Key identity and access management (IAM) best practices in 2025

Picture a scenario where your new marketing manager just started Monday morning, but can't access the CRM until Wednesday because IT is swamped with requests.

Meanwhile, a contractor who finished their project three months ago still has admin access to your financial systems because nobody remembered to remove it. And your sales team shares a login for the analytics platform because individual accounts are "too complicated to set up."

Sound familiar? These aren't rare. They’re daily. And they create both risk and friction. When access management runs on spreadsheets and sticky notes, getting access takes too long, removing access rarely happens, and nobody really knows who can see what.

Good IAM fixes these problems by creating clear, automated processes for managing who gets access to what. When implemented properly, IAM becomes the foundation that lets your business operate securely and efficiently.

We created this guide to show you the practical steps and proven practices that turn access chaos into a system that actually works.

What is identity and access management (IAM)?

Identity and access management is a security framework for managing user identities and controlling access to company systems, data, and applications. It encompasses the policies, technologies, and processes that determine who gets access to what within your organization.

This framework deals with everything from routine tasks to critical security decisions:

• Creating accounts for new hires and contractors

• Granting access to specific applications and data

• Updating permissions when people change roles

• Removing access when people leave

• Monitoring who's accessing what and when

The role of IAM extends beyond just security. It supports compliance with regulations like SOX and GDPR, enables secure digital transformation initiatives, and provides the foundation for remote work capabilities.

The urgency around IAM has never been clearer. The average cost of a data breach reached an all-time high in 2024 of $4.88 million, a 10% increase from 2023 cost of a data breach, while as of 2023, 99% of security decision makers expected to suffer identity-related breaches. These numbers represent real businesses facing real consequences for identity management gaps.

What are the roles in identity and access management?

Effective IAM requires coordination between several key roles within your organization. Understanding these responsibilities helps ensure your IAM strategy succeeds:

1. IAM administrator

IAM administrators build and maintain your access control system. They design policies, configure access rules, and maintain the overall IAM infrastructure. That also includes staying on top of new IAM technologies and security threats as they emerge.

2. Security team

The security team sets the overall direction for IAM policies and makes sure they actually protect your organization. They conduct risk assessments, investigate access-related security incidents, and work with compliance teams to ensure IAM practices meet regulatory requirements. 

3. IT/help desk staff

IT and help desk teams handle the day-to-day operational aspects of IAM, including user onboarding, password resets, and access troubleshooting. They're often the first point of contact when employees have access issues, plus they manage the provisioning and deprovisioning of accounts as people join, change roles, or leave the organization.

4. End users

Every employee has a role in making IAM work by following security policies. Users need to understand their responsibilities around password management, multi-factor authentication (MFA), and appropriate use of their access privileges. Their cooperation directly impacts how well your entire IAM system works.

These roles must collaborate closely to maintain effective identity governance and a strong security posture. Clear communication channels and well-defined responsibilities prevent gaps that could lead to security vulnerabilities or operational inefficiencies.

Automate access changes when employment status updates instantly

See Rippling

How to implement an IAM strategy

To implement IAM effectively, start by auditing current access, define clear goals, develop access policies, select the right tools, and train staff—while automating wherever possible. 

Here's how to break this down step by step:

1. Assess current identity management processes

Start by figuring out what you have now. Map out who has access to what across all your systems and document how accounts are currently managed. This baseline shows you the scope of work involved and helps you prioritize what needs fixing first. You might discover forgotten accounts, overprivileged users, or systems with no access controls at all.

2. Define clear objectives aligned with business needs

Decide what you're trying to achieve with IAM. Maybe you want to cut down account setup time for new hires, improve security, or pass your next compliance audit. These goals should connect to real business outcomes like faster onboarding, fewer security incidents, or avoiding regulatory fines. Clear objectives help you measure success and justify the investment.

3. Identify critical systems and data requiring protection

Figure out what you're actually protecting. List your most sensitive applications, databases, and information that need the strongest access controls. This includes financial systems, customer data, intellectual property, and anything subject to regulatory requirements. Understanding what matters most helps you apply the right level of security without overdoing it for low-risk resources.

