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Small Business Employee

Policies Series: Employee

Confidentiality Policy

Special Report From: EasySmallBusinessHR.com

Do You Need An Employee Confidentiality Agreement?

Some things to think about when considering whether or not to

implement an employee confidentiality policy for your business:

Do some or all of your employees have direct access to

sensitive or proprietary information?

Is the information that your employee is exposed to of

interest to a competitor?

Will the information, if leaked or handled carelessly,

negatively impact your customers, clients, or company?

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Regardless of the type of information, will it be a

potential hardship to the organization if the information is

used inappropriately?

If you can answer yes to even one of these questions, then you

should seriously consider creating a confidentiality policy for

your company.

The confidentiality policy should summarize your company’s

expectations and your employees’ responsibilities when

handling confidential or proprietary information. Some tips for

creating your policy:

Summarize what constitutes as confidential or proprietary

information for your company. For most businesses, this

may include financial, personal or demographic

information, as well as specific proprietary information.

Describe the importance of how the information should

be handled and be sure to communicate to your employees

your company’s criteria. For example, if it is critical that

personal or business files not be left in an easily accessible

area such as a desk or in public place, or, if employees are

required to log off of their computers before leaving their

work areas make sure that staff are clear about these

specific requirements.

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Highlight the fact that the policy is a summary of

information. Emphasize that it is expected that employees

check in with their supervisor, or the appropriate

administrator if there is any question about whether the

information that they are handling is confidential, or if the

employee has any questions about how the information

should be safeguarded.

Have employees sign your confidentiality agreement and

place the signed agreement in the employee’s personnel

file.

Include the confidentiality agreement in your orientation

process. Have all new employees review and sign the form

during the period of time that the employee is completing

other new hire paperwork.

Make sure that the employee confidentiality agreement is

posted on your internal website and in any company policy

and procedure or employee manuals.

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