When managing access and collaboration across Microsoft 365, understanding the structure and function of group-based permissions is essential. Two terms frequently encountered – but often misunderstood – are Microsoft 365 Security Groups and SharePoint Permission Groups. While they may appear similar on the surface, they serve distinct purposes and operate within different scopes of the Microsoft ecosystem.
This article provides a clear, high-level comparison of these group types, helping IT administrators, power users and business stakeholders make informed decisions about managing access within their organisations.
Microsoft 365 Security Groups: A Centralised Access Control Mechanism
Microsoft 365 Security Groups, managed via Microsoft Entra ID (formerly Azure Active Directory), provide a centralised way to control access to multiple services across the Microsoft 365 environment.
Key Characteristics of Security Groups:
- Cross-Service Access: Security groups are not limited to one platform. A single group can grant access to resources across Exchange Online, SharePoint Online, Teams, and other Microsoft 365 services.
- Directory-Based Management: These groups are created and managed in Microsoft Entra ID, making them part of the organisational directory. This makes them ideal for large-scale or enterprise-wide access management.
- Dynamic Membership: With Microsoft Entra ID Premium licensing, administrators can define dynamic rules that automatically add or remove users based on user attributes (such as department or location). This is especially useful for automating access as personnel join, leave, or change roles within the business.
- Security-Centric: As the name implies, these groups are tied closely to identity and security management, frequently used in Conditional Access policies, role-based access control (RBAC), and licensing assignments.
Common Use Cases for Security Groups
Security Groups shine in scenarios where broad, centralised access is required across the Microsoft 365 platform. For instance, if you need to grant every staff member access to a company-wide SharePoint site or a general Teams channel, a Security Group is ideal. Rather than managing individuals, you simply manage the group – add a new starter, and they’ll automatically have access to the appropriate tools and content.
They’re also particularly useful when your organisation wants to automate access based on attributes like department or job role. If someone joins the marketing team, for example, they can be added to all the relevant resources automatically through dynamic membership rules. Additionally, Security Groups are a go-to solution for administrators looking to apply Conditional Access policies or assign Microsoft 365 licences at scale.
SharePoint Permission Groups: Tailored Control Within SharePoint
SharePoint Permission Groups operate at the site level and are designed specifically for managing access within SharePoint Online. Unlike Security Groups, they are not directory-wide and do not apply across services.
Key Characteristics of SharePoint Permission Groups:
- Scoped to Sites: Each SharePoint site contains its own set of permission groups by default – typically “Owners”, “Members”, and “Visitors”. These are used to apply permissions within the boundaries of that site alone.
- Custom Groups: Site owners can create additional SharePoint groups with custom permission levels (e.g. “Contribute”, “Read”, “Edit”) tailored to the specific needs of their project or team.
- Granular Permission Control: SharePoint allows permissions to be broken down to individual document libraries, folders, or even items. SharePoint groups are key to implementing this finely tuned access.
- Manual Membership: Users must be added manually to SharePoint groups unless external groups (such as Microsoft 365 groups or Security Groups) are included, which allows for integration.
Common Use Cases:
SharePoint Permission Groups are all about precision and site-specific control. Imagine you’re managing a SharePoint site for a cross-departmental project. You might want some team members to have full editing rights, while others should only be able to view documents. SharePoint groups let you apply those distinctions with ease.
They’re also a great way to delegate control. By assigning key stakeholders to the “Owners” group, you give them the ability to manage content and permissions without needing to involve IT every time. For sensitive content – like draft policies or legal documents – you might create a bespoke group with restricted access, ensuring only a select few can view or edit that material. Essentially, when your goal is to tailor access based on specific roles within a project or team, SharePoint Permission Groups are the natural choice.
Key Differences at a Glance
| Feature | Microsoft 365 Security Groups | SharePoint Permission Groups |
|---|---|---|
| Scope | Cross-service (Microsoft 365-wide) | SharePoint site-specific |
| Management | Managed in Microsoft Entra ID | Managed within SharePoint site settings |
| Membership | Manual or dynamic (with rules) | Manual (unless external groups are added) |
| Integration | Works across SharePoint, Teams, Exchange, etc. | Only applies to SharePoint permissions |
| Use Cases | Directory-wide access control | Granular SharePoint site and document access |
When to Use Each Type
Choosing the right type of group depends on the context of what you’re trying to achieve.
- Use Microsoft 365 Security Groups when you’re managing broad access across multiple services, automating access control based on user roles or attributes, or applying identity-based security controls.
- Use SharePoint Permission Groups when you need fine-grained control over access within a particular SharePoint site or document library, particularly where group membership needs to reflect site-specific roles and responsibilities.
Using Both Together: Best of Both Worlds
It’s not a question of using one or the other – in many cases, the best approach is to combine the strengths of both.
For instance, you might add a Microsoft 365 Security Group to a SharePoint Permission Group. This allows you to use the centralised, rule-based membership of the Security Group, while still applying the specific permissions defined in SharePoint. It reduces manual administration while preserving flexibility.
This hybrid approach is especially useful in environments where users frequently move between departments or projects, as it ensures that permissions adapt dynamically without requiring ongoing intervention by site owners or IT admins.
Best Practices
To ensure robust and manageable access control across Microsoft 365 and SharePoint, consider the following best practices:
- Establish naming conventions for both Security Groups and SharePoint groups to avoid confusion and improve discoverability.
- Audit group membership regularly, particularly for SharePoint groups that are manually managed.
- Use dynamic membership where possible to reduce administrative overhead and improve responsiveness to organisational changes.
- Limit permission inheritance breaking in SharePoint unless absolutely necessary, as it can complicate permissions auditing and troubleshooting.
- Document your group strategy, especially when combining Security Groups with SharePoint groups, so that others understand the rationale and structure.
Conclusion
Microsoft 365 Security Groups and SharePoint Permission Groups are both powerful tools – but designed with very different scopes and intentions. Understanding the nuances between them is vital for designing a scalable, secure, and efficient permissions model across Microsoft 365.
By leveraging the strengths of each, and combining them strategically where appropriate, organisations can ensure that access is managed consistently, securely, and with minimal administrative overhead.
If you need help establishing the right permissions for your SharePoint environment, our consultancy services are world class. Contact us to find out how we can help you.