Ukrenergo, Ukraine’s state-owned national grid operator, has cut payroll processing time by 83% after consolidating HR and payroll operations onto Microsoft Dynamics 365 Finance. The project replaced more than 30 disconnected applications and 200 fragmented HR processes with a single platform, built on OntargIT’s HR & Payroll solution and delivered together with consulting partner EY.
The importance of HR&Payroll
Payroll at scale is rarely just a finance function — for a company running national infrastructure, it’s also a governance and security problem. Ukrenergo’s HR team had been aggregating data across dozens of tools with no shared source of truth, which meant every payroll cycle carried the risk of manual error, and every audit meant chasing records through separate systems. Multiple compensation models, role-specific multipliers, and strict state-enterprise rules made the manual work heavier still; a single cycle could take up to 18 hours to close.
For organizations operating critical infrastructure, that kind of fragmentation isn’t a minor inconvenience. It’s an operational risk — in staffing decisions, in compliance reporting, and in the ability to react quickly when circumstances change.
OntargIT cooperation with Ukrenergo
The technical implementation was delivered by OntargIT, built on its own HR & Payroll solution for Microsoft Dynamics 365 — an ISV product designed around three integrated components: organizational structure and staffing management, time tracking, and payroll calculation. Ukrenergo was already an OntargIT client running Dynamics 365 Finance, Human Resources, and Power BI with Ukrainian localization, which gave the HR expansion a foundation to build on rather than starting from scratch.
Details and results
The project — internally named “ERP, Human Capital Management” — consolidated organizational structure, personnel administration, time tracking, and payroll calculation into Dynamics 365 Finance, decommissioning more than 30 legacy applications and tools in the process. The team standardized 80 global HR processes and automated core payroll workflows that had previously been split across multiple systems.
The results, as reported:
- Payroll processing time dropped from 18 hours to roughly 3 hours — an 83% reduction
- Manual data entry fell by 60%
- Time spent on typical HR tasks dropped by 30%
- 80 HR processes were standardized across the organization
As Ukrenergo’s HCM Project Manager Tetiana Mykhalska put it, the team “achieved a result we couldn’t even dream of” under difficult project conditions.
The new system also gave Ukrenergo better traceability of payroll calculations across departments and stronger governance of workforce records — including tracking military-service status, a specific requirement for operating during wartime.
For OntargIT, the project reinforces a pattern already visible across its Ukrainian client base: HR, payroll, and compliance work in Ukraine carries requirements — legal, security, and now wartime-operational — that a generic Dynamics 365 deployment doesn’t cover on its own, and that a purpose-built ISV layer is built to absorb.
