Office 365 with Azure AD sync

Hi all, looking for some help and have a question with Office 365 and Azure AD sync. Our current setup is we have Office 365 solely for the Office suite; we may add additional components down the line but right now its just the office suite/web apps. I am trying to simplify the setup for users to use outside of their office machine whether its web apps or BYOD.
I have been trying to get AAD to sync passwords from our on-prem AD to the cloud so that the same password can be used for login, and that when a user changes their password it will be in sync. In theory this sounds great and simple enough, however i am finding the passwords do not sync. I do have the Azure AD connect tool installed on a 2008 R2 member server, i can sync a user account from AD to Office 365 with out an issue, however the password does not sync. We are currently...