Microsoft Enters Core HR Market with Dynamics 365 Human Resources

Microsoft recently announced it will be expanding the functionality of Dynamics 365 Talent into an updated core HRMS technology. 

According to Laurel Reitman, general manager of Dynamics 365 Human Resources, this expanded solution will provide features that focus on the employee experience, people operations, organizational agility, and workforce data insights.

Microsoft has taken a few concerted steps over the last three years that have resulted in its formal movement into the HCM space. First, it acquired LinkedIn in 2016 for $26.2 billion. Next, Microsoft expanded Dynamics 365 ERP/CRM to include HCM-based apps. Microsoft's first HCM application, Dynamics 365 for Talent, integrated with LinkedIn Recruiter to provide companies with customizable and collaborative recruiting features as well as an engaging candidate experience. The company went on to add two more HCM apps: Dynamics 365 Talent Attract and Dynamics 365 Talent Onboard. And finally, Microsoft procured the rights to FourVision and Elevate HR to improve HR operations.

Although the $50 billion core HR software market is extremely crowded, Josh Bersin believes Microsoft is positioned well to make its mark. Combining Microsoft’s infrastructure with LinkedIn Talent Hub as its ATS and LinkedIn Learning as its training eLearning solution, Dynamics 365 Human Resources will be a comprehensive and formidable solution. 

As of Feb. 1, 2020, all current Core HR technologies will be renamed Dynamics 365 Human Resources, and in early 2020 new features (added from the recent procurement of FourVision and Elevate HR) will include time & attendance, benefits, and leave management. But this isn’t the only change customers can expect in the near future. Microsoft will be retiring Dynamics 365 Talent Attract and Dynamics 365 Talent Onboard applications as of Feb. 1, 2022.

According to Reitman, “As we focus on the capabilities for Dynamics 365 Human Resources, we will be transitioning away from development efforts around talent acquisition specifically and our Dynamics 365 Talent Attract and Dynamics 365 Talent Onboard applications will be retired. To ensure customers have time to plan, the Attract and Onboard services will continue to be available until Feb. 1, 2022.”