Employment Hero vs Microsoft 365: The Complete 2026 Comparison for Australian Professional Services
An honest comparison of Employment Hero and Microsoft 365 for Australian mid-market Australian businesses. See feature ratings, pricing, pros and cons to make the right choice - or let our Harvard-educated experts help you decide.
Feature Comparison
Side-by-side feature analysis for Employment Hero and Microsoft 365.
Invoicing
Employment Hero
Employment Hero provides invoicing functionality, popular with Retail & E-commerce businesses
Microsoft 365
Microsoft 365 provides invoicing functionality, popular with Professional Services businesses
invoicing support varies across Employment Hero and Microsoft 365's plan tiers. Check whether the capabilities you need are on the plan you can actually afford.
Expense tracking
Employment Hero
Employment Hero provides expense tracking functionality, popular with Retail & E-commerce businesses
Microsoft 365
Microsoft 365 provides expense tracking functionality, popular with Professional Services businesses
For expense tracking, evaluate both platforms against your specific workflow requirements rather than feature lists alone. A free trial or vendor demo will clarify the differences.
Bank reconciliation
Employment Hero
Employment Hero provides bank reconciliation functionality, popular with Retail & E-commerce businesses
Microsoft 365
Microsoft 365 provides bank reconciliation functionality, popular with Professional Services businesses
For bank reconciliation, evaluate both platforms against your specific workflow requirements rather than feature lists alone. A free trial or vendor demo will clarify the differences.
Payroll
Employment Hero
Combines HR, payroll, and employee benefits in a single Australian-built platform, reducing the need for separate systems
Microsoft 365
Microsoft 365 provides payroll functionality, popular with Professional Services businesses
Employment Hero highlights payroll as a core strength. Microsoft 365 offers the capability but does not position it as a primary differentiator.
Tax reporting and BAS
Employment Hero
Limitation: Customer support response times can vary, with some users reporting delays during peak payroll periods
Microsoft 365
Microsoft 365 includes tax reporting and bas capabilities. Feature depth varies by plan tier
Employment Hero and Microsoft 365 take different philosophical approaches to tax reporting and bas; the better fit is usually the one that matches how your team already thinks about the problem.
Multi-currency support
Employment Hero
Limitation: Customer support response times can vary, with some users reporting delays during peak payroll periods
Microsoft 365
Microsoft 365 offers multi-currency support capabilities. Support depth and SLA commitments vary by plan
If multi-currency support is a daily-use area for your team, the onboarding curve and keyboard ergonomics matter more than feature counts - trial both with a real operator, not an evaluator.
Workflow complexity
Employment Hero
Limitation: Customisation of workflows and approval chains is less flexible than dedicated HRIS platforms like BambooHR or Rippling
Microsoft 365
Limitation: Licensing complexity is significant - choosing between Business Basic, Standard, Premium, E3, and E5 requires careful analysis of feature needs
Edge cases in workflow complexity (bulk edits, exports, undo, permissions) are where Employment Hero and Microsoft 365 diverge; map your five toughest scenarios and reproduce them in each trial.
Available integrations
Employment Hero
Employment Hero connects with 41+ tools natively, offering one of the broadest integration ecosystems in its category
Microsoft 365
Teams combines chat, video meetings, file sharing, and app integrations in one platform, reducing the need for separate tools
Microsoft 365 highlights available integrations as a core strength. Employment Hero offers the capability but does not position it as a primary differentiator.
Error handling
Employment Hero
Employment Hero provides error handling functionality, popular with Retail & E-commerce businesses
Microsoft 365
Microsoft 365 provides error handling functionality, popular with Professional Services businesses
Day-to-day error handling workflows feel different between Employment Hero and Microsoft 365 - watch a recorded walkthrough of each before judging which fits your team.
Scheduling options
Employment Hero
Employment Hero provides scheduling options functionality, popular with Retail & E-commerce businesses
Microsoft 365
Microsoft 365 provides scheduling options functionality, popular with Professional Services businesses
Both Employment Hero and Microsoft 365 address scheduling options. The right choice depends on whether you prioritise depth of functionality or breadth of your overall platform.
