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Microsoft, The HR Tech Company You Never Thought Of

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Lance Haun avatar
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Over the years, Microsoft has quietly been building a comprehensive suite to manage the workforce. But its real advantage is something else.

When you think of HR software, you probably don't think Microsoft, a company better known for its ubiquitous operating systems, productivity suites and gaming consoles. 

But Microsoft is not only involved in HR tech, it's one of the most interesting providers in the industry. Over the years, the company has quietly built a comprehensive suite of tools to manage the workforce — from employee engagement and communication to data analysis and automation. Yet these tools go overlooked by HR buyers and talking heads alike. 

Why? Because the company doesn't market its products as HR tech. It doesn't check traditional HR software boxes and HR-focused analysts ignore it. Instead, these products get bundled within broader productivity and business solutions — software that typically falls under the purview of IT. Even for IT leaders, it's more of a question around what kind of licensing they want, not whether to use Microsoft. You're either a Microsoft shop or you aren't. 

The Microsoft Advantage

The Dynamics 365 platform might spring to mind when you think about Microsoft and HR. But that's not what I'm talking about. While Dynamics 365 is a fine HR solution, it's only a small piece of the puzzle. The real power enters because when an organization uses Microsoft, everyone is on Microsoft all day.

Companies like Workday, SAP SuccessFactors and Oracle HCM Cloud have dominated the conversation around HR platforms, but they have a built-in disadvantage: only a small group of users wants or needs to use their systems. Some of these companies have made inroads into the flow of work beyond traditional ERP and HR — and some even work within Microsoft solutions like Teams or Viva. 

Microsoft's HR tools don't need to make inroads, because they exist as part of a larger ecosystem of productivity apps, employee experience, analytics and more. 

Related Article: The Myth of the Digital Workplace Hub

Integrating HR Processes Where People Work: Microsoft Office, Teams, Viva

Let's start with Microsoft Office. Office products like Word, Excel, Outlook and PowerPoint are how many of us get work done every day. You could even argue that the most widespread HR tools for communication (Outlook), forms (Word) and analytics (Excel) have been Microsoft tools for at least two decades.

Then there's Teams, Microsoft's communication and collaboration platform. Teams can be used for individual and team communication, virtual meetings, and collaboration. While the platform gets mixed reviews from users, it's an unavoidable part of working in Microsoft.

Microsoft's employee experience platform Viva combines elements of communication, learning, wellbeing and knowledge into a portal-like experience. Viva’s partner ecosystem started strong and continues to grow because it owns a significant part of the digital work experience. 

While Microsoft might be ignored in HR tech circles, LinkedIn certainly isn’t. The de facto job board for professional roles, LinkedIn also brought Glint into the suite, which is being folded into Viva to provide employee surveys.

Microsoft's Power Apps and Power Automate platforms are powerful no-code tools to automate repetitive tasks or build processes (for both admins and end users). Microsoft’s well-publicized partnership with OpenAI will inevitably make the platform a powerful part of the work experience, something we're already seeing signs of with Microsoft Copilot.

Even Sharepoint plays a part, as an important place for information, submitting requests and staying updated on company news and updates.

Related Article: The Next Big Thing in HR Tech: Improving the Flow of Work

Putting HR in the Flow of Work

HR and work leaders need an HR system of record. They also need HR-specific apps to do their jobs effectively, just as other teams require specialized tools.

But anything that touches the general employee population better be well embedded in their digital workplace. If your organization is a Microsoft shop, it’s hard to imagine a future where your learning, performance, communication and employee experience aren’t embedded within that platform. 

Learning Opportunities

Microsoft also has the ultimate consolidation play for HR and IT teams looking for ways to work together to consolidate solutions. It has also tried to streamline technology to move out of the traditional office environment with frontline-specific solutions. With familiar packaging, integrations and mobile capabilities out of the box, if you can do it in Microsoft and you have a subscription to it, there’s little reason not to. 

So, the next time you're looking for interesting and innovative work in HR technology, consider Microsoft — it might be the most important HR technology you've never thought of to meet the needs of your organization. 

About the Author
Lance Haun

Lance Haun is a leadership and technology columnist for Reworked. He has spent nearly 20 years researching and writing about HR, work and technology. Connect with Lance Haun:

Main image: 青 晨
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