Now why don't these companies keep the drives in-house instead of destroying? That, I don't know. But aside that, regarding the encryption... If you used the drive without encryption at any time, then its possible to recover the unencrypted data. You'd need to guarantee that your drives were *always* used with encryption from the start to end. And that's a hard guarantee. So yeah, if they were leaving the org, I'd de…
Decommissioned hardware that is put in storage inevitably walks home with an enterprising employee to whom the risks from the business perspective are simply not a factor.