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Integrate Dynamics 365 HR with Azure AD

Integrate Dynamics 365 HR with Azure AD
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In the dynamic landscape of modern business, organizations are constantly seeking ways to enhance their efficiency and productivity. One pivotal aspect of achieving this is the seamless integration of various software solutions. Microsoft’s suite of tools offers a comprehensive platform, and when it comes to human resources management, Dynamics 365 Human Resources (D365 HR) is a powerful solution. To further enhance its capabilities, organizations often leverage Azure Active Directory (Azure AD) to streamline user management and access control. In this article, we will explore the benefits and steps involved in integrating Azure AD with Dynamics 365 Human Resources.

Presently, Dynamics 365 HR lacks built-in capabilities for certain functions. However, it proves highly beneficial for partners or customers to create these functionalities using Power Automate and the Azure AD connector. This article encompasses the following key aspects:

  • New employee hiring: Adding an employee to the D365 HR automatically creates a user in Active Directory and Microsoft Entra ID. Adding a user account includes the option to write back the email address and username attributes to the D365 HR.
  • Employee attribute and profile updates: When an employee record such as name, title, or manager is updated in the D365 HR, their user account is automatically updated in Active Directory and Microsoft Entra ID.
  • Employee terminations: When an employee is terminated in the D365 HR, their user account is automatically disabled in Active Directory and Microsoft Entra ID.


  1. Single Sign-On (SSO): Integration with Azure AD enables a single sign-on experience for users. Employees can use their Azure AD credentials to access D365 HR, reducing the need for multiple passwords and enhancing user convenience.

  2. Centralized User Management: Azure AD serves as a centralized identity management platform. By integrating it with D365 HR, organizations can efficiently manage user identities, roles, and permissions from a single console, ensuring consistency and security across the entire ecosystem.

  3. Enhanced Security: Azure AD provides robust security features such as Multi-Factor Authentication (MFA) and conditional access policies. Integrating with D365 HR extends these security measures to the HR system, safeguarding sensitive employee data.

  4. Automated User Provisioning and Deprovisioning: With Azure AD integration, user provisioning and deprovisioning become automated processes. When a new employee joins the organization, their information is automatically synchronized with D365 HR, ensuring quick and accurate onboarding. Similarly, when an employee leaves, their access is promptly revoked, reducing security risks.

  5. Improved Reporting and Analytics: Integration allows organizations to consolidate user data, making it easier to generate comprehensive reports and analytics. This enhanced visibility can aid HR professionals in making informed decisions and strategic workforce planning.

What is Azure AD(Entra):

Azure Active Directory (Azure AD) is Microsoft’s cloud-based identity and access management service, which helps your employees sign in and access resources in:

  • External resources, such as Microsoft 365, the Azure portal, and thousands of other SaaS applications.
  • Internal resources, such as apps on your corporate network and intranet, along with any cloud apps developed by your own organization. For more information about creating a tenant for your organization.

What is Dynamics 365 Human resources:

Microsoft Dynamics 365 Human Resources is a true software as a service (SaaS) that provides continuous, touchless service updates. These updates contain both application and platform changes that often provide critical improvements to the service, including regulatory updates.


  1. You need an administrator access to use Azure AD connector.
  2. You need system administrator access to connect with Power Platform/D365 Human resources.

HR scenarios

1. New employee hiring

Step 1: Login to Dynamics 365 HR environment

Step 2: Hire an employee.

Step 3: Add primary email address of an employee.

Once you save the record, this will trigger a power automate, notify to IT admin/HR team.

You will see a new user is created in Azure AD.

2. Employee attribute and profile updates:

Step 1: Login to Dynamics 365 HR environment.

Step 2: Change the name of the employee and click on save.

This will update the name in the Azure AD as follows.

3. Employee terminations:

When an employee is terminated in D365 Human Resource, their user account is automatically disabled in Active Directory, Microsoft Entra ID, and optionally D365 Human Resources.

Step 1: Terminate an employee in D365 Human Resources.

Step 2: This will send a notification to IT admin team, remove the user from all groups and disable the user in Azure AD.


The integration of Dynamics 365 Human Resources with Azure Active Directory is a strategic move for organizations seeking to optimize their workforce management. By combining the strengths of these Microsoft solutions, businesses can achieve a unified and streamlined approach to HR operations, fostering a secure and efficient work environment. Following the outlined steps and leveraging the integration capabilities of Azure AD and Dynamics 365 HR ensures that organizations can unlock the full potential of their workforce management processes in the digital age.


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