Conditional logic
Employment Hero
Employment Hero provides conditional logic functionality, popular with Retail & E-commerce businesses
Microsoft 365
Microsoft 365 provides conditional logic functionality, popular with Professional Services businesses
Employment Hero and Microsoft 365 take different philosophical approaches to conditional logic; the better fit is usually the one that matches how your team already thinks about the problem.
Data transformation
Employment Hero
Employment Hero manages employees, payroll, leave, onboarding and 4 more object types
Microsoft 365
Excel remains unmatched for complex financial modelling, data analysis, and pivot tables that Google Sheets cannot replicate
Microsoft 365 highlights data transformation as a core strength. Employment Hero offers the capability but does not position it as a primary differentiator.
Pricing Comparison
General pricing information for each platform.
Employment Hero
HR Standard from approximately $8/employee/month, HR Premium from approximately $12/employee/month, Payroll from approximately $6/employee/month (AUD). HR and Payroll billed separately. Onboarding and benefits modules included at Premium level.
Pricing may vary based on team size, features, and region. Contact the vendor for the latest Australian pricing.
Microsoft 365
Business Basic from approximately $9/user/month, Business Standard from approximately $18/user/month, Business Premium from approximately $33/user/month (AUD). Desktop Office apps included from Standard tier. Teams included in all business plans.
Prices shown are approximate and may differ based on your plan, team size, and billing cycle. Verify directly with the vendor for current AUD rates.
Pros & Cons
An honest look at the strengths and limitations of each platform.
Employment Hero
Pros
- Combines HR, payroll, and employee benefits in a single Australian-built platform, reducing the need for separate systems
- Employee self-service portal handles onboarding paperwork, leave requests, and personal detail updates without HR intervention
- Built-in employee benefits marketplace (Swag) offers discounts on everyday purchases, which can help with retention and employee satisfaction
- Compliance management tracks certifications, licences, and mandatory training with automatic expiry reminders
- Performance review tools with goal setting, 1-on-1 templates, and 360-degree feedback are included on higher plans without needing a separate tool
Cons
- Payroll module pricing is separate from the HR platform, so the all-in cost can be higher than expected when both are needed
- The platform has grown rapidly through acquisition and feature addition, which sometimes shows in inconsistent UX between modules
- Customisation of workflows and approval chains is less flexible than dedicated HRIS platforms like BambooHR or Rippling
- Customer support response times can vary, with some users reporting delays during peak payroll periods
Microsoft 365
Pros
- Industry-standard office apps (Word, Excel, PowerPoint, Outlook) that virtually every business partner and client can work with seamlessly
- Excel remains unmatched for complex financial modelling, data analysis, and pivot tables that Google Sheets cannot replicate
- SharePoint and OneDrive provide robust document management with version history, permissions, and compliance features suited to regulated industries
- Teams combines chat, video meetings, file sharing, and app integrations in one platform, reducing the need for separate tools
- Power Platform (Power BI, Power Automate, Power Apps) adds low-code automation and business intelligence at included or low additional cost
Cons
- Licensing complexity is significant - choosing between Business Basic, Standard, Premium, E3, and E5 requires careful analysis of feature needs
- Teams can feel bloated with notifications and features, leading to "Teams fatigue" if not configured and managed thoughtfully
- Admin portal is powerful but complex, often requiring IT expertise to manage security policies, compliance, and user provisioning properly
- Co-authoring in desktop Office apps is less smooth than Google Docs, with occasional sync conflicts on complex documents
Best For
Which tool suits which use case.
Choose Employment Hero if you need
- ✓ Retail & E-commerce businesses
- ✓ Teams needing extensive third-party integrations
- ✓ Complex data models (employees, payroll, leave and more)
- ✓ Hospitality & Tourism organisations
- ✓ Tax compliance
Choose Microsoft 365 if you need
- ✓ Process optimisation
- ✓ Professional Services businesses
- ✓ Complex data models (emails, calendar-events, documents and more)
- ✓ Financial Services organisations
- ✓ Teams needing extensive third-party integrations
Expert Verdict
Our Harvard-educated consultants' take on this comparison.
