Managing credentials across an entire organization is no small task. You're responsible for keeping your company's sensitive data protected while making sure employees can get their work done without friction. A password manager for IT teams like LastPass gives you the control and visibility you need.
This guide breaks down the features that matter most when you're evaluating password managers for your organization. You'll learn what to prioritize — from admin consoles to compliance reporting — and why these capabilities make a real difference in your day-to-day operations.
By the end, you'll have a clear picture of what separates a basic password vault from a tool built for IT management.
Key takeaways: Password manager features for IT managers
- Role-based access control lets you assign different permission levels, so each team member gets exactly the access they need
- Automated provisioning syncs with your directory to streamline onboarding and offboarding without manual work from your team
- SIEM integrations give you real-time visibility into security events and user behavior across your entire organization
- LastPass gives you 120+ customizable security policies to enforce password rules at the individual, group, or company level
- 24/7 support and multiple recovery options reduce your IT helpdesk workload and keep employees from getting locked out
Why do IT managers need a password manager?
IT managers need a password manager because credentials are one of the biggest security vulnerabilities in any organization. When employees create their own passwords, they tend to reuse them, make them too simple, or write them down somewhere insecure. These habits put your company at risk — and when you ask employees to create stronger, unique passwords, they forget them and flood your helpdesk with reset tickets.
A team password manager takes that problem off your plate. It stores all your credentials in one secure place, creates strong passwords automatically, and shows you which accounts are at risk. You can see who's accessing what, spot weak passwords before they become problems, and automatically cut off access when someone leaves the company.
What features should IT managers look for in a password manager?
Admin Console with role-based access control
Your Admin Console is mission control for credential management. A good dashboard lets you create user groups, set permissions, and monitor activity across your organization. Look for role-based access control that lets you designate different levels of access (not everyone needs the same privileges).
The best consoles let you create custom roles. For example, you might want your helpdesk staff to handle day-to-day password support tickets without giving them full administrative access. This way, your team can handle everyday tasks without you having to give everyone the keys to the kingdom.
Automatic onboarding and offboarding
Adding and removing users by hand gets old fast. With the right tools, new hires can have their credentials ready on day one. And when someone leaves, automatic offboarding means their access is revoked right away (no extra steps required).
Directory integrations with Active Directory, Microsoft Entra ID, Google Workspace, Okta, and OneLogin make this happen automatically. Your password manager syncs with your existing systems in real-time, so when HR adds a new employee, they're set up in your password manager too.
The same goes for offboarding. When someone is removed from your directory, their password manager access is cut off instantly.
Security policy management
Having control over how passwords are created, stored, and shared makes a big difference. Customizable security policies let you set rules at the individual, group, or company level.
A good password manager lets you enforce minimum password length, require special characters, block password reuse, and require multifactor authentication. You can also restrict password sharing to certain groups or turn it off entirely for sensitive credentials.
Reporting and compliance
When auditors come knocking, you'll want to show them exactly how credentials are being managed. Detailed reporting lets you track who accessed what, spot unusual activity, and prove you're meeting industry standards.
Some password managers also connect to security tools like Splunk and Azure Sentinel. This lets you pull password data into the same place you monitor everything else, making it easier to catch problems early and keep all your reports in one spot. Learn more about SIEM integrations and how they can enhance your visibility.
Multifactor authentication support
Adding a second layer of protection makes a big difference. A password manager with multiple MFA options gives you flexibility so that you can use stricter methods for sensitive accounts and simpler ones where speed matters more.
Look for support across authenticator apps, hardware security keys like YubiKey, biometrics like Windows Hello and Touch ID, and backup options like SMS or voice calls. More options means it's easier to roll out MFA to your whole team.
What makes LastPass the best password manager for IT managers?
LastPass gives you 120+ security policies to configure
LastPass gives you plenty of room to customize. You get over 120 security policies that control things like password length requirements, how often passwords need to be changed, whether employees can share credentials, and which MFA methods are required.
You can also apply different rules to different groups. For example, your finance team might need longer passwords and mandatory hardware keys, while a team of seasonal interns can use standard authentication for their limited access. Once your policies are in place, LastPass enforces them automatically.
LastPass syncs with your user directory automatically
LastPass connects directly with Microsoft Entra ID, Okta, Google Workspace, OneLogin, and on-premises Active Directory. The lightweight AD Connector syncs user profiles in real-time.
When someone joins your team, they're automatically set up in LastPass. When they leave, their access is cut off right away. No manual work required.
LastPass connects to your security tools for real-time monitoring
LastPass integrates with Splunk and Azure Sentinel so you can pull password management data into the same dashboard you use for everything else.
This means you can build custom reports, automate compliance documentation, and spot unusual activity in minutes. You'll always know who's accessing what, and you can respond to issues quickly using the tools you already have.
LastPass includes 4 admin role types for your team
Not everyone on your IT team needs full admin access. LastPass includes 4 role types (users, helpdesk admin, admin, and super admin) so you can give each person the right level of control.
The helpdesk admin role is especially handy. You can customize it for your support staff, giving them what they need to handle password reset tickets and basic troubleshooting without access to sensitive settings.
LastPass offers 24/7 support across multiple channels
When something goes wrong at 2 AM, it's good to know help is available. LastPass Business includes 24/7 live technical support via phone, email, and chat.
LastPass also offers more recovery options than most password managers, including admin-assisted reset, one-time recovery passwords, and SMS recovery. Fewer locked-out employees means less time spent on access issues.
How do password managers keep credentials secure for organizations?
Password managers protect your credentials using encryption, essentially scrambling your data so it's unreadable without the right key. Most password managers use AES-256, the same encryption standard trusted by governments and banks.
The best password managers use a zero-knowledge model. This means your master password never leaves your device, and the company running the password manager can't see your data. Everything is encrypted locally before it's stored or synced, so even if someone accessed the servers, they'd just find scrambled data.
On top of encryption, many password managers add features like dark web monitoring, which alerts you if your credentials appear in a breach, and password health reports, which flag weak or reused passwords. These tools help you catch issues early. LastPass includes both of these, giving IT managers visibility into their organization's overall password hygiene.
How do you get your team to use a password manager?
Getting buy-in starts with choosing a solution that's easy to pick up. An intuitive interface with a familiar folder-based organization system makes onboarding easier.
Roll out the password manager in phases. Begin with your IT department to work out any kinks, then expand to other teams. Offer short training sessions that focus on the basics, including how to save passwords, how to use autofill, and how to share credentials securely.
Make it the path of least resistance. When saving and filling passwords is easier than typing them manually, adoption happens naturally. Track usage through your Admin Console and follow up with teams that aren't engaging. Sometimes all it takes is a quick reminder about the features that make their lives easier.
LastPass: The password manager built for IT teams
When you're responsible for your organization's credentials, a basic password vault only gets you so far. What really helps is having admin controls, automatic user management, compliance reporting, and support when you need it.
LastPass covers all of these. The LastPass password generator features create strong, unique passwords for every account. The Admin Console shows you what's happening across your organization. And the directory integrations take care of the repetitive parts of user management.
Ready to see how LastPass can simplify things for your IT team? Start your free trial today and see the difference a team password manager makes.
