OneDrive for Business gives every Microsoft 365 user 1 TB of cloud storage that syncs files between their computer and the cloud. When set up correctly, it works seamlessly in the background. Your team saves files to familiar folders in File Explorer, and those files are automatically backed up and accessible from any device. When set up poorly, you end up with duplicate files, confused folder structures, and employees who refuse to use it because "it is too complicated."
This guide walks you through how to set up OneDrive for Business the right way so your team actually adopts it.
OneDrive vs. SharePoint: Which to Use When
Before you start, understand the difference between OneDrive and SharePoint. They work together, but they serve different purposes.
OneDrive is for personal work files that belong to one person. Think of it as that person's "My Documents" folder in the cloud. Their drafts, notes, individual work, and personal reference files all belong here.
SharePoint is for shared team files that multiple people need to access. Project folders, shared templates, company policies, and departmental resources all belong in SharePoint document libraries.
The most common mistake is putting shared files in one person's OneDrive and sharing them out. This creates a serious problem: if that person leaves the company, access to those files breaks. Their OneDrive is deleted 30 days after their Microsoft 365 account is removed unless someone intervenes. As a rule of thumb, if more than one person needs regular access to a folder, it belongs in SharePoint, not OneDrive.
Step 1: Verify OneDrive Is Provisioned for Each User
OneDrive for Business is included with Microsoft 365 Business Premium, which is the license tier Athencia deploys. It is also included with Business Basic and Business Standard licenses.
To verify that OneDrive is active for a user, have them sign in to onedrive.com with their work email address and password. If the OneDrive interface loads and they can see their files area, it is provisioned and ready.
If OneDrive is not available, check the user's license assignment. Sign in to the Microsoft 365 admin center at admin.microsoft.com, navigate to Users then Active users, click on the user's name, and check their Licenses and apps section. Make sure a license that includes OneDrive is assigned and that the OneDrive toggle is turned on.
For brand-new users, OneDrive may take up to 24 hours to provision after the license is assigned. If it has been longer than that, try navigating to the user's OneDrive URL directly from the admin center to trigger provisioning.
Step 2: Set Up the OneDrive Sync Client
The OneDrive sync client is built into Windows 10 and Windows 11, so there is no separate installation needed. It runs in the background and keeps files synchronized between the computer and the cloud.
To set it up on an employee's computer:
- Look for the OneDrive cloud icon in the system tray (the area near the clock in the bottom-right corner of the screen). It may be a white cloud or a gray cloud.
- Click the icon and select Sign in. If prompted, choose Work or school account.
- Enter the employee's work email address and password. Complete any multi-factor authentication prompts.
- OneDrive will ask which folders to sync. For most users, the default selection is fine to start with.
- Once setup is complete, a new folder appears in File Explorer under the company name. This is where synced files live.
For employees with laptops or devices that have limited local storage (128 GB or 256 GB drives), enable Files On-Demand. Click the OneDrive cloud icon in the system tray, click the gear icon, select Settings, go to the Sync and backup tab, and make sure Files On-Demand is turned on. With this setting enabled, files appear in File Explorer but only download to the device when someone opens them, saving significant disk space.
If your company devices are managed through Microsoft Intune (included with Microsoft 365 Business Premium), your IT provider can push OneDrive sync settings, including Files On-Demand and silent sign-in, to all company devices at once. This eliminates the need to configure each computer individually.
Step 3: Establish a Folder Structure
A clear folder structure, communicated before rollout, prevents the chaos that develops when everyone creates their own system.
Keep the top-level folders simple and consistent across users. A good starting point:
- Clients or Projects for client-specific or project-specific work
- Templates for frequently used document templates
- Reference for personal reference materials
- Archive for completed work that needs to be kept but is no longer active
Avoid replicating a legacy file server's ten-level-deep folder hierarchy. Deep nesting makes files hard to find and causes sync issues. Two to three levels deep is the practical limit.
Create a short document outlining the company standard for folder names and file names. Share this with your team before the rollout, not after. Clear expectations set upfront prevent months of cleanup later. No more "Final_v2_REAL_FINAL.docx" because version history handles that automatically.
Step 4: Migrate Existing Files
If your team is moving from a local file server, another cloud service, or files scattered across individual computers, plan the migration before dumping everything into OneDrive.
For small migrations (under 100 GB total): Drag and drop files from the old location into the synced OneDrive or SharePoint folder in File Explorer. This is simple and works well for small teams.
For larger migrations: Use the SharePoint Migration Tool (free from Microsoft) or a third-party migration tool for more reliable, faster transfers. These tools preserve file metadata and handle large file counts better than manual drag-and-drop.
After migrating, spot-check files by opening them and verifying they are complete, not just by checking file names and counts. A file that transferred with zero bytes or became corrupted during the move will not show up in a file count check.
Set a cutoff date and communicate it clearly: "After [date], the old file server is read-only. All new work goes in OneDrive and SharePoint." Without a firm deadline, the migration drags on indefinitely.
Step 5: Train Your Team
Rollout training does not need to be a formal class. A 20-to-30 minute walkthrough covering the essentials is enough for most teams.
Show employees how to find files in File Explorer. Open File Explorer, navigate to the OneDrive folder under the company name, and show them that working with files here is identical to working with any other folder. They can save, open, rename, and move files exactly as they always have.
Demonstrate how to share files. Right-click a file, select Share, and show how to send a sharing link to a colleague or external contact. Walk through the permission options: Can edit gives the recipient full editing access, while Can view gives read-only access. For external sharing, show how to set an expiration date on the link so it does not remain active indefinitely.
Explain version history. Right-click a file, select Version history, and show how OneDrive keeps previous versions of every file. If someone accidentally overwrites a document or needs to see what a file looked like last week, they can restore a previous version with two clicks. This single feature eliminates one of the most common support requests.
Show how to recover deleted files. If someone accidentally deletes a file, it goes to the OneDrive recycle bin, which retains deleted files for 93 days. Open OneDrive in the web browser, click Recycle bin in the left sidebar, select the file, and click Restore. The file goes back to its original location.
It is also worth mentioning that OneDrive is not a substitute for a true backup solution. OneDrive syncs changes, including deletions, across all devices. A third-party backup service like Dropsuite, which Athencia includes in its managed IT stack, independently backs up OneDrive, email, and SharePoint data so that files can be recovered even outside of OneDrive's own 93-day recycle bin window.
Common Mistakes to Avoid
- Syncing too many files on a device with limited storage. If a laptop has a 256 GB drive, syncing 500 GB of files will fill it up and cause problems. Use Files On-Demand to solve this.
- Not disabling personal OneDrive on work computers. Employees can sign into both a personal OneDrive account and a business OneDrive account on the same computer. If both are active, people accidentally save work files to their personal account. Disable the personal OneDrive sign-in on company-managed devices through Intune policies.
- Sharing files with "Anyone with the link" when "People in your organization" is more appropriate. The "Anyone" option creates a link that works for anyone on the internet, with no authentication required. For internal documents, use the more restrictive option.
- Using one person's OneDrive as the team file server. If multiple people need regular access to the same files, those files belong in a SharePoint library, not someone's personal OneDrive.
- No folder structure or naming conventions. Without clear standards communicated at rollout, the file structure devolves into chaos within weeks.
Need Help?
Setting up OneDrive the right way from the start saves hours of cleanup later. If you need help with the rollout or want to make sure your setup follows best practices, get in touch with Athencia and we will get your team set up properly.
