Logging into Windows using Azure AD (Office 365 account)

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Hi all... new to Azure AD here, so bear with me a little. We are moving away from a traditional server / domain. We all have Office 365 licenses and by default (I gather) Azure profiles. We are using Windows 10 Pro on our desktops are connected to a server/domain. Our laptops our Windows 10 Home using standard local user accounts.

 

What I am wanting to do it log into our computers using the Office 365 / Azure profile (we are currently logging into our server/domain). I understand that we can access work or school accounts using settings and connect it there (which we have done), but the computer is still logged in as a domain user (or, on our laptops, as a local user). From what research I have done, it appears that during a fresh install of Windows 10 Pro, one is given the option to set the computer up under an organization. I assume this is where we could achieve what I am wanting, but there doesn't seem to be anyway to do it if the computer is already set up. 

 

I also see where we can add a user, but if use an office 365 email for an employee, it just states that they don't have a Microsoft account. 

 

I'm just very confused on this. Do I have to have every employee set up a Microsoft account in order for them to be able to login to Windows using their office 365 account? This just seems like a nightmare, as they are two separate things with two credentials to keep up with -- correct? Or, is there a way to do it that I am just not seeing? If I did a fresh install, would I be given the opportunity to set the computer up under an organization?

 

Any insight / help with this would be greatly appreciated!

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