License cleanup is a small yet important part of employee offboarding. Without a coordinated approach, MSPs and IT teams risk experiencing potential issues such as additional costs for unused licenses and compliance gaps.
This guide discusses how to seamlessly add license cleanup to your employee offboarding process.
Tips for adding license cleanup to employee offboarding processes
Aside from deactivating accounts and reclaiming devices, a thorough onboarding process includes license cleanup. Here are some ways MSPs can make license management and cleanup more efficient:
Create a centralized documentation of all license types in use
Having a master license registry provides easy visibility for MSPs. When creating this list, include relevant licensing details, such as:
- SaaS platform (like Microsoft 365, Zoom, Salesforce) or applications and tools (Microsoft 365, Google Workspace, CRM, ERP, security tools, collaboration apps)
- License type (standard, premium, enterprise)
- Assigned users
- Renewal and cost details
💡 Tip: Link each employee account to assigned licenses for easy tracking during offboarding.
Streamlining your offboarding process
If you’re creating or refining your offboarding SOP, consider adding SaaS and application license management. This results in an IT employee offboarding checklist with license removal or reassignment as an integrated step.
Since license management becomes part of your offboarding checklist, you can easily coordinate with HR and procurement to trigger cleanup as soon as an employee’s exit is confirmed. This also ensures that approvals for license reassignment or deactivation aren’t neglected.
Automate license discovery and reassignment
Managing licenses manually can be tedious, so automating discovery and reassignment where possible allows MSPs to focus on more critical tasks. Automation opportunities will vary per organization, but here are some ideas:
- Use scripts or APIs to generate reports of active and inactive licenses.
- Automate reassignment of licenses to new users where appropriate.
- Configure alerts for unused or idle licenses that persist beyond offboarding.
- Schedule weekly PowerShell or API jobs to report active and inactive licenses.
- Integrate reports into PSA tickets to prompt license cleanup during offboarding.
- Auto-update a central license register stored in NinjaOne Docs.
💡 Tip: As one of the most common productivity platforms, automating Microsoft 365 license management is a great way to enhance efficiency. The script below will list all Microsoft 365 users, show their display names, and display their corresponding licenses.
Get-MsolUser -All | Where-Object {$_.isLicensed -eq $true} | Select DisplayName, Licenses |
Track and document cost savings
For transparency and ease of review, ensure that your master license registry (or similar IT documentation) logs the following:
- Employee name
- Licenses reclaimed
- Date removed
- Monthly/annual savings
You can use this for QBRs to demonstrate operational efficiency and ROI.
Align license management with compliance requirements
License management entails that you also ensure compliance across your organization. Some ways you can do this include:
- Ensuring all reclaimed licenses are properly deprovisioned to avoid unauthorized access.
- Storing cleanup logs for audit evidence.
- Confirming alignment with frameworks like ISO 27001 or SOC 2 that require strict user and license tracking.
Integrating NinjaOne in both license management and offboarding processes
NinjaOne can support license cleanup coordination by:
- Automating offboarding workflows with license reassignment tasks
- Storing license registers and cleanup documentation in NinjaOne Docs
- Generating client-facing QBR reports that highlight reclaimed licenses and savings
- Creating tickets or alerts when unused licenses remain unassigned
- Enabling integration with SaaS management APIs for license tracking
Maintain smooth organizational operations with a streamlined offboarding process and license cleanup
Coordinating license cleanup after offboarding reduces waste, improves compliance, and creates measurable financial savings for clients. By embedding license reclamation into offboarding SOPs, automating discovery, and tracking cost savings, MSPs can provide greater value and governance in client environments.
Related topics:
