Microsoft Dynamics 365 Human Resources HR software review: Flexible, powerful, but definitely not perfect | Tech Radar

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Microsoft Dynamics 365 Human Resources HR software review: Flexible, powerful, but definitely not perfect

It’s one of the biggest names in computing, but should you trust your HR processes to Microsoft?

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It’s a flexible HR hub for Microsoft-first organizations, and it’s got powerful integrations, but its payroll and recruitment options are handled by third-party tools

+Straightforward licensing options and superb support

Straightforward licensing options and superb support

-Best suited to organizations that already use Microsoft

Best suited to organizations that already use Microsoft

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Microsoft is one of the biggest names in computing and software, but Dynamics 365 Human Resources is not one of the company’s most well-known tools, and it’s not as popular in HR circles as solutions from dedicated rivals like SAP, Sage, or ADP.

With such technological pedigree behind it, though, you’d be wise to consider Microsoft’s tool when searching for a new HR solution.

Microsoft Dynamics 365 Human Resources: Plans and pricing

Microsoft is up-front about its pricing for Dynamics 365 Human Resources, which is a pleasing discovery. Not all HR solutions providers are so forthcoming about the financials.

There are no different feature tiers with Dynamics 365 Human Resources – you pay for the product, it integrates with your other Microsoft and third-party solutions, and that’s that. That means you don’t have to worry about missing out on HR functionality you need if you opt for a more affordable product.

Instead, Microsoft’s pricing is divided by user. For every HR professional who wants to use the full capability of the app, you’ll have to pay

Microsoft Dynamics 365 Human Resources: Features

Many of Microsoft’s features focus on improving agility and speed in your HR teams – as with most other HR packages, you get plenty of options to create your own workflows, processes, and automations.

Microsoft Dynamics 365 goes much further than most in this area, too, thanks to the Microsoft Power Platform. It’s a suite of low-code tools, including Power Apps, Power Automate, Power BI, and Copilot Studio, that enable businesses to build custom apps and integrations, analyze data, and create websites without extensive technical knowledge.

By combining Dynamics 365 with Power Platform and Microsoft’s AI features, your HR teams can build their own functionality in the HR system – tailored to your organization and its people. Power Platform supports over 1,000 integrations, which Microsoft calls Connectors. And while this entire system will work more effectively if your organization uses Microsoft tools on a wide scale, many of those connectors are provided by third-party specialists, so you’re not completely restricted.

Get beyond Power Platform and Dynamics 365’s various automation and customization features, and you’ll find a reasonable slate of HR functionality.

Employees can use self-service tools to submit leave requests and centralized employee profiles include career accomplishments, skills, certifications, and more. You can empower staff with training opportunities, performance tracking, and goal-setting.

Automated, trackable team performance and feedback is offered to managers within your business, and you can create compensation plans and self-service benefits packages. That’s not the end of the automation, either, with configurable processes, workflows, and task management supported throughout – and if you want analytics, the app uses embedded tools to provide in-depth data.

Microsoft’s product integrates with key payroll providers like Ceridian Dayforce and ADP Workforce Now, and an API is available, but note that Dynamics 365 doesn’t provide its own payroll functionality. Similarly, Dynamics 365 connects with talent acquisition systems like Linked In Talent Solutions, but this functionality isn’t included in the Microsoft tool natively.

You do get some neat integrations with other Microsoft tools, though, as long as you also have licenses for those. You can visualize HR data with Power BI dashboards, for instance, which is an ideal way to monitor your workforce, spot trends, and identify potential issues. Your employees can also access many HR functions directly in Microsoft Teams.

Dynamics 365 also includes integrations with hundreds of third-party apps, with over 130 available for HR at the time of writing.

There’s no doubt that Dynamics 365 Human Resources is strongest when it’s included as part of a wider Microsoft system, where you’ll be able to properly exploit its integration with other products and the various AI and customization tools delivered through Power Platform.

