Dynamics 365: The Little HRIS that Could

When shopping around for a system to manage your HR data and processes, you will want to primarily consider pricing, security, integration, and how well the software handles your HR business functions. Here are some main HR process considerations that I am sure you can agree are deal-makers or deal-breakers:

• Recruitment
• Employee Self Service
• Workflow and Checklists
• Performance Review
• Reports & Analytics

During the 2016 AXUG Summit in Tampa, Microsoft provided guidance on the future of Dynamics AX (as Dynamics 365 for Operations), and specifically for this topic, how close the Human Resources module is to becoming a serious HRIS contender. Historically, HR in Dynamics AX was the “little HRIS that could”, but it appears that new features, the Azure infrastructure, and a unified vision elevates Dynamics 365 into the HRIS vendor playing field. Let’s take a quick look at where it currently sits as of the Fall 2016 release of Dynamics AX.

Recruitment: The applicant inbox has been redesigned and includes the ability to attach documents, such as PDF resume or cover letter submitted via word document. Amazingly, AX 2012 did not have this ability, as you could only submit resumes via text.

Single Login: With the ERP and HRIS using Azure Active Directory, employees can now access their self-service portal and the rest of their apps, including Office 365 and Power BI, from the same login.

Workspaces: There are some smart-looking workspaces for HR included in the workspaces, particularly the Employee Self Service Portal and the Personnel Management Portal for HR managers. Manager and Recruitment workspaces are also included. These workspaces are mobile-optimized, and can be fully customized by the user, a feature that is not available for some of the dominant HRIS systems.

Workflow Approvals: There were only a few workflows around Personnel Actions available in Dynamics AX 2012.In the Fall release of Dynamics AX, HR workflows are included for most key HR functions, moving HR data management to employees and managers, with approval situated with the HR practitioner. Checklists for onboarding and off boarding are not included as of yet, but are on the horizon for future releases.

Power BI Content Packs: There will be multiple content packs for Power BI thatwill allow live data insights for Human Resources. Power BI can be served by the HR data entities, allowing you to create custom reports and dashboards. The Power BI content will include:

• Headcount, Attrition, and Position metrics
• Benefit plan analysis
• Applicant analysis
• Competency and skill analysis
• And much more

Power BI is a potential game changer for Dynamics 365 HR users. For years, HR managers have been looking to move past HR data management, and scrapping together documents for compliance and internal HR processes. The additional workflows and self-service portal reduce HR data management time, and Power BI enables the HR practitioner to engage in strategic HR planning and management.

Performance Management: Dynamics never had a true performance management capability, and you would have had to cobble together some semblance of performance reviews from discussions, goals, and questionnaires. Now, performance reviews are possible with performance journals that hold the goals and activities for a company, department, or employee. These performance journals can be generated based on templates and evaluated based on a specific frequency of review such asweekly one-on-one meetings or quarterly and annual performance reviews.  Goals can be evaluated qualitatively or with metrics. In addition to goals, competency attainment can be evaluated in the performance journal period. Peers can also give kudos to other employees as “Praise”, which can feed into the performance review. Outlook 365 integration is still yet to come, for review meeting scheduling.

Other: The Payroll, ACA reporting, and FMLA leave capabilities in AX 2012 are brought forward into the new Dynamics AX, pretty much “as-is.” Additional details about new features are released very frequently, from the source.

Dynamics AX does not yet include Absence Management, but will be included in future release. Microsoft has indicated a particularly exciting piece of information: Learning and Development is on hold, but LinkedIn is being investigated as to how it can be leveraged to build a functional LMS system as part of Dynamics AX HR functionality. This is also true of candidate management and job posting functionality. The move to integrate LinkedIn and Lynda.com would launch Dynamics into becoming a serious contender as a full HRIS, recruitment management, and learning management software. It just has not happened yet. The important part to notice here is that Microsoft’s strategy for Human Resources in Dynamics AX revolves around continuous improvement and direct feedback – integration of third party applications and making tweaks to the user interface based on what we find useful, not useful, irrelevant, or desired. Microsoft is really listening now.

The capabilities in the Fall release will likely be sufficient for the needs of the typical HR department for a company on Dynamics AX, looking for a HRIS to simplify their HR work. Special thanks to Shiela Sogge, Senior PM at Microsoft for the insights into this new and improved cloud-based Microsoft HRIS.

By Cody Bess, Functional Consultant for Arbela Technologies

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