1Copyright © Best Practices®, LLC

Commercial On-Boarding Excellence: Bringing New Employees Up To Productivity

Quickly and Effectively

Best Practices, LLC Strategic Research & Analysis

2

Table of Contents

• Project Overview, p. 2

• Universe Of Learning For This On-Boarding Benchmark Analysis, p. 5

• Key Benchmark Findings & Observations, p. 9

• Benchmark Participant Demographics, p. 26

• On-Boarding Program Structure and Scope, p. 29

• Engaging Employees Quickly & Effectively: Critical On-Boarding Program Elements, p. 40

• Creating High “Set Points” for Productivity, Positive Attitude & Loyalty: Key Program Objectives, p. 48

• Training on Technology, Mentor Systems & Managing Peak Hire Periods: Other Critical Success Factors, p. 61

• Technology Platforms & Applications That Are The Cornerstones of On-Boarding Success, p. 67

• Understanding Company Culture, Values & Strategy: The Importance of “Soft” Factors To Success, p. 74

• On-Boarding Pitfalls, Lessons Learned & Best Practices, p. 80

• About Best Practices, p. 85

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Project Blueprint To Inform On-Boarding Success

Benchmark Survey

Deep Dive Interviews Ta

rget

Maj

or P

harm

aceu

tical

, Bio

tech

&

Med

ical

Dev

ice

Com

pani

es

Tools For Insight:

Segment Analysis:

Engage Research

Participants:• Which On-Boarding

Activities Foster Retention

• Evaluation of Topics and Venues that Enhance On-Boarding Experience

• What is the Optimum Amount of Time for an On-Boarding Program

• How do you Effectively Measure the Success of an On-Boarding Program

Benchmark Themes To Examine:

Study Protocol: Key Areas Probed:

• On-Boarding Structure & Scope

• Engaging Employees/ Retention

• On-BoardingPriorities and Effectiveness

• Speed to Productivity

• Technologyand OtherTools for On-Boarding

This benchmark study analyzes factors associated with on-boarding (Learning & Development) activities – including structure, objectives, and effectiveness – to help leadership evaluate the organization’s approach to on-boarding relative to other market leaders.

Focus:

AllCompanie

s

On-Boarding

Leadership

Pharma-Device

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Universe of LearningIn total, 33 Training and Development leaders with On-Boarding responsibilities among 33 national and global organizations participated in this research. All study participants answered all or relevant parts of a comprehensive Commercial On-Boarding performance benchmark assessment. In addition, selected executives provided qualitative insights through deep-dive interviews and “lessons learned” observations.

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Commercial Function is Largest On-Boarding Target

Approximately what percentage of the employees that your organization on-boards come from each of the following corporate functions?

Other functions, 31%

Corporate functions(e.g.,

Finance, Legal), 8%

Commercial functions

(e.g.Sales & Marketing), 36%

Management, 8%

Research & Development functions, 16%(N=11) (N=31)

Pharma/Device Segment Total Benchmark Class

Other functions, 11%

Corporate functions(e.g.,

Finance, Legal), 9%

Commercial functions

(e.g.Sales & Marketing), 65%

Management, 5%

Research & Development functions, 10%

*Other Responses from the Total Benchmark Class- Operations(4), Engineering and Program Management, Global - foreign affiliates, Consultants/ Contractors/ Laborers (2), Physicians, Individual functional managers, Technical / Services(2), Manufacturing(2), Medical function, Environmental and Safety, Occupational Health etc

*Other Responses from the Pharma/Device Segment- Manufacturing, Operations(2), Technical Support, Environmental and Safety, Occupational Health etc

Commercial operations are routinely cornerstones of on-boarding programs. In these customer-facing and revenue-creating functions, speed to productivity can dramatically lift or drive performance. Many other functions utilize on-boarding programs but at a lower rate than sales and marketing functions.

