If you’ve ever watched a colleague save a file to OneDrive when it clearly belonged in SharePoint — or vice versa — you’re not alone. Most organizations using Microsoft 365 deal with the same confusion daily: duplicate files scattered across both platforms, inconsistent folder structures, and employees pinging IT to ask where things are supposed to go.
The frustrating part? Microsoft doesn’t make this obvious out of the box. Both tools look similar, sync to your desktop the same way, and let you share files. So what’s the actual difference, and why does it matter?
By the end of this guide, you’ll have a clear, practical framework your team can follow. No more guessing.
The Short Answer: Personal vs. Shared
Here’s the simplest way to think about it:
- OneDrive = your personal cloud storage (“my documents”)
- SharePoint = team and organizational content (“our documents”)
If only you need a file, it belongs in OneDrive. If others need to access, edit, or reference it over time, it belongs in SharePoint.
Microsoft describes OneDrive as “online storage space provisioned per individual user to store, protect, access, and share their work files.” SharePoint, by contrast, is “a web-based platform used to create sites that securely store, organize, share, and access information for teams and organizations.”
Same company, different purposes.
When to Use OneDrive
OneDrive is built for individual work. Use it for:
- Drafts and works-in-progress you’re not ready to share with the team
- Personal notes, planning docs, or templates you reference individually
- Files synced from your desktop for backup and access across devices
- Ad-hoc sharing when you need to send something to a colleague quickly
Think of OneDrive as your personal workspace in the cloud. It’s where you do your thinking before something becomes official.
A common Microsoft best practice: “Work in OneDrive, publish to SharePoint.” Start your drafts in OneDrive, then move them to SharePoint once they become team or organizational artifacts.
When to Use SharePoint
SharePoint is built for shared work. Use it for:
- Team projects with multiple contributors who need access to the same files
- Policies, SOPs, and documents that require version control and governance
- Departmental libraries — HR forms, Finance templates, Operations procedures
- Content that requires compliance tracking, retention policies, or audit trails
- Anything that should outlive an individual employee
SharePoint adds structure that OneDrive doesn’t: sites, libraries, metadata, content types, and granular permissions tailored to groups or the entire organization. If a document matters to more than one person, it belongs here.
Where It Gets Confusing (And How to Fix It)
Even with the personal vs. shared distinction, organizations still run into problems. Here’s why:
Problem 1: Teams creates SharePoint sites automatically.
When you create a Microsoft Teams channel, it spins up a SharePoint site in the background. Most employees don’t realize this — they think they’re saving files “in Teams” when they’re actually using SharePoint. This leads to sites no one manages and content no one can find.
Problem 2: OneDrive “Shared with Me” looks like collaboration.
When someone shares a OneDrive file with you, it appears in your “Shared with Me” folder. It feels collaborative, but it’s not governed. There’s no central ownership, no retention policy, and no guarantee the file will exist tomorrow if the owner leaves.
Problem 3: No naming conventions or folder structure.
Without clear guidelines, both OneDrive and SharePoint become dumping grounds. People create folders based on personal logic, and six months later, no one can find anything.
The solution: Establish clear guidelines and train teams once — not through ongoing IT tickets. A 30-minute session explaining “personal vs. shared” and showing where departmental content lives can eliminate months of confusion.
A Simple Decision Framework for Your Team
When someone asks “where should I save this?” — here’s the logic:
- Is this for me only? → OneDrive
- Will others need to edit or access this? → SharePoint
- Does it need retention or compliance controls? → SharePoint
- Am I just drafting before sharing? → OneDrive now, move to SharePoint later
- Should this file exist if I leave the company? → SharePoint
Post this somewhere visible. It answers 90% of the questions.
What Happens When Someone Leaves?
This is where the distinction really matters.
When an employee leaves, their OneDrive files are retained for a default period of 30 days. During that window, a manager or designated user can access and download what’s needed. After that, the files are deleted — unless a global admin intervenes to recover them from the recycle bin (possible for up to 93 days in some cases).
SharePoint content, by contrast, lives on. It’s tied to the site, not the person. When an employee leaves, their contributions to SharePoint libraries remain intact, governed by whatever retention policies you’ve set.
If your team is saving important work in OneDrive instead of SharePoint, you’re one resignation away from losing it.
How Teams Fits Into the Picture
Microsoft Teams adds another layer — but it’s simpler than it looks.
- Files shared in a Teams channel are stored in the SharePoint site connected to that team.
- Files shared in private chats are stored in the sender’s OneDrive.
Teams is a collaboration hub, not a storage system. It surfaces files from SharePoint and OneDrive in one interface. Understanding this helps employees realize that “saving to Teams” is really “saving to SharePoint” — and that private chat attachments live in personal storage, not team storage.
One important note: there’s no native, automatic sync that moves files from OneDrive to SharePoint. If you want something in SharePoint, you need to upload it there intentionally (or use third-party tools). This is by design — Microsoft wants you to be deliberate about what becomes shared content.
How to Set This Up the Right Way
If your organization is still figuring out SharePoint vs. OneDrive, here’s a starting point:
- Create a SharePoint site structure that matches your org. Organize by department, function, or project — whatever makes sense for how your teams work.
- Use metadata and naming conventions from day one. Tags like document type, owner, and status make search actually useful.
- Sync SharePoint libraries to desktops. Employees can access SharePoint files through File Explorer, just like OneDrive. This removes the friction of “going to SharePoint” and makes adoption easier.
- Communicate the framework clearly. A short guide or training session prevents months of cleanup later.
- Revisit permissions regularly. SharePoint’s granular controls are powerful, but only if someone’s managing them.
The Bottom Line
SharePoint and OneDrive aren’t competing tools — they’re complementary. OneDrive is your personal workspace. SharePoint is your team’s shared workspace. The confusion isn’t a technology problem; it’s a communication problem.
Get the structure right, explain it once, and your team will stop guessing.
Need help getting your SharePoint and OneDrive organized?
We configure document environments that match how your team actually works — so files end up where they belong, and everyone knows where to look.