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As part of the 2021 release wave 2 plan, Microsoft will be bringing Dynamics 365 (D365) Human Resources into the D365 Finance and Operations family of applications. So, if you’ve been using D365 Human Resources, the legacy HR module in the Finance and Operations app or both, this update will impact you.

Here’s how and what you can do about it…

Although the specifics will depend on your current setup, here are the general changes you could see:

  • If you’ve been using the legacy HR module, you’ll gain additional functionalities of D365 Human Resources - such as checklists for onboarding and offboarding staff, leave and absence management and more
  • If you’ve already been using D365 Human Resources, you’ll also benefit from additional capabilities, thanks to the F&O integration - for example, access to the shared services and tooling that comes with Finance and Operations
  • If you’d been using a mixture of the legacy HR module and D365 Human Resources, you no longer need to integrate your data. That data can be seamlessly shared across the two platforms

What are my next steps?

Microsoft has already defined the migration paths for all the above scenarios. The path that’s most appropriate for your business will depend on your setup.

  • If you’ve been using the legacy HR module, you won’t need to migrate. D365 Human Resources and the advanced functionalities it brings will automatically be added to your Finance and Operations apps. Preview them from August 2021 and in general release in January 2022
  • If you’ve been using D365 Human Resources, you’ll need to migrate the system to the Finance and Operations platform. The process will be mostly automatic, but Microsoft will provide tooling* to help you validate the migration
  • If you’ve been following a hybrid approach, this may add an additional layer of complexity. After all, two systems will be merged! However, Microsoft’s tooling* will help you manage this and combat any conflicts that may arise

*Microsoft’s tooling will be available mid-2022. As of writing, there isn’t a set deadline for when the migration should be completed but we estimate it will be at least a year after the tooling is released to the public.

How much will D365 Human Resources migration cost my organisation?

If you’re already on D365 Human Resources, you won’t need to change licences. However, if you’re licensed for the HR legacy module, you will need to migrate to the D365 Human Resources licences after February 2025.

There will also be an ‘attach’ version of the D365 Human Resource licences.
Additional things to note:

  • If you have a sandbox environment for D365 Human Resources, it will be migrated to Finance and Operations apps Tier 2 sandbox at no additional cost
  • Access to the Employee self-service feature will be covered by the Human Resources self-service, Team member and Operations activity licences

Is there anything else I need to know?

We have three further points to add:

  1. Be aware of who can access your sensitive HR data - if you’re a hybrid customer, keep in mind that potentially sensitive HR information will be migrated into Finance and Operations. So, test all your security roles and check that only the people who need to access certain information can do so
  2. Test your custom and third-party integrations - even if they’ve been developed using Microsoft software e.g., Power Apps, make sure you test these custom applications thoroughly
  3. D365 Human Resources will no longer be a SaaS platform - after the migration, the Human Resources software will no longer be SaaS so you will be responsible for rolling out updates onto the platform

If you have any further questions, concerns or you just want to learn more about Microsoft’s 2021 release wave 2 plan, please don’t hesitate to reach out to Columbus today. One of our expert team of consultants and advisors are more than happy to help.

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