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All Employee Types Use On-Boarding Programs

Which of the following employee types are included in your on-boarding activities ?

(N=11) (N=33)

100%

55%

73%

45%

9%

97%

45%

42%

33%

3%

New hires fromoutside the company

Contract employees

Current employeesmoving into newfunctional areas

Employees absorbedin merger/acquisition

Other

Pharma/Device Total Benchmark Class

Both the Total Benchmark Class and Pharma/Device Segment listed Interns as a group included in on-boarding activities.

New hires are the target for on-boarding across all companies. Interestingly, many other employee types – including contract, intra-company transfers, and merger employees) utilize on-boarding activities as well.

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81%

81%

78%

78%

69%

15%

15%

15%

15%

23%

74%

70%

7%

4%

Create an onboarding schedule fornew employee

Use a standardized onboardingchecklist, that's centrallywarehoused, to ensure

Set up computer, phone, log inpassword, office supplies

Schedule new employee to attendNew Employee Orientation

Session

Set up workspace and computer

New employee completes personalinformation for HRIS through

onlineSend an announcement via emailto the department announcing the

new hire and start date

Highly Important Somewhat Important

Before Day 1: Set Up On-Boarding Schedule & Work Station

What activities are important for the company to accomplish prior to the first day to help ensure on-boarding success and early employee engagement ?

Pharma/Device Segment Total Benchmark Class

(N=10) (N=27)

80%

80%

80%

60%

60%

20%

20%

30%

20%

60%

60%

10%

4%

Create an onboarding schedule fornew employee

Schedule new employee to attendNew Employee Orientation Session

Set up computer, phone, log inpassword, office supplies

Set up workspace and computer

Send an announcement via email tothe department announcing the

new hire and start date

New employee completes personalinformation for HRIS through online

Highly Important Somewhat Important

Confirm personal offer letter sent to new employee by manager, Human Resources head or a key executive

For both employee and organizational success, It’s important to do several things before a new hire’s first day: Creating an on-boarding schedule for the employee and setting up the worker’s work station are two important steps, participants agreed.

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Reaching Productivity Quickly Key On-Boarding Goal

Key Program Goals & Objectives: Which of the following are primary or secondary goals and objectives of your on-boarding program?

Successfully integrating new

hires into the corporate culture

Decreasing the time for

employees to reach full

productivity

Helping employees

build relationships

Affirming the employee's decision to

join the company

Increase employee retention

Primary Goal

45% 64% 36% 27% 27%

Secondary Goal

55% 36% 55% 55% 45%

Not a Goal 0% 0% 9% 18% 27%

Primary Goal

65% 67% 47% 33% 50%

Secondary Goal

35% 27% 43% 50% 40%

Not a Goal 0% 7% 10% 17% 10%

Pharma-Device -

n=11

Total Benchmark

Class - n=30

Getting employees up to productivity quickly is a primary goal for both segments. While the Total Benchmark Class places a high premium on integrating employees into the corporate culture and increasing retention, the Pharma/Device segment places less of an emphasis on these objectives. This signals improvement opportunities for the sector.

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On-Boarding Programs Have Many Objectives

(N=8)

What additional goals and objectives are important to your program?

• Set up on company systems and tools

• Increase employee engagement

• Provide product knowledge training on focus product lines.

• Industry regulation requirements

• Ensure quick adaptation to technology used

• Safety and Quality Systems Training

• For college hires -- transition from school to work environment

• Acclimating to the company culture

• Set up on company systems and tools

• Increase employee engagement

• Provide product knowledge training on focus product lines.

• Industry regulation requirements

• Ensure quick adaptation to technology used

• Safety and Quality Systems Training

• For college hires -- transition from school to work environment

• Acclimating to the company culture

• Benefits overview

• How to use CRM and quoting

system.

• Employee Benefits

• Personal/Job Satisfaction for

the new employee

• Benefits overview

• How to use CRM and quoting

system.

• Employee Benefits