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Employees Cost UK Business £130,000 Managing Passwords

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But a third of workers do not use passwords on mobile devices used for work according to the Widmeyer survey

Poor password habits are putting employers at risk and losing them hundreds of thousands of pounds in lost productivity, according to new research from Centrify , a unified identity management company specialising in data centre’s, cloud and mobile.

The Widmeyer survey of 1,000 UK workers, showed the average employee wastes £261  a year in company time on trying to manage multiple passwords, which for a company with 500 staff is a loss of more than £130,000 a year.

High on many people’s list of ‘most annoying things’, passwords it seems are becoming the cause of major headaches today. 


According to the survey, over a quarter of us now enter a password online more than 10 times a day, which could mean 3,500 to 4,000 times a year.  This is becoming a real challenge for employers who need to manage security and privacy concerns and for employees who are costing their companies time and money.”

Yet while around half (47 per cent) use their personal mobile devices for business purposes, one in three (34 per cent) admit they do not actually use passwords on these devices even though they keep office email, confidential documents, customer contact information and budget information on them.

The research also shows:

•       More than one in three (38 per cent) have accounts they cannot get into any more because they cannot remember the password

•       28 per cent get locked out at least once a month due to multiple incorrect password entries 

•       One in five change their passwords at least once a month and 8 per cent change them every week

•       Most have little faith in password security – just 15 per cent believe their passwords are ‘very secure’

With 42 % of respondents creating at least one new account profile every week – more than 50 a year – the problem with password management will get worse.  In fact, 14 per cent believe they will have 100+ passwords to deal with in the next five years.  Despite this, it is believed that many already seriously underestimate the number of account profiles they have online, with 47% believing they have just five profiles – although a quarter admit they have 21 or more. 

Top 5 bad password practices

When asked what they do in order to remember their passwords, survey respondents said they:

  1. Always use the same password whenever possible
  2. Rotate through a variety of similar passwords
  3. Keep a written password in a master book of passwords
  4. Use personal information in a password
  5. Avoid using complicated symbols or combining upper and lower case

Top 5 password tips

To help employers, Centrify has compiled a list of top tips on effective password management:

•       Educate staff about using passwords – make it a key part of your corporate security policy

•       Make it easier for employees to work anywhere anytime by using technology that offers single sign-on capabilities – i.e. one click to access all of their work accounts and applications

•       With some mobile phones now providing both identity and access management capabilities, incorporate them as part of your BYOD (bring your own device) policy

•       Create one profile for any corporate log-ins, and then have privileges for individual employees within the one profile.  Anyone who leaves the company can be removed automatically

•       Think about replacing passwords with something much more intuitive like passphrases.