Microsoft Dynamics 365 Human Resources

Modules & Capabilities Overview • June 2026

A unified system of record for all employee information — profiles, positions, org structures, and lifecycle events from hire through separation.

CapabilityWhat It Does
Employee Profiles & Records Maintain complete employee records including personal details, employment history, education, certifications, and emergency contacts
Position & Job Management Define organizational positions with reporting relationships, job families, and compensation grade assignments for workforce planning
Organizational Hierarchy Visualize and manage org charts, departments, and cost center structures with effective-date change management
Employee Self-Service Empower employees to view pay stubs, update personal information, request time off, and complete onboarding tasks independently
Manager Self-Service Give managers a unified view of their team’s leave, performance, compensation, and open positions with quick action capabilities

Flexible benefits administration and compensation management — from plan enrollment and life events through salary structures and payroll integration.

CapabilityWhat It Does
Benefits Administration Configure and manage health, dental, vision, life, and voluntary benefit plans with tiered coverage options and eligibility rules
Compensation Plans Define fixed and variable compensation structures with salary bands, merit matrices, and budget-driven compensation cycles
Open Enrollment Run guided annual enrollment and life-event enrollment workflows that route employees through benefit selections with decision support
Life Event Processing Automatically trigger benefit change eligibility for qualifying life events like marriage, divorce, birth, and adoption
Payroll Integration Expose HR data through a payroll API that connects Dynamics 365 HR to third-party payroll providers for seamless data synchronization

Configurable leave management — from accrual plans and time-off requests through absence tracking, FMLA compliance, and calendar integration.

CapabilityWhat It Does
Leave Plans & Accruals Define leave types with flexible accrual schedules, carryover rules, and eligibility policies aligned to company and legal requirements
Time-Off Requests & Approvals Employees request time off via self-service with automated routing to managers and HR, with real-time balance visibility
Absence & FMLA Management Track intermittent and continuous leave under FMLA, ADA, and other statutory requirements with built-in compliance workflows
Leave Calendar Integration Sync approved time off to Outlook calendars and display team absences on a shared calendar for managers and HR
Absence Analytics Analyze absence trends, identify patterns, and track leave liability to inform workforce planning and policy decisions

Streamlined recruiting — from job posting and candidate tracking through offer management and structured onboarding programs.

CapabilityWhat It Does
Recruitment & Job Postings Create job requisitions, post to job boards, and manage candidates through a configurable applicant tracking workflow
Candidate Management Track candidates from application through interview, offer, and hire with collaboration tools for hiring teams and feedback capture
Interview Scheduling Coordinate interview schedules between candidates and interviewers with Teams integration and automated calendar invitations
Offer Management Generate and route offers for approval, track acceptance, and trigger onboarding workflows automatically upon offer acceptance
Structured Onboarding Create personalized onboarding checklists and task assignments that guide new hires and HR through the first 90 days

Continuous employee development — from skills tracking and training courses through goal setting and structured performance reviews.

CapabilityWhat It Does
Skills & Competency Management Define skill frameworks, track employee competencies, and identify skill gaps to inform development plans and succession planning
Training & Courses Manage training catalog, employee enrollment, course completions, and certifications with integration to LinkedIn Learning
Performance Reviews Run configurable performance review cycles with self-assessment, manager feedback, calibration, and rating workflows
Goal Management Set individual and team goals aligned to organizational objectives with progress tracking and check-in conversations
Certifications & Compliance Training Track professional certifications, mandatory training completions, and expiry dates with automated renewal reminders

Workforce intelligence — headcount, attrition, diversity, compensation equity, and leave analytics with Power BI and embedded AI.

CapabilityWhat It Does
Workforce Analytics Pre-built dashboards tracking headcount, turnover, tenure, and hire trends with drill-through to individual employee records
Attrition & Retention Identify at-risk employees using predictive models and analyze voluntary/involuntary turnover by department, role, and tenure band
Compensation Equity Analysis Analyze pay equity across gender, ethnicity, and other dimensions to identify gaps and support fair compensation decisions
Leave & Absence Analytics Track absence rates, leave liability, and usage patterns by team and location to inform staffing and policy adjustments
Power BI Integration Connect HR data to Power BI for custom workforce reports, executive dashboards, and strategic human capital analytics

Product Roadmap

2026 Release Wave 1 (Apr – Sep 2026) — Source: Microsoft Learn Release Plans

FeatureCategoryGA Date
Enable HR teams to retire outdated jobs and job titles Administration Released Jun 2026
Streamline benefits enrollment process Benefits Sep 2026
Expand hiring by integrating with external agencies Talent Acquisition Sep 2026
Automate HR leave sync for accurate project planning and tracking Leave & Absence Sep 2026
Drive recruiting efficiency and candidate satisfaction with offer management Talent Acquisition Sep 2026
Post job ads to LinkedIn to reach top talent Talent Acquisition Sep 2026

Prior Releases

Source: Dynamics 365 Release Plans — Microsoft Learn

2025 Release Wave 2 (Oct 2025 – Mar 2026)
FeatureCategoryGA Date
Streamline interview scheduling capabilities Talent Acquisition Jan 27, 2026
Enable HR teams to retire outdated jobs and job titles Administration Oct 24, 2025
2025 Release Wave 1 (Apr 2025 – Sep 2025)
2024 Release Wave 2 (Oct 2024 – Mar 2025)
2024 Release Wave 1 (Apr 2024 – Sep 2024)