Lisa,

Lots of good responses so far.  Another option depending on the size of the company would be to have everything shredded and take the decision out of the individual employee's hands.  Think of it as part of your recycling program while reducing the potential  risk of mistakes.  Hopefully your current vendor has the proper processes in place to handle the confidential information including a shred type that will cuase the material to be non-recoerable when they dispose of it.

Respectfully submitted 

Steve Petersen
Transamerica RIM manager
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