Create a New User from the Site Actions Menu

Applies To Version(s): 3, 3.5 & 3.7

Go to Site Actions > Create a New User
Input the employee name, user name, email and password, and click Create User Account. This will take you to the Profiles - Users: New Item page.
Fill in various pieces of information as you require. Note that all of the fields on this page are optional by default. Once you have completed the Profiles - Users: New Item, click Okay. This will take you to the Add Users to Groups page
Depending on the user's role in your organization, you'll select which group(s) you need to add this user to. By default, make sure to add every user to the Staff group. Once you've added the user to the appropriate group(s), click Done.

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