Merging of HR offerings brings capabilities together for customers

It's time for us to bring all new and future HR capabilities and enhancements within Dynamics 365 Human Resources to all our customers.

We currently have two separate sets of human resources capabilities on two different infrastructures within Dynamics 365:

• Dynamics 365 Human Resources, which is a complete stand-alone application running on an independent infrastructure. Our customers use this application to increase organizational agility and get workforce insights. All investments over the last three years have been focused on this application.
• The HR module, which is a legacy set of capabilities that was previously part of our Unified Operations licensing bundle. Our customers received these HR capabilities as part of Dynamics 365 Finance or Dynamics 365 Supply Chain Management. We have not been adding capabilities or enhancements to this module. The HR module runs on the same infrastructure as the other applications within our operations portfolio, which was previously named Finance and Operations.

As you can imagine, having two ways to access HR capabilities creates a lot of confusion. It also prevents our customers from experiencing the benefits that each set of capabilities offers.

By merging these capabilities onto the same infrastructure, our customers will see:

• All the enhancements that we have added over the last three years, including improved leave and absence, benefit management, and reporting.
• Improved extensibility through the Microsoft Power Platform and the ability to extend business logic to personalize screens and forms.
• Improved deployment, updates, and maintenance with consistency in terms of Application Life Cycle Management, Lifecycle Services, Geographic availability, and more.
• More technology innovation within the roadmap, as our engineering team now can utilize shared services, tooling, and reduce platform costs.

Dynamics 365 Human Resources will continue to be licensed and sold as a stand-alone application. With the merge, it will tap into the power of the Dynamics 365 shared infrastructure, the Power Platform, and the Dataverse.

This transition will impact customers that are currently running Dynamics 365 Human Resources and those that are using the HR module.

Here are some frequently asked questions and answers to help with the transition.

When will the Dynamics 365 Human Resources infrastructure merge be completed?

The infrastructure merge will roll out in phases to better support all customers and provide time for transition planning. You will see new capabilities begin to roll out in the 2021 Wave 2 release. For more details, see the Dynamics 365 Human Resources 2021 release wave 2 plan. These phases will align with the version service updates, which start with the One Version service updates that start as a preview in December 2021. The merge will be complete in the 2022 Wave 1 release. (These dates are subject to change, so refer to the release plans for the most up-to-date information.)

When should my organization transition into the new infrastructure?

The transition for each company will depend on your current configuration and readiness to move to the new infrastructure. We recommend working with your business partner to determine the best path forward for your company.

• Organizations that use the HR module will receive new functionality as part of the regular One Version update process. Features are planned to become generally available beginning in January 2022 (dates are subject to change, so refer to the release plans for the most up-to-date information).
• Organizations using Dynamics 365 Human Resources will have access to migration tools to complete the infrastructure merge. Please check the release plans regularly to get up-to-date information on when these tools will be available. We will work with our customers to make the transition without an interruption in service. Customers will need to make the transition 12-18 months from when the migration tooling is available.
• Organizations that use both Dynamics 365 Human Resources and the HR module will also need to use the migration tooling.

Will I lose any features or capabilities that I currently use?

Our objective is to minimize the impact of this transition for our customers, and we will not be removing any features. There will be functional parity between Dynamics 365 Human Resources and the HR module. In cases where the feature exists in both infrastructures, the Dynamics 365 Human Resources experience will be used.

Will the experience change for my users?

New capabilities will be managed through Feature management. This will allow our customers to decide which features they want to utilize. In some cases, we may need to change the experience; however, in those cases, documentation will be provided.

Are there any licensing changes or minimum number of user requirements?

Customers that have purchased Dynamics 365 Human Resources will not require license changes. The additional sandbox stock-keeping unit (SKU) that was specific for Human Resources will no longer be applicable. Instead, customers can choose to buy a Finance and Operations apps Tier 2 sandbox at a lower cost. Existing customers who have purchased a Human Resources sandbox will be migrated to a Finance and Operations apps Tier 2 sandbox at no additional cost. We will continue to require five minimum users for Dynamics 365 Human Resources.

Customers using the HR module will be required to purchase licenses for Dynamics 365 Human Resources starting in February 2025. These customers will get the new functionality as part of their current contract until February 2025 or until the current licensing agreement expires, whichever is earlier. Customers can also choose to move to Dynamics 365 Human Resources licenses earlier if it helps them achieve better cost savings.

What training and resources will be available to help with the migration process?

Full documentation will be provided to describe each step of the migration process in detail. We will also determine if any additional training resources, such as videos and workshops, are needed to help our partners and customers with a smooth transition to the new infrastructure.

Next steps

We recommend that you work with your partner to determine a transition plan that works best for your company. Our objective is to provide customers with the time needed for a smooth transition. You can also email specific questions to the Microsoft Team.

• Learn more about Microsoft Dynamics 365 Human Resources
• Dynamics 365 Human Resources 2021 release wave 2 plan

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