How to Train Your Employees to Protect Sensitive Data?

Editor's note: This post was originally published on May 29, 2018 and has been revised for clarity and comprehensiveness.

Most business leaders assume that the biggest threat to their data are sophisticated hackers and malware. But here’s the hard truth: the real risk is inside the building. Almost all breaches start from inside the company, whether intentionally or by accident. Unfortunately, your employees often become the unintentional entry point for cyberattacks. That’s because all it takes is one click on a malicious link, or one unsecured device to compromise your entire network. 

Thankfully, your team doesn’t have to be the weak link of your cybersecurity. The solution isn’t more software, it’s smarter people. As your first line of defense, you can train them to become defenders instead of victims.  

Intelligent Technical Solutions (ITS) has helped hundreds of businesses boost their security posture. From our experience, training your team is one of the most crucial steps to securing your network. 

In this article, we’ll walk you through how to equip your team with the right mindset, tools, and behaviors to protect sensitive data at every level. 

Why Employee Training is Critical for Data Security 

Your employees interact with your systems every day, email, chat tools, shared drives, and customer databases. Now consider the fact that human error contributed to 95% of data breaches in 2024, and it paints a sobering picture of the importance of security awareness training. 

Here’s why investing in training makes business sense: 

• Compliance: Regulations like HIPAA, GDPR, PCI-DSS, and CMMC require employee training as part of risk management. 
• Financial Protection: IBM’s 2024 Cost of a Data Breach Report estimates that the average data breach costs $4.88 million. Prevention is far more affordable.
• Reputation Management: Customers and partners expect data protection. A breach can damage trust and drive business away. 
• Bottom line: A single mistake can undo millions in IT investments. Training helps mitigate this risk at the human level. 

Start with the Basics: What Counts as Sensitive Data? 

To train employees effectively, they first need to understand what they're protecting. Many don’t realize that data like names, phone numbers, or even calendar invites can be classified as sensitive. 

Here’s how to break it down: 

• Personally Identifiable Information (PII): Names, birth dates, Social Security numbers, email addresses. 
• Financial Data: Credit card information, banking records, vendor payments. 
• Health Information: Medical records and insurance claims (especially in healthcare or insurance sectors). 
• Business-Critical Data: Trade secrets, source code, contracts, client proposals. 

It’s critical to make it clear what qualifies as sensitive data in your organization. You can also create data classification tiers (e.g., Public, Internal Use, Confidential, Restricted) to guide behavior. Once that is done, encourage each department to map the data they use daily and identify potential weak points. 

Create a Culture of Cyber Awareness 

Security training shouldn’t be an annual event. It should be baked into your everyday operations, just like customer service or billing accuracy. 

Here’s how to make cybersecurity second nature: 

• Lead by Example: Executives and department heads should model good practices like locking screens, reporting suspicious emails, or using secure file-sharing tools. 
• Make It Routine: Include security tips in team huddles, newsletters, or internal chats. Make it part of your onboarding checklist for new hires. 
• Celebrate Participation: Recognize employees who report phishing attempts or complete training early. Rewards drive better engagement. 

Culture matters. When employees understand the ‘why’ behind policies, they’re more likely to follow them. 

What to Include in Your Employee Training Program 

Employee training should empower your team to take ownership of cybersecurity in their daily roles. That means focusing on behaviors they can control, not overwhelming them with IT jargon or complex technical theory. 

Here’s what your training program should include, with real-world examples and reasoning behind each topic:

1. Password Hygiene and Multi-Factor Authentication (MFA)

Weak or reused passwords are one of the most common entry points for cybercriminals. Even with strong firewalls, if an attacker has someone’s credentials, your defenses are already bypassed. 

Training goals: 

• Encourage employees to create strong, unique passwords using a mix of upper/lowercase letters, numbers, and symbols. 
• Explain why reusing passwords across multiple systems increases risk, one breached account can lead to others being compromised. 
• Recommend secure tools like LastPass, 1Password, or Bitwarden to store and manage passwords safely. 
• Demonstrate how Multi-Factor Authentication (MFA) adds another layer of security by requiring an extra step (e.g., phone code, app notification) even if a password is compromised. 

2. Phishing Awareness

Phishing remains the most successful form of cyberattack, because it targets people, not systems. Business email compromise (BEC) scams alone cost companies billions annually. 

Training goals: 

• Show real or simulated examples of phishing emails, including those that impersonate executives, vendors, or banks. 
• Train staff to hover over hyperlinks before clicking, check domain names carefully, and look out for misspellings or unusual requests. 
• Highlight emotional manipulation tactics (e.g., urgent tone, threats, or promises of rewards) that attackers often use. 
• Conduct routine phishing simulations to test employees’ ability to spot suspicious messages, and provide immediate feedback to reinforce good habits. 

3. Data Classification and Secure Handling

Not all data is created equal. Knowing the difference between public and restricted information helps employees treat data with the right level of care. 

Training goals: 

• Define different data sensitivity levels, Public, Internal Use Only, Confidential, and Restricted, and give clear examples of each. 
• Teach how to securely store data using encrypted drives or access-controlled folders. 
• Train staff on transmitting sensitive data safely, such as using secure email portals or encrypted messaging tools. 
• Explain how to dispose of data properly, whether it's shredding printed documents or digitally wiping devices before resale. 

4. Device and Endpoint Security

Every laptop, phone, or tablet that connects to your network is a potential risk. Employees must understand how to secure their devices, especially in hybrid or remote work setups. 

Training goals: 

• Reinforce habits like locking screens when away, avoiding shared or unsecured devices, and never leaving laptops unattended in public. 
• Emphasize the importance of regular software updates to patch vulnerabilities in operating systems and applications. 
• Train employees on the risks of public Wi-Fi, and how to use VPNs to encrypt traffic when working remotely. 
• Set policies for personal device use (BYOD), ensuring they meet security requirements like antivirus protection and data encryption. 

5. Cloud Collaboration and Shadow IT Risks

When employees use unauthorized tools (also known as “Shadow IT”), they unknowingly create visibility gaps and expose the business to data loss or noncompliance. 

Training goals: 

• Identify which cloud tools and collaboration platforms are company-approved, such as Microsoft 365, SharePoint, Teams, or Dropbox Business. 
• Train staff to avoid using personal accounts or apps (e.g., Gmail, Google Drive, WhatsApp) for work purposes—even for quick tasks. 
• Explain the risks of Shadow IT, including lack of encryption, missing audit trails, and potential data leakage. 
• Set clear guidelines for requesting new tools, so employees feel heard without bypassing security protocols. 

6. Incident Reporting and Response

The speed at which your team reports a threat can make the difference between minor inconvenience and full-scale crisis. But many employees delay reporting out of fear or uncertainty. 

Training goals: 

• Define what constitutes a security incident, from suspicious emails and unusual login alerts to lost devices or accidental data sharing. 
• Provide a simple reporting process, ideally just a few clicks or a dedicated hotline. 
• Make it clear who to contact (e.g., IT, security officer, managed service provider) and what information to include (e.g., date, system affected, screenshots). 
• Promote a no-blame culture, reassuring staff they won’t get in trouble for reporting early or asking questions.