4. Develop policies for user provisioning, de-provisioning, and access reviews

Create standardized processes for granting access when people join or change roles, removing access when they leave, and regularly reviewing existing permissions. These policies should specify approval workflows, required documentation, and timelines for each type of access change. Consistent processes reduce errors and ensure security requirements are met.

5. Select suitable IAM tools and technologies

Choose IAM solutions that integrate with your existing infrastructure and support your long-term business needs. Consider factors like scalability, ease of use, vendor support, and compatibility with your current applications. The right technology should make IAM management easier, not more complicated.

6. Implement multi-layered authentication methods

Roll out MFA across critical systems, starting with your most sensitive resources and expanding based on risk levels. Choose authentication methods that balance security with user experience, considering factors like device compatibility and how they'll impact daily workflows. Layer different approaches based on how sensitive the data or system is.

7. Establish continuous monitoring and auditing procedures

Set up systems to track user access patterns, spot suspicious activity, and generate compliance reports. Regular auditing helps you find unused accounts, inappropriate access levels, and potential security threats. Automated monitoring reduces manual work while giving you better visibility into what's happening with user access.

8. Train staff on IAM policies and security awareness

Make sure everyone understands their role in maintaining secure access practices. This includes end users understanding password requirements and administrators knowing incident response procedures. Training should be ongoing rather than one-time, adapting to new threats and changing business needs. 

Top 10 IAM best practices for 2025 

Top IAM practices include MFA enforcement, least privilege access, role-based controls, lifecycle automation, SSO implementation, data encryption, and comprehensive user training. Here are the specific practices that will strengthen your IAM strategy:

1. Enforce multi-factor authentication (MFA) universally across all critical systems

Make MFA mandatory, not optional, for accessing sensitive resources. Start with your most critical systems and expand coverage based on risk. Choose authentication methods that work well for your users while providing strong security. The goal is consistent protection across your entire environment, not just scattered coverage here and there.

2. Adopt the principle of least privilege

Give users the minimum access they need to do their jobs, nothing more. This limits damage from compromised accounts and reduces insider threats. Review permissions regularly to make sure they haven't expanded beyond what's actually needed. When in doubt, err on the side of restriction rather than convenience.

3. Use role-based access control (RBAC) or attribute-based access control (ABAC) for scalable permission management

Group users into roles (RBAC) with predefined access levels instead of managing individual permissions for every person. This approach scales much better as your organization grows and makes it easier to maintain consistent access policies. ABAC provides even more granular control by considering multiple factors like department, location, and time of access.

4. Regularly review and revoke inactive or unnecessary accounts

Do periodic access reviews to find and remove accounts that are no longer needed. This includes former employees, contractors whose projects have ended, and service accounts that aren't being used anymore. Automated tools can help flag accounts that haven't been used recently, but you still need human judgment to make deactivation decisions.

5. Automate onboarding, offboarding, and permission changes to reduce errors

Manual processes lead to mistakes and delays that create security problems. Automated workflows ensure consistent application of access policies and reduce the time between role changes and permission updates. Integration between HR systems and IAM tools can trigger access changes automatically when someone's employment status changes.

6. Implement single sign-on (SSO) solutions to improve usability while maintaining security

SSO reduces password fatigue and improves user experience while giving administrators better visibility into access patterns. Users authenticate once and gain access to multiple applications without entering credentials repeatedly. This approach also makes it easier to implement stronger authentication methods since users only need to complete MFA once per session.

7. Encrypt sensitive identity data both at rest and in transit

Protect stored user credentials, access logs, and identity information with strong encryption. This includes data stored in identity systems, transmitted during authentication, and archived in backup systems. Encryption ensures that even if data gets compromised, it remains unreadable without the proper decryption keys.

8. Continuously monitor user activity logs for suspicious behavior

Set up monitoring systems that can spot unusual access patterns, failed login attempts, and other signs of potential security incidents. Look for activities like access from unusual locations, multiple failed authentication attempts, or attempts to gain higher privileges. Automated alerting helps security teams respond quickly to potential threats.

