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With the explosion of SaaS tools, managing a company's credentials has become a massive liability. In fact, the latest Verizon Data Breach Investigations Report highlights that the human element—specifically the use of stolen credentials—remains a primary driver of data breaches. It is a stark reminder that without the right tools, password security is often your organization’s most vulnerable point.
However, solving this problem isn't just about locking things down. It's also about enabling your team to work securely without friction. A robust business password manager does exactly that by combining state-of-the-art encryption with essential features like access controls and credential sharing. But with a market flooded with options, how do you distinguish a basic tool from a dedicated enterprise password manager? In this guide, we’ll break down exactly what features matter most to help you make the right choice for your business.
What to look for in a password manager for business
Choosing a password manager for personal use is one thing, but finding one that suits an entire organization is a whole different ball game. This is mostly because, when you're deciding on a personal password manager, you're looking at the things that are important to you personally. However, when you have to make a decision about the best business password manager, you have to look at it all from a different perspective.
When opting for a password management solution for business, you need to consider the needs and preferences of your team, as well as the peculiarities of your business. One option might be naturally more suited to your set of needs.
Here are a few pointers that will help you make the right choice for a business password manager.
Vendor's credibility
Check the credibility of the vendor providing the company password manager solution. Learn as much as possible about their privacy policies and whether the vendor uses appropriate security measures to properly protect your data. Check their track record of data leaks and breaches and whether the solution's security has been independently audited by a third party. Also, ask where they store data and whether they own their servers or use third-party ones. If they run a rented data center and others have access to it, it could make your information more vulnerable than you'd want it to be.
Security features
Password management is fundamentally about security. It is, first and foremost, a tool that will be tasked with protecting some of your most sensitive business data. So, before you opt for a business password manager that offers the best deal, take a minute and look into what you're getting. Fortunately, the majority of business-oriented password managers provide advanced encryption. You should accept no less than end-to-end encryption as it's the only way to ensure your data's absolute security. Another security layer that you should look for in a business password manager is Multi-Factor Authentication (MFA). But remember that the offered MFA options need to suit your users and your organization's technology.
Who says business security has to be hard?
Protect your company from cyber threats without sacrificing convenience
Cross-platform compatibility
In a business setting, the password manager's cross-platform compatibility could make or break the deal. Take into account all the technology that your company uses to see whether the password management solution is compatible with most if not all the devices. Whether it is Windows, macOS, Linux, or any mobile device, a password manager in 2021 should be fully compatible with all of them. Reputable password managers usually offer corporate password management solutions with automatic sync features, which allow for a quicker, easier, and safer access to sensitive data.
User friendliness
There's only so much a password manager can do if you and your team can't use it effectively. If possible, get a trial version of the password manager you're considering so you and your team could check whether it's a fit. A good password manager for business should have an intuitive UI that enables users to use it efficiently and without distractions. A business solution should also include an Admin Panel, which should be a single place for solution admins or owners to easily and effectively manage members of the organization.
Customer Support
The importance of good customer support is often underrated. But, if something goes wrong, all your accounts could be at risk, and that's when you need to be sure you can rely on customer support to provide quick, clear, and successful troubleshooting.
Top providers often include detailed help centers along with 24/7 customer support, and some even provide a dedicated case manager.
Additional features and tools
Many reputable vendors of password managers offer a whole set of additional tools for their business clientele. While additional features and tools can make your life easier, be sure not to concentrate entirely on them. Primarily, they need to be practical for your cause. Tools such as Data Breach Scanner or Password Health can be of tremendous help. A Security Dashboard allows solution admins to be aware of any critical situations within the organization that have to do with passwords.
Who says business security has to be hard?
Protect your company from cyber threats without sacrificing convenience
Administrative control and visibility
Effective password security means more than providing tools for your employees. It also means giving IT administrators the oversight they need to protect your organization. A good business password manager allows you to monitor usage, enforce security policies, and maintain strict access management without creating friction for end-users. When evaluating a solution, look for features that provide a clear view of your security posture while simplifying the complex daily tasks of administration:
Activity logs: such logs provide a transparent record of actions taken within the vault with timestamps. For example, who shared what, who accessed specific credentials or deleted an item. This level of visibility is crucial for identifying potential risks early on and for conducting internal audits.
Role-based access control (RBAC): Security best practices rely on the principle of least privilege—giving users only the access they absolutely need based on their job-related roles within an organization.
Compliance standards: Whether you operate in healthcare, finance, or tech, your tools must help with your regulatory obligations. A credible solution should support compliance with major frameworks like GDPR, HIPAA, and SOC 2. This ensures that the platform adheres to strict privacy and security protocols, helping you meet legal requirements and avoid costly penalties.
Streamlined onboarding and secure offboarding: In a fast-paced business, employees come and go. Your security tool should integrate with identity providers to automate account provisioning, making onboarding instant. More importantly, it must handle offboarding securely. Look for features that allow you to instantly revoke access and transfer business-related credentials to a manager or another employee, ensuring that sensitive data never leaves the company when an employee does.
Bottom line
There are more than a few password managers out there, and choosing one that fits your business can be tricky. The key is to take your time and avoid the mistake of going for the cheapest option on the market. There's a saying – if you get a product for free, you're the product.
See if there is an easy way to scale the solution as your business grows. Learn whether you're in full control of the solution and whether it's you who can add, remove, or terminate members' licenses. Choosing a password manager for business can also be a great way to take a different look at your company. Remember — a password manager doesn't just make things easier for your employees but also keeps your business information secure from prying eyes.
Interested in NordPass? See what it can do for your business and start a 14-day free trial today.