5 Data Security Policies Every Business Needs in Their Employee Handbook

By: Levi Hentges, Vice President / Development, SEAM

Over the past 20 years, businesses in the region have faced a growing challenge: keeping sensitive data secure. As technology continues to evolve, companies have had to adapt quickly, adding new devices, software, and—just as importantly—policies to ensure their teams know how to handle data safely.

It’s easy to assume things like password hygiene or email security are just common sense. But without clear guidelines in an employee handbook, misunderstandings happen—and that can put your company at risk.

Whether you’re running a small business in Sioux Falls, managing an office in Fargo, or overseeing operations in Des Moines, having these policies in place is key to protecting your business and employees.

Here are five must-have data security policies to include in your handbook.

1. Acceptable Use Policy (AUP)

An Acceptable Use Policy (AUP) lays out how employees should and shouldn’t use the company’s network and devices. It’s one of the first documents new hires should review and sign.

For example, the AUP might outline rules for limiting personal internet use at work or restricting access to certain websites. Not only does this help keep employees focused during work hours, but it also minimizes the chances of malware or viruses sneaking into your systems.

2. Password Policy

Passwords are your company’s first line of defense against hackers, so it’s important to spell out expectations clearly. A password policy should define how employees create and update passwords, with guidelines like using unique passwords that aren’t tied to personal accounts.

Regular updates and password complexity requirements can feel like a hassle, but they go a long way in protecting sensitive business data.

3. Email Policy

Email is a primary target for phishing attacks and malware, which means having a strong email policy is critical. This policy should outline what’s expected of employees when sending, receiving, and handling emails.

On top of that, consider making cybersecurity awareness training a requirement. Teaching your team how to spot suspicious emails or avoid phishing attempts is one of the best defenses your business can have.

4. Information Transfer Policy

Even with so much data being shared digitally these days, physical data transfers still happen—whether through USB drives, external hard drives, laptops, or even paper documents. An information transfer policy ensures employees know how to handle data properly and whether certain devices or documents can leave the office.

This became especially important during the pandemic when many businesses transitioned to remote work. By including clear rules in your handbook, you can avoid confusion and reduce the risk of data breaches.

5. Termination Policy

Talking about what happens when an employee leaves isn’t exactly fun, but it’s an essential part of any data security plan. Make sure your handbook outlines how sensitive or company-owned data should be handled when someone departs.

At a minimum, employees should return all devices and data—whether physical or digital—before their last day. This protects both your business and the employee, preventing potential issues down the road.

Protect Your Data, Protect Your Business

At SEAM, we understand the unique challenges businesses face across South Dakota, North Dakota, and Iowa when it comes to protecting their data. Whether you’re looking to secure your retired IT equipment or safely dispose of sensitive information, we’re here to help.

Let us handle your data destruction and IT recycling needs so you can focus on what matters most—growing your business.  Contact us today to learn more about our services.

Levi Hentges is the Vice President / Development at SEAM. He helps clients build and manage their IT Asset Disposition (ITAD) programs to comply with legal, corporate and environmental requirements surrounding their technology devices; including asset recovery and resale, data destruction and secure electronics recycling.