It is recommended to use centralized user repositories such as AWS Directory Services (Active Directory/SimpleAD), Okta, Azure Active Directory, PingIdentity, OneLogin, to avoid the use of durable credentials such as IAM Users / Access Keys and reduce the risk of compromised credentials and exposed access keys.
Integrating your repository using AWS IAM Identity Center (successor to AWS Single Sign-On) is simple, and provides temporary credentials to users accessing AWS.
If your organization is just starting and you don’t have a repository yet, you can use AWS IAM Identity Center’s internal directory. Using this repository you will still get the benefits of using temporary credentials.
It is also important that the repository is integrated with the human resources management system to propagate employee terminations (either through an identity management system or directly into the centralized authentication repository).
AWS IAM Identity Center (successor to AWS Single Sign-On) is a free AWS service that makes it easy to manage identities across multiple accounts.