Dynamics 365 Business Central: Human Resources

In this post you will find out what the possibilities of Human Resource Management are in Dynamics 365, presented in two topics: standard HRM in Business Central & advanced HRM with Dynamics 365 Human Resources.

Dynamics 365 Business Central

As part of the Dynamics 365 suite, Microsoft Dynamics 365 Business Central is the core Enterprise Resource Planning (ERP) solution, which is a comprehensive business solution designed for small and medium companies to optimise business processes, such as finance, procurement, sales, production/assembly, warehousing, projects etc.

For more information about Business Central in general, visit the Orbid site on Business Central

On the Orbid webpage of Dynamics 365 you will find and overview of the applications within the Dynamics 365 suite.

Standard HRM in Dynamics 365 Business Central

Business Central offers a basic human resources module for all the basic information of your employees and absence registration.


Business Central stores all the information of your employees: the basic info of your employee, a profile picture, their address(-es) & relatives, fringe benefits that the employee receives, their qualifications and even confidential information as salary, insurance, etc.

Absence registration

In case an employee is ill, absent, on leave or has a recuperation of overtime then this is recorded in Business Central as well. With a date of absence, an hour registration and a cause of Absence. Additionally, if Projects are used within Business Central, project timesheets can be used to register (and approve) leave and absence.


Business Central has 13 reports in the HR module. Some of them handle the information of employees, a list of addresses, birthday calendar, all the confidential information of the employees, nametags with information, qualifications of your employees, …

Others handle the absence registration; this can be shown by cause of absence for all employees, for all causes of absence per employee or for all causes of absence for all employees by date.

All these reports can be exported to Excel to make your own reports.


All of the above can only function properly after defining some basic information such as the causes of absence / inactivity (course, on leave, pregnancy, …), the grounds of termination, unions, fringe benefits, qualifications & confidential information for employees. Once you have these all set up, they can be applied to employees.

Advanced HRM with Dynamics 365 Human Resources

Dynamics 365 Human Resources

Dynamics 365 Human Resources is a separate application which can be integrated with Business Central to cover more HRM processes.

Microsoft, Watch overview 2020

Main features

Main features of Dynamics 365 for Human Resources are:

  • People: gives the employees the possibility to find colleagues, request absence for themselves or their colleagues.
  • Personnel management: hire candidates, view recent starters/leavers, see open positions & employee changes.
  • Leave and absence is more or less the same as in Business Central since it has the same functionalities.
  • Benefit management: more detailed overview of all the possible benefits like a company car, company phone, which you can assign to an employee.
  • Compensation management: you can create different payment levels, fixed and variable plans for bonusses or shares.
  • Employee development: more than only recording the qualifications and skills of the employee you can manage the performance of the employee, set goals & map the skills of the employee(s).
  • Learning: mostly insights of the internal courses in your company and their attendance.

The former Dynamics 365 for Talent has changed into Human Resources, effective in February 2020. Which focuses less on attracting and hiring talent but more on core human resources. Following two former services from Talent: Attract & Onboard will be discontinued from 2022, and will be transitioned to a comparable solution, LinkedIn Talent Hub. This is a combination of LinkedIn Recruiter and Jobs into a new ATS (Applicant Tracking System) platform that lets you source, manage and hire -all in one place. See more on https://business.linkedin.com/talent-solutions/talent-hub.

If you use Office 365 with MS Teams, you can also activate the Dynamics 365 Human Resources app within MS Teams, currently in preview, for:

  • Simple submission of leave requests
  • Easily view current leave balances
  • Track the progress of leave approvals
  • Save draft requests to edit and submit them later
  • Tight integration with Human Resources, with configurable approval workflows
  • Single sign in so you don’t have to enter your credentials in Teams
Microsoft Docs, Human resources app in Teams

You can quickly access all your leave balances right in MS Teams, where you already do so much of your collaboration work. When you’re ready to take time off, just tell the bot to start a leave request for you. The app is tightly integrated with Human Resources, so you can view the progress of your leave request in real time.

The bot makes it easy to view time-off balances, show details about a specific leave type, and submit time off. Just tell it what you want to do by typing requests like:

  • View balances
  • View balance for vacation
  • I want to take vacation in 2 weeks

If you’re not sure yet about the dates you plan to take off, you can start a request, save it as a draft, and go back and change it later. The Time off tab provides you with an overall view of your leave balances, upcoming time off, leave history, and draft requests.

For setting up your MS Dynamics 365 Human Resources in Teams follow the information on: https://docs.microsoft.com/en-us/dynamics365/human-resources/hr-admin-teams-leave-app

What’s coming?

October 2020 and March 2021 releases promise improvements and new features in following areas:

  • Employee and manager self-service
  • Automated address validation
  • Azure AD integration and other integrations (e.g. payroll providers, LinkedIn Talent Hub etc.)
  • Leave and absence (e.g. cross-company view, integration with MS Outlook calendar etc.)
  • Organization and personnel management
  • performance management
  • Reporting and analytics (e.g. create customized reports)
Microsoft Docs, enable simplified integration with payroll providers Phase 1

Standard Business Central offers Human Resource Management (HRM) functionality out-of-the box for relevant employee information and absence registration. If you want more, you can choose to extend this functionality with Dynamics 365 Human Resources (former Dynamics 365 for Talent).

Combining both will allow you to cover all HRM processes, from attracting talent until employee leave.

Jelle Vanthuyne – Business Analyst Orbid

For more information visit: https://docs.microsoft.com/en-us/dynamics365-release-plan/2020wave2/human-resources/dynamics365-human-resources/planned-features

Print Friendly, PDF & Email

2 comments on “Dynamics 365 Business Central: Human Resources”

  1. Jim McCann says:


    If you offer implementation services for Dynamics 365 Human Resources (former Dynamics 365 for Talent) for a NYC based Dynamics partner, please advise via email.

  2. Laurent says:


    Is Dyn365 HR working natively with Dy365 Business Central HR features ?


Leave a Reply

Your email address will not be published. Required fields are marked *