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Employee Access Resource

Small Business Password Policy Template

A password policy does not need to be complicated. It should clearly explain how employees create, store, share, and protect business passwords.

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Why this matters

Without a password policy, employees make their own choices. Some may reuse passwords, save them in browsers, share them through text messages, or keep access after leaving.

Use this resource when

  • Your business does not have a password policy.
  • Employees share passwords informally.
  • You are implementing a password manager.
  • You want simple rules for Multi-Factor Authentication (MFA).

What to review

  • Password manager requirements.
  • Multi-Factor Authentication (MFA) requirements.
  • Rules for shared accounts.
  • Administrator password handling.
  • Password reset requests.
  • Offboarding and vault removal.
Step by step

Practical checklist

  1. Write a short policy employees can understand.
  2. Require unique passwords for business systems.
  3. Use a business password manager for approved storage.
  4. Require Multi-Factor Authentication (MFA) for key systems.
  5. Limit shared passwords and document exceptions.
  6. Add password access removal to offboarding.
Avoid these issues

Common mistakes

  • Creating a policy no one understands.
  • Allowing password sharing through email or text.
  • Not covering shared accounts.
  • Ignoring administrator passwords.
  • Not updating the policy after new tools are added.

Need help turning this into a working process?

J3 Systems Group can help create a practical password policy and implement safer password storage and access practices.

Schedule a consultation

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