How to Run Effective Phishing Simulations at Your Company

You can teach employees everything there is to know about spotting phishing emails, but until they face a realistic simulation in their own inbox, you will never truly know whether the training stuck. Phishing simulations are the bridge between knowledge and behavior — they test whether employees can apply what they have learned when it matters most.

flowchart TD
    A["Plan Simulation"] --> B["Choose Templates"]
    B --> C["Send Test Emails"]
    C --> D["Track Results"]
    D --> E["Provide Feedback"]
    E --> F["Retrain if Needed"]
    F --> A
  

But here is the thing: poorly designed phishing simulations can do more harm than good. They can erode trust, create resentment, and give leadership a false sense of security. Done right, however, they are one of the most powerful tools in your cybersecurity training arsenal. In this guide, we will walk you through how to plan, execute, and learn from phishing simulations that actually make your organization safer.

Why Phishing Simulations Matter

Cybersecurity awareness training teaches employees what phishing looks like. Phishing simulations test whether they can recognize it when it shows up unannounced. The difference is critical — it is the difference between studying for a test and taking the test in real-world conditions.

There are several compelling reasons to include simulations in your security program:

• Measurable baseline: You cannot improve what you cannot measure. Simulations give you hard data on how many employees click malicious links, open attachments, or submit credentials.
• Behavioral reinforcement: People learn best from experience. An employee who falls for a simulation and gets an immediate training moment is far more likely to remember the lesson than one who only watched a video.
• Compliance and insurance: Many cyber insurance providers and compliance frameworks now require regular phishing simulations as part of an acceptable security awareness program.
• Identify high-risk individuals: Simulations reveal which employees or departments need additional training, allowing you to target your efforts effectively.
• Track improvement over time: Running simulations regularly lets you chart your organization's progress and demonstrate ROI on your training investment.

Planning Your First Simulation

Set Clear Objectives

Before you send a single simulated phish, define what you want to achieve. Common objectives include:

• Establishing a baseline click rate for the organization
• Testing the effectiveness of recent training
• Measuring reporting rates (how many employees flag the email versus just ignoring or clicking it)
• Identifying departments or roles that need targeted training
• Generating data for a cyber insurance application or renewal

Get Leadership Buy-In

Phishing simulations require executive support, and leadership should be included in the simulations themselves. If the C-suite is excluded, you send the message that security is a concern only for lower-level employees. Make sure leadership understands the purpose: this is not about catching people doing wrong — it is about strengthening the entire organization.

Communicate the Program (But Not the Timing)

Let your employees know that phishing simulations are part of your security program. This is not about deception — it is about preparation. However, do not tell them exactly when simulations will happen. The goal is to create a culture of healthy skepticism, not a week of heightened awareness followed by months of complacency.

Tell employees that simulations will happen. Do not tell them when. The element of surprise is what makes simulations valuable as a training tool.

Designing Effective Simulation Emails

Start Simple, Then Escalate

Your first simulation should not be a masterfully crafted spear phish that even security professionals would struggle to identify. Start with moderate-difficulty emails that have identifiable red flags: a slightly misspelled domain, generic greeting, mild urgency. As your team improves, gradually increase the sophistication.

A good progression looks like this:

1. Round 1 — Basic: Generic phishing with obvious red flags (misspellings, suspicious sender, generic greeting).
2. Round 2 — Intermediate: Brand-impersonation emails that look like legitimate services (Microsoft, shipping companies, HR systems).
3. Round 3 — Advanced: Spear phishing tailored to your organization, referencing real projects, tools, or events.
4. Round 4 — Expert: Multi-channel attacks combining email with text or phone follow-ups.

Use Realistic Scenarios

The most effective simulations mirror threats your employees actually face. Consider scenarios based on:

• Password reset notifications from tools your company uses
• Fake invoices or purchase orders
• HR announcements (benefits changes, policy updates, holiday schedule)
• IT maintenance notifications
• Package delivery alerts
• Shared document notifications (Google Drive, OneDrive, Dropbox)

Vary Your Tactics

Do not send the same type of simulation every time. Rotate between link-click simulations, credential-harvesting simulations, and attachment-based simulations. This prevents employees from developing pattern recognition for your simulations rather than for real threats.

