Most businesses end up storing some kind of sensitive information at one point or another. Whether it’s customer details, employment records, or financial documents, keeping that kind of information confidential is a big responsibility. Not only does it need to be protected while its in use, it also needs to be properly destroyed when its no longer needed.
A lot of businesses make huge investments in security infrastructure, technology, and IT staff to protect their data, while overlooking the final and often most important step in any data management program; document destruction. What happens to paper documents when they’re no longer useful?
If they aren’t properly destroyed, paper records can pose a major security risk for your business. Even single data breach can be devastating, with Hiscox reporting that the average breach costs $200,000. Even worse, 60% of businesses that experience a breach don’t survive past six months.
A company-wide shredding policy ensures that sensitive documents don’t become a liability. But there’s no one-size-fits-all approach to document destruction. Some businesses adopt a shred-all policy, others prefer selective shredding.
But which shredding policy is right for your business? Both have their advantages, but one will likely be a better fit. In this article, we’ll break down the differences to help you decide.
What Is a Shredding Policy, and Why Does It Matter?
A shredding policy is a set of guidelines that determines how and when documents should be destroyed. It sets rules within a business or organization about which records need to be shredded, who is responsible for shredding them, and the procedures employees should follow when disposing of sensitive information.
Having a clear shredding policy helps businesses stay organized and protects them from security risks. Without one, employees are left to decide for themselves which documents should be shredded and which can go in the trash. This opens the door for inconsistency, errors, and potential data breaches.
A well-defined policy eliminates confusion by setting clear expectations. Employees don’t have to second-guess whether a document needs shredding or worry about making the wrong call. It also helps businesses stay compliant with data protection laws by ensuring confidential information is disposed of securely.
That said, not all shredding policies work the same way. Some businesses take a selective shredding approach, deciding on a case-by-case basis which documents to destroy. Others implement a shred-all policy, where everything gets shredded automatically.
Next, we’ll break down how these two policies work, their pros and cons, and why a shred-all policy is often the best choice for security, simplicity, and cost.
What Is Selective Shredding?
A selective shredding policy requires employees to decide which documents need to be shredded based on their contents. This approach typically follows one of two methods:
- Document-based selection: Certain types of documents like customer intake forms, financial records, or legal contracts are always shredded, because they consistently contain sensitive information.
- Content-based selection: Any document that includes personally identifiable information (PII) or protected health information (PHI) is designated for shredding. Since this can apply to a wide range of documents, employees must be trained to recognize and handle sensitive data properly.
While selective shredding can work in some environments, it relies heavily on employee judgment. Mistakes can happen, and a single oversight could mean a confidential document ends up in the trash instead of the shredder.
The Advantages of Selective Shredding
- Reduces shredding volume by limiting document destruction to only those with sensitive information.
- Can be cost-effective if a business produces a low volume of confidential documents.
- Flexible process that may allow for shredding on an as-needed basis rather than scheduled bulk shredding.
The Disadvantages of Selective Shredding
- Relies on employee judgment, increasing the risk of human error and security breaches.
- Requires ongoing training to ensure employees correctly identify and handle sensitive documents.
- Disrupts workflow, as employees must pause their tasks to determine whether each document should be shredded.
Selective shredding can be an option for businesses with well-defined document types and employees who are trained to follow strict policies. However, it introduces more complexity and risk, which is why many businesses prefer a shred-all policy instead.
What Is a Shred-All Policy?
A shred-all policy means every document gets shredded, no exceptions. Instead of deciding which papers contain sensitive information, employees follow a simple rule: if it’s on paper, it gets destroyed. This approach eliminates guesswork and significantly reduces the risk of confidential information ending up in the wrong hands.
The Advantages of a Shred-All Policy
- No decision-making required. Employees don’t have to stop and think about whether a document needs to be shredded—it’s automatic, making the process fast and efficient.
- Eliminates human error. There’s no risk of someone misjudging a document’s importance and accidentally throwing away sensitive information.
- No training necessary. Everyone follows the same rule: shred everything. No special instructions, no confusion.
- Helps with compliance. Many data protection laws, like the FACTA Disposal Rule, require businesses to properly destroy certain documents. A shred-all policy ensures you’re always in compliance without extra effort.
The Disadvantage of a Shred-All Policy
- Higher shredding volume. Because every document gets shredded, you may have higher costs associated with shredding services.
If security is your top priority, a shred-all policy is the safest and simplest option. It reduces risks, cuts down on decision-making, and ensures confidential information is always handled properly without adding extra work for your employees.
How to Create a Shredding Policy
A company-wide shredding policy is one of the easiest ways to protect sensitive information and prevent data breaches. It gives employees clear guidance on how to handle and dispose of confidential documents, reducing the chances of mistakes that could put your business at risk.
Step 1: Understand How Data Moves Through Your Business
Before setting up a shredding policy, take a close look at how sensitive information flows through your business. Who handles confidential documents? Where do they get stored? How are they currently being disposed of?
This step helps you identify weak spots in your process, like unnecessary access to sensitive files or inconsistent disposal practices, so you can create a policy that actually addresses your business’s needs.
Step 2: Establish a Retention Policy
Not every document should be shredded right away. A records retention policy outlines how long different types of records need to be kept before they’re destroyed.
Many industries have strict data retention rules, and state and federal privacy laws often require businesses to keep certain records for a set period. Your retention policy should align with these legal requirements while also ensuring old, unnecessary documents don’t stick around longer than they need to.
Step 3: Decide How Documents Will Be Destroyed
Once documents have reached the end of their lifecycle, they need to be disposed of properly. There are two main ways to handle this:
- In-house shredding: This requires purchasing shredding equipment, training employees on proper disposal procedures, and holding them accountable for securely shredding documents.
- Professional shredding services: A more efficient and secure option, this eliminates the need for employees to manage shredding themselves while ensuring compliance with privacy laws.
SecureScan Makes Document Destruction Simple
For businesses that want a hassle-free approach to document destruction, SecureScan offers secure shredding solutions designed for convenience and security.
We provide locking shredding bins that can be placed in high-traffic areas throughout your office. Employees simply drop in documents, no need to sort, shred, or worry about making mistakes.
At a schedule that works for you, our NAID AAA® certified team arrives to securely collect and shred the contents on-site, right outside your office, where you can watch the process if you’d like. Afterward, we return the bins so they’re ready to be refilled.
Every service includes a certificate of destruction, giving you documented proof that your records were securely destroyed.
For businesses that need to clear out old files, we also offer a one-time shredding purge, a quick and efficient way to securely dispose of large volumes of documents in a single visit.
What’s Next?
With the right shredding policy in place, your business can reduce security risks, stay compliant with data privacy laws, and simplify document disposal. Whether you choose an in-house process or a professional shredding service, having a clear plan ensures confidential information stays protected long after it’s no longer needed.
Let us help you improve data security while reducing your employee’s workload. Contact us for more information about our shredding services, or get a free price quote and schedule your first appointment with one of our technicians.
