reputation, and relationships. By following these best practices, you can mitigate the risks associated with employee departures and ensure a smooth transition for both HR and IT.

Looking for expert IT solutions to protect your business? At Systech MSP, we specialize in proactive IT security services that safeguard your company’s sensitive data during every stage of the employee lifecycle. Contact us today to learn more about how we can support your business.

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