9. Conduct periodic vulnerability assessments of your IAM infrastructure

Regularly test your IAM systems for security weaknesses, configuration errors, and compliance gaps. This includes penetration testing, configuration reviews, and assessment of access controls. External security assessments can provide valuable perspective on vulnerabilities that your internal teams might miss.

10. Educate employees about IAM policies, phishing risks, and secure password practices

Security awareness training should cover IAM-specific topics like recognizing phishing attempts that target credentials, understanding why MFA matters, and following proper procedures for requesting access changes. Regular training updates help employees stay current with evolving threats and changing security policies.

No more spreadsheets, forgotten accounts, or access delays

See Rippling

Common IAM challenges (and how to fix them)

Even well-planned IAM security implementations face common challenges that organizations need to address:

Unauthorized access and data breaches

Weak access controls or compromised credentials can lead to unauthorized access to sensitive systems and data. This risk increases with the complexity of your IT environment and the number of external integrations. Regular access reviews, strong authentication requirements, and monitoring systems help reduce this risk, but it's an ongoing battle.

Insider threats

Employees, contractors, or business partners with legitimate access may misuse their privileges for malicious purposes or accidentally cause security incidents. The principle of least privilege and continuous monitoring help detect and prevent insider threats, but balancing security with trust remains tricky.

Credential compromise

Stolen, shared, or weak passwords remain a major vulnerability even with IAM systems in place. MFA helps significantly, but organizations still need to address strong password policies, secure credential storage, and rapid response when credentials might be compromised.

Lack of visibility and monitoring

Without proper logging and monitoring, you might not detect security incidents until major damage has occurred. Setting up comprehensive audit trails and real-time monitoring takes careful planning and ongoing maintenance, but provides crucial visibility into access activities and potential threats.

Inadequate user lifecycle management

Delays in provisioning access for new employees or removing access for departing staff create both security risks and productivity problems. Automated workflows help, but you still need clear processes for handling role changes, temporary access needs, and emergency situations that fall outside normal procedures.

Simplify identity and access management with Rippling

Rippling streamlines your identity and access management by combining IAM with HR, IT, and Finance tools in one unified platform. Instead of juggling separate systems, you get comprehensive security features that scale with your business.

Key features include:

• Centralized employee identity data that keeps user information synchronized across all applications

• Automated onboarding and offboarding workflows that update access permissions instantly when people join, change roles, or leave

• Real-time monitoring and logging to detect suspicious behavior and maintain compliance

• Native integrations that extend IAM policies across your entire technology stack without custom development

• Role-based access controls that automatically assign permissions based on job functions and department

• Single sign-on capabilities that improve user experience while maintaining security

• Audit trails and compliance reporting that simplify regulatory requirements and security reviews

The result is IAM that actually works the way your business does. When someone's employment status changes in HR, their system access updates automatically. No more spreadsheets, no more forgotten accounts, and no more delays getting people the access they need.

IAM best practices FAQs

What are the 4 pillars of IAM?

The four pillars of IAM are:

• Identity governance and administration (managing user lifecycles and access requests)

• Access management (controlling what users can access)

• Privileged access management (securing administrative accounts)

• Identity intelligence (monitoring and analyzing access patterns). 

These pillars work together to provide comprehensive identity and access control across your organization.

How does multi-factor authentication improve security?

Multi-factor authentication requires users to provide multiple forms of verification before accessing systems, making it much harder for attackers to gain unauthorized access even with stolen passwords. MFA typically combines something you know (password), something you have (phone or token), and something you are (biometric data) to create layered security that's difficult to compromise remotely.

How can automation enhance IAM processes?

Automation reduces manual errors, speeds up access provisioning and deprovisioning, and ensures consistent application of security policies. Plus automated workflows can trigger access changes based on HR events, flag unusual access patterns for review, and generate compliance reports without manual intervention. This improves both security and operational efficiency while reducing the administrative burden on IT teams.

What's the difference between authentication and authorization?

The difference between authentication and authorization is that authentication verifies who someone is (like checking an ID), while authorization determines what they're allowed to do (like checking if they have permission to enter a specific room). In IAM terms, authentication confirms user identity through passwords, biometrics, or tokens, while authorization controls which applications, data, or functions that authenticated user can access based on their role and permissions.