Negatively, though, if you’re not already integrated with Microsoft, then you’ll have a severely compromised experience with this solution.

Microsoft Dynamics 365 Human Resources: Ease of use

That said, user sentiment and online reviews indicate that the product is easiest to use in organizations that already rely on the Microsoft ecosystem, which is not surprising.

The day-to-day experience for employees is reportedly impressive, with lots of functionality easily available through Microsoft Teams.

The experience has been described as more mixed for HR administrators and managers, with reports of a complex interface, a steep learning curve, and challenging initial setup. Positively, there’s also plenty of talk about the system being powerful and customizable – once you know your way around, managers have been able to deploy robust, effective, and tailored tools throughout their HR systems.

We’ve seen reports of poor functionality and friction caused by reliance on so many third-party integrations – a double-edged sword when stacked alongside the increased functionality and flexibility provided by the large library of potential additions.

Microsoft offers extensive support options for Dynamics 365 Human Resources. If you rely on the standard options included with the product, then you receive plenty of coverage, and you can pay $9 per user per month for Professional Direct Support – an option designed for businesses with continuous operations that need faster response times and access to experts.

Above that tier is Unified Enterprise support, designed for organizations that need end-to-end support across an entire suite of Microsoft technologies. You’ll need to talk to sales to get pricing for that product.

That said, the Standard support option is still comprehensive. HR professionals can access web and phone incident submission, break/fix support, always-on critical incident support, a service dashboard, online training, and potentially response times under one hour.

Upgrade to the Professional Direct package and your issues get prioritized. You can also benefit from service delivery and escalation management, advisory services, monthly reviews, proactive support services, and technical webinars.

And if you want that Unified Enterprise option, you’ll get complete coverage for all of your Microsoft products, an assigned service delivery manager, on-demand service reviews and workshops, remote diagnostics, on-site services, and enhanced solutions.

No matter which support package you go for, it’s a deeply impressive array of options – one of the most comprehensive you’ll find alongside any HR solution.

Microsoft Dynamics 365 Human Resources: Competition

The size and popularity of Microsoft means that Dynamics 365 Human Resources has plenty of strong rivals worth considering, even if you’re already committed to the wider Microsoft ecosystem in other areas of your business.

SAP Success Factors is a good alternative for enterprises that want a powerful, dedicated HR suite that can integrate across a large and complex business, and UKG is particularly capable for organizations that want lots of power and customization around scheduling.

Paylocity should be at the top of your list if you want huge amounts of data alongside both payroll and HR functionality in one solution.

Rippling is one to investigate if you’d like to deploy plenty of automation in your next HR solution, and both Bamboo HR and Hi Bob have great user interfaces that work particularly well for SMBs.

Microsoft Dynamics 365 Human Resources: Final verdict

Microsoft Dynamics 365 Human Resources has significant strengths, most of which rely on its unsurprisingly deep integration with the wider suite of Microsoft solutions.

It’s excellent for workflow automation and customization thanks to tools like Power Platform and Power BI, and its Teams employee self-service options are convenient.

Its core HR capabilities are solid, and it’s got some of the best support options available for any HR solution.

It’s missing payroll and recruiting tools, though, and its integration library can be tricky – it introduces functionality but could create an operational risk.

If you need flexibility and analytics from your HR suite and you’re already invested in the Microsoft ecosystem, then Dynamics 365 Human Resources is worth consideration. But if you’re not already wedded to Microsoft, we recommend investing elsewhere.

Mike has worked as a technology journalist for more than a decade and has written for most of the UK’s big technology titles alongside numerous global outlets. He loves PCs, laptops and any new hardware, and covers everything from the latest business trends to high-end gaming gear.

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• Microsoft Dynamics 365 Human Resources HR software review: Flexible, powerful, but definitely not perfect

• It’s one of the biggest names in computing, but should you trust your HR processes to Microsoft