How are you dealing with information theft by terminated employees?

That's a question we've been dealing with as well. Some systems, like Box, allow an admin full control over the user's files in the cloud. I find that makes it even easier to control their access than when you would confiscate their hard drive. Also makes it easy to give their content to another employee. However, you need to get everyone using Box (or Dropbox or an equivalent service), and using it for all of their business files. We have simply made it company policy to do so. Now we have a process for assessing data in Box and assigning it to others post-termination. Their particular technology is not entirely smooth for "owner" transfer, but it works and is far easier than taking laptops and copying/moving files.

We use Google Docs a lot, especially spreadsheets. At my company, the senior leader of any project done on this platform is given editor rights to the item so that they can remove anyone with access instantly. Also, all the logins are managed via company email addresses, so that when the company lets someone go, of if they leave, the company is in control of their email address, and thus their Google docs access (via removing that person's old login and getting a new login via Google sent to their company email address). As Michael says above, it's not exactly smooth, but allows for cloud-based collaboration and control on the way out.

Randy,
We have been through this situation too. Obviously we need to continue to monitor and update employee terms of engagement and IP and confidentiality agreements to ensure that the question of ownership is 100% clear up front, and is continually re affirmed through periodic reviews and reminders. At least , at termination, there will be clear consideration of issue of "retained" proprietary information including electronic data files at the time of termination, and this should be considered in the overall termination package.

The growing use of personal tools such as smart phones makes the challenge far harder than just recovering a piece of Company provided hardware. In fact, for consultants who are generally required to provide their own tools, there will be no question of receiving and "cleaning" hardware on termination of a contractor.