It gives added incentive to the company to make sure all of their internal passwords are managed via SSO so the users don’t continue to use a password on non-integrated systems after it’s rotated centrally.
And as long as employees are warned in advance, they should be aware of the risk of re-using passwords, which already exists today. If anything, this highlights the fact that if employees are using their company password for some other service, they’re placing their employer at risk.