What to Measure and How to Measure It

Key Metrics

Track these metrics for every simulation campaign:

• Click rate: The percentage of recipients who clicked the link or opened the attachment. This is your primary vulnerability indicator.
• Credential submission rate: Of those who clicked, how many entered their username and password on the fake landing page. This represents the most dangerous behavior.
• Report rate: The percentage of recipients who reported the email as suspicious. This is arguably the most important metric because it measures the behavior you actually want.
• Time to click: How quickly employees clicked after receiving the email. Instant clicks suggest no evaluation process at all.
• Time to report: How quickly employees reported the simulation. Fast reporting in a real scenario means faster incident response.

Benchmarking

Industry averages for first-time phishing simulations typically show click rates between 20 and 35 percent. After regular training and simulations, mature programs bring this down to under 5 percent. Do not panic if your first simulation shows high click rates — that is the entire point of establishing a baseline.

A high click rate on your first simulation is not a failure — it is a discovery. It tells you exactly where to focus your training efforts.

The Training Moment: What Happens After a Click

The most critical part of a phishing simulation is what happens immediately after an employee clicks. This is the "teachable moment" — the window when the employee is most receptive to learning.

Immediate Feedback

When an employee clicks a simulated phishing link, they should be redirected to a training page that:

1. Clearly explains that this was a simulation
2. Shows the specific email they received and highlights the red flags they missed
3. Provides brief, actionable tips for identifying similar threats in the future
4. Reassures them that this is a learning exercise, not a punitive one

Never Punish, Always Educate

This cannot be stressed enough: phishing simulations should never be punitive. If employees fear punishment for clicking a simulation, three things happen:

• They stop reporting real phishing emails because they are afraid it might be another test.
• They resent the security team and become less cooperative on all security matters.
• They hide actual security incidents instead of reporting them quickly.

The only exception is for employees who repeatedly fail simulations despite targeted training. In those cases, a private conversation with their manager about additional support is appropriate — but even then, the framing should be supportive, not punitive.

Common Mistakes to Avoid

• Running simulations too rarely: Once a year is not enough. Quarterly simulations are the minimum; monthly is ideal for building lasting behavioral change.
• Making simulations too easy: If everyone passes every time, your simulations are not realistic. Challenge your team with increasingly sophisticated scenarios.
• Making simulations too hard too fast: Starting with nation-state-level spear phishing will produce a 90 percent click rate and demoralize your entire team.
• Only measuring clicks: Click rate tells part of the story. Report rate tells the rest. A team that clicks but reports quickly is in much better shape than a team that clicks and stays silent.
• Excluding leadership: If executives are not included, you miss the employees most likely to be targeted by whaling attacks.
• Using simulations as a gotcha: The purpose is to train, not to trick. If employees feel ambushed, the program will backfire.
• Not following up with training: Simulations without accompanying training are just tests. The value comes from the learning that follows.

Reporting Results to Leadership

Leadership wants to see progress, and phishing simulation data tells a compelling story when presented correctly. Focus your reports on:

• Trend lines: Show how click rates have decreased and report rates have increased over time.
• Department comparisons: Identify which teams are improving and which need additional support.
• Risk reduction: Translate the data into business terms. A 20 percent reduction in click rate means 20 percent fewer employees likely to fall for a real attack.
• Insurance and compliance value: Highlight how simulation data supports your cyber insurance application and any compliance requirements.

What to Do This Week

Phishing simulations are not optional extras — they are essential components of any effective cybersecurity awareness program. Here is how to get started:

1. Choose a simulation platform. Cyber Learning Hub includes built-in phishing simulations, but there are also standalone tools available. The key is choosing something that integrates with your training program.
2. Get executive buy-in. Present the business case: simulations reduce risk, support insurance applications, and provide measurable ROI.
3. Announce the program to employees. Frame it as a positive investment in their skills, not a surveillance tool.
4. Run a baseline simulation. Start with a moderate-difficulty email and measure clicks, credential submissions, and reports.
5. Deliver targeted training based on results. Focus additional resources on employees and departments that need the most help.
6. Schedule regular simulations. Set a cadence of at least quarterly, with plans to increase frequency as your program matures.
7. Track and celebrate improvement. Share progress with the team. Recognize departments that show significant improvement.

The best phishing simulation program is one that makes employees feel empowered, not embarrassed. When your team starts reporting suspicious emails faster than they click them, you will know your program is working.