Managing Users in Microsoft 365

This guide covers the full user lifecycle in Microsoft 365 — adding new users, assigning licences, resetting passwords, editing accounts, and removing users who have left. All tasks are performed in the Microsoft 365 admin centre at admin.microsoft.com.

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You need Global Admin or User Admin role to carry out these tasks.


Adding a New User

  1. Sign in to admin.microsoft.com.
  2. Go to Users → Active users.
  3. Click Add a user.
  4. Fill in:
    • First name and Last name
    • Display name (shown in the address book)
    • Username — this becomes the email address (e.g. jane@yourdomain.co.uk)
  5. Under Password settings, choose auto-generate or set a password manually. Tick Require this user to change their password when they first sign in (recommended).
  6. Under Assign product licences, select the appropriate Microsoft 365 licence.
  7. Optionally set the user's location, job title, and department under Optional settings.
  8. Click Finish adding. The user will receive a welcome email with sign-in instructions.

Adding Multiple Users via CSV

  1. Go to Users → Active users.
  2. Click Add multiple users.
  3. Download the CSV template provided.
  4. Fill in the required columns: Username, First name, Last name, Display name, Job title, Department, Office phone, Mobile phone, Fax, Address, City, State or Province, ZIP or Postal Code, Country or Region.
  5. Upload the completed CSV file.
  6. Verify the results and click Next to assign licences.
  7. Click Add users to complete.

Editing a User Account

Change a display name or contact details

  1. Go to Users → Active users and click on the user's name.
  2. On the user panel, click Manage contact information.
  3. Update the fields as needed and click Save changes.

Change a username or email address

  1. Go to Users → Active users and click on the user's name.
  2. Click Manage username and email.
  3. Edit the username field or add an alias.
  4. Click Save changes.
  5. Note: Changing a primary username changes the sign-in address. Notify the user — their old address can be kept as an alias so existing email continues to arrive.

Assign or change a licence

  1. Click on the user's name in Active users.
  2. Click Licences and apps.
  3. Tick or untick the appropriate Microsoft 365 licence.
  4. Click Save changes.

Resetting a User Password

  1. Go to Users → Active users.
  2. Tick the checkbox next to the user's name.
  3. Click Reset password in the toolbar that appears.
  4. Choose to auto-generate a password or enter one manually.
  5. Tick Require this user to change their password when they first sign in (recommended).
  6. Choose whether to email the new password to the user or to an alternative address.
  7. Click Reset password.

Self-service password reset: Users can also reset their own passwords if your organisation has Self-Service Password Reset (SSPR) enabled. They do this at aka.ms/sspr.


Removing a User (Offboarding)

When an employee leaves, follow these steps to secure the account and preserve their data.

Step 1 — Block sign-in immediately

  1. Go to Users → Active users and click the user's name.
  2. Click Block sign-in and confirm.
  3. This prevents the user from accessing any Microsoft 365 service without deleting the account.

Step 2 — Reset their password

  1. With sign-in blocked, also reset their password to prevent any cached sessions from being reused.

Step 3 — Forward or preserve their email

  1. To forward email to another user: click the user → Mail tab → Manage email forwarding.
  2. Alternatively, convert their mailbox to a shared mailbox so the team can access historical email.

Step 4 — Save OneDrive files

  1. Go to the user's account and click OneDrive.
  2. Click Create link to files — this gives you 30 days to access and save the user's OneDrive files before they are deleted.

Step 5 — Delete the account

  1. Go to Users → Active users, tick the user, and click Delete user.
  2. The account moves to Deleted users where it is retained for 30 days.
  3. During this 30-day window, the account — including its mailbox and OneDrive — can be fully restored.
  4. After 30 days, the data is permanently deleted.

Restore a deleted user

  1. Go to Users → Deleted users.
  2. Tick the user and click Restore user.
  3. Re-assign a licence if the original was removed.

Assigning Admin Roles

Avoid giving all users Global Admin. Use the minimum role required:

  • Global Admin — full access to all settings. Limit to 2–4 people maximum.
  • User Admin — can manage users and groups but not billing or security settings.
  • Helpdesk Admin — can reset passwords and manage service requests.
  • Billing Admin — can manage subscriptions and licences.
  • Exchange Admin — can manage mailboxes and email flow.

To assign a role: click the user → Roles tab → Manage roles → choose a role → Save changes.


Troubleshooting

User cannot sign in after account creation

  • Confirm a licence is assigned — unlicensed accounts cannot access most services.
  • Check the account has not been inadvertently blocked: Active users → click user → Unblock sign-in.
  • Ensure the user is signing in with the correct username format: username@yourdomain.co.uk, not just username.

Password reset email not received

  • Check the user's junk/spam folder.
  • Use the Copy option during the reset to copy the temporary password and send it manually.

Cannot delete a user — licence error

  • Some licences prevent deletion while active subscriptions are assigned. Remove the licence first under Licences and apps, then delete the account.

Deleted user's email is bouncing

  • If a user was deleted without setting up forwarding, restore the account within 30 days, set up forwarding or a shared mailbox, then re-delete.

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