This topic outlines what happens with regards to passwords when a user is added to the system via the Data Load Wizard. See Load Data Overview.
When an administrator loads users to the system via the Data Load Wizard, new users have their password set per the default password and Password Preferences. Please note that this also impacts users who were added to the system before the rollout of the Default Password in Password Preferences.
Administrators are responsible for informing users of their initial passwords outside of the system. This communication may be done in person, over the phone, or through an external email system. Users should be aware that they will always be prompted to change their initial password upon logging in to the system for the first time.
Users that are added to the system via a data feed do not receive the "New User Record Created (Via Add User Page)" email.