This sounds like you are trying to be compliant with rule 5.1.1 - Secure User's Home Folder, of the CIS Security Guidelines. Please note: user accounts must be standard as admins will have access to sudo and be able to circumvent the permissions restrictions. Here is the guideline. Reference the latest CIS Benchmark for more details.
The system MUST be configured to prevent access to other user's home folders.
By default, macOS allows all valid users into the top level of every other user's home folder and restricts access to the Apple default folders within. Another user on the same system can see you have a "Documents" folder but cannot see inside it. This configuration does work for personal file sharing but can expose user files to standard accounts on the system. The best parallel for Enterprise environments is that everyone who has a Dropbox account can see everything that is at the top level but can't see your pictures. Similarly with macOS, users can see into every new Directory that is created because of the default permissions. Home folders should be restricted to access only by the user. Sharing should be used on dedicated servers or cloud instances that are managing access controls. Some environments may encounter problems if execute rights are removed as well as read and write. Either no access or execute only for group or others is acceptable.
The easiest way to implement this is with an MDM. If you have Jamf Pro, enable the Compliance module and set this rule to be enforced. If you do not have Jamf, but you have an MDM, you can create a recurring policy to enforce this on a periodic schedule. Alternatively, if you are able, you can use watched paths though launchd or even watched folder via AppleScript (not recommended as it is more complicated) to monitor the Users folder.
Here is the main issue. Apple's default folders (Desktop, Documents, Downloads, Library, Music, Movies, and Pictures are set to POSIX permissions 700 (rwx------), allowing only the owner to open and view. Ah, but if a user creates a new folder in the home folder, that folder will be created with the standard POSIX permissions of 755 (rwxr-xr-x), allowing group and other read and access rights. Here is an example.
John and Mary are sharing a machine and each has a home folder and a unique account. Mary creates a folder titled HR at the root of her home folder. If no action is taken, then John will be able to see, open, and copy files inside the HR directory.
The CIS guide provides a bash script to automate the management of this:
IFS=$'\n'
for userDirs in $( /usr/bin/find /System/Volumes/Data/Users -mindepth 1 -maxdepth 1 -type d ! \( -perm 700 -o -perm 711 \) | /usr/bin/grep -v "Shared" | /usr/bin/grep -v "Guest" ); do
/bin/chmod og-rwx "$userDirs"
done
unset IFS
But, as noted, this needs to be automated to handle the actions of the future. If you run this script today, it will impact the folders that are present today. Thus, if Mary creates a folder called Salaries tomorrow, that folder will be accessible to John until the script runs again. The CIS Benchmark provides the solution but does not provide the automation process. Again, if you do not have an MDM, this becomes more complicated as you need to implement manually on each machine. You can install the script and then either create a launch deamon or cron entry to have it repeat at a fixed interval.
Hope this is helpful.