Clever Ops Recommendation
Employment Hero and Microsoft 365 solve different problems: Employment Hero handles accounting & finance, while Microsoft 365 covers automation. Most mid-market Australian businesses benefit from running both with a proper integration layer. Employment Hero is the right pick when Australian SMBs that want HR, payroll, and employee engagement tools in a single locally built platform, particularly businesses managing onboarding, compliance, and leave at scale. Microsoft 365 fits when mid-market businesses in professional services, finance, or regulated industries that need advanced Office apps, strong security controls, and SharePoint document management. Clever Ops can design the integration architecture and implement both, typically within 4-8 weeks.
Migration Notes
What to know about switching between Employment Hero and Microsoft 365.
Migrating Between Employment Hero and Microsoft 365
A successful migration from Employment Hero to Microsoft 365 (or vice versa) is not just about data - it is about your team. Clever Ops handles the technical migration of your core data and custom fields, but we also provide hands-on training so your team is confident on the new platform from day one. The full process, including training, typically takes 4-8 weeks.
Employment Hero vs Microsoft 365 FAQ
We audit your current workflows, team size, budget, and growth plans, then recommend the platform that fits. Our advice is vendor-neutral: we do not earn commissions from Employment Hero, Microsoft 365, or any vendor. Our Harvard-educated consultants have helped 50+ businesses make informed technology decisions over 12+. Book a free assessment to get started.
Employment Hero limitations: Payroll module pricing is separate from the HR platform, so the all-in cost can be higher than expected when both are needed. The platform has grown rapidly through acquisition and feature addition, which sometimes shows in inconsistent UX between modules. Microsoft 365 limitations: Licensing complexity is significant - choosing between Business Basic, Standard, Premium, E3, and E5 requires careful analysis of feature needs. Teams can feel bloated with notifications and features, leading to "Teams fatigue" if not configured and managed thoughtfully. Understanding these trade-offs in the context of your specific workflows is critical. Clever Ops can help you weigh which limitations matter most for your business during a free assessment.
Employment Hero strengths: Combines HR, payroll, and employee benefits in a single Australian-built platform, reducing the need for separate systems. Employee self-service portal handles onboarding paperwork, leave requests, and personal detail updates without HR intervention. Microsoft 365 strengths: Industry-standard office apps (Word, Excel, PowerPoint, Outlook) that virtually every business partner and client can work with seamlessly. Excel remains unmatched for complex financial modelling, data analysis, and pivot tables that Google Sheets cannot replicate. The features that matter most depend on your team's daily workflows and growth plans. Clever Ops can help you map your requirements to the right platform.
Both Employment Hero and Microsoft 365 serve Healthcare & Allied Health businesses. Employment Hero is also popular with Retail & E-commerce organisations, while Microsoft 365 is widely used in Professional Services. Clever Ops can advise based on what we have seen work for businesses like yours.
Yes. Employment Hero provides a REST API and Microsoft 365 provides a REST API, so we can build reliable integrations between them. Common sync patterns include contacts and key records. Our integrations include error handling, retry logic, and monitoring. Clients typically save 8+ hours/week once the integration is live.
For Professional Services, the answer depends on your operational model. Employment Hero is best for Australian SMBs that want HR, payroll, and employee engagement tools in a single locally built platform, particularly businesses managing onboarding, compliance, and leave at scale. Microsoft 365 is best for mid-market businesses in professional services, finance, or regulated industries that need advanced Office apps, strong security controls, and SharePoint document management. Clever Ops has helped businesses across Professional Services choose the right stack. Book a free assessment for advice specific to your situation.
Switching costs include data migration, team retraining, workflow rebuilding, and potential downtime. Employment Hero pricing: HR Standard from approximately $8/employee/month, HR Premium from approximately $12/employee/month, Payroll from approximately $6/employee/month (AUD). Microsoft 365 pricing: Business Basic from approximately $9/user/month, Business Standard from approximately $18/user/month, Business Premium from approximately $33/user/month (AUD). Beyond licensing costs, budget for implementation (Clever Ops typically completes migrations in 4-8 weeks) and training. We run parallel systems during transitions and provide 3 months of post-migration support to minimise disruption.
Yes. Employment Hero provides a REST API and Microsoft 365 provides a REST API, so automations can be built via Zapier, Make, or custom integrations. Common automated workflows include syncing shared data objects between both platforms. Clever Ops builds these automations for mid-market Australian businesses, saving teams 8+ hours/week on average.
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