When it comes to scaling operations, organisations can quickly be blindsided by how much time human resource (HR) management can consume.

Many organisations quickly turn to bespoke, standalone software to support beleaguered HR managers. But there may be a solution closer to home. As a comprehensive business management solution, Microsoft Dynamics 365 Business Central offers a suite of tools specifically designed to streamline HR functionalities. Below we outline the HR features in Business Central and why organisations should Business Central for their HR operations.

What Are The HR Functionalities In Business Central?

Business Central integrates key HR functionalities that meet a diverse range of organisational needs. These functionalities include:

  1. Employee Information Management: Business Central allows for meticulous tracking and management of employee data, including personal details, employment history, job roles, as well as performance metrics. This centralised repository ensures that all employee-related information is easily accessible, up-to-date and centralised for access.
  2. Payroll Management: As a finance-focused ERP system, Business Central also provides efficient payroll processing by integrating employee data with payroll functionalities. This integration ensures accurate calculation of wages, taxes, and other deductions, thereby reducing errors and administrative overheads.
  3. Attendance and Leave Management: Business Central also offers tools for tracking employee attendance and managing leave requests. These tools automate the approval workflows and ensure compliance with organisational policies, in turn enhancing operational efficiency.

    BUsiness central HR functionality

  4. Performance Management: The platform offers tools for performance appraisal, goal setting, and talent management. Managers can set performance benchmarks, track employee progress, and also identify high-potential employees for career advancement or succession.
  5. Recruitment and Onboarding: Business Central streamlines the recruitment process by facilitating job postings, applicant tracking, and interview scheduling. Once a candidate is selected, the system ensures a smooth onboarding process by automating the necessary administrative tasks and providing new hires with a seamless transition into the organisation.

Why Should Organisations Should Use Business Central for HR Requirements?

Organisations stand to benefit significantly from using Business Central for their HR operations. Here are some compelling reasons:

Integration and Scalability

Business Central spans a wide aspect of operations. Having your HR function in Business Central therefore ensures unity of business data. The platform offers seamless integration with other Microsoft applications, such as Office 365 and Power BI, enhancing data flow and ensuring consistency across the organisation. The scalability of Business Central also allows it to grow with the organisation, accommodating increased data and more complex HR needs over time.

Enhanced Decision-Making

The analytics and reporting functionality in Business Central provides HR managers with real-time insights into workforce trends and performance. This data-driven approach facilitates informed decision-making, helping organisations to develop effective HR strategies and initiatives.

Improved Efficiency

By automating routine HR tasks, such as payroll processing, attendance tracking, and leave management, Business Central reduces the administrative burden on HR staff. This automation allows HR professionals to focus on strategic activities, such as talent development and employee engagement.


Business Central offers a cost-effective solution for HR management. Its cloud-based deployment reduces the need for extensive IT infrastructure and maintenance, thereby lowering operational costs. Moreover, the subscription-based pricing model ensures that organisations pay only for the functionalities they need, making it a financially viable option for businesses of all sizes.

Enhanced Employee Experience

The self-service portals in Business Central empower employees by giving them access to their personal information, payroll details, and leave balances. This transparency fosters trust and satisfaction among employees, contributing to a positive workplace culture.

A Complete Solution For Operations

In conclusion, Business Central offers a comprehensive suite of HR functionalities that can significantly enhance the efficiency and effectiveness of HR operations.

Its integration capabilities, advanced analytics, automation features, cost-effectiveness, and focus on employee experience make it an ideal choice for organisations looking to optimise their HR management. Combined with its wider finance and operation capabilities, organisations have plenty of reasons to consider adopting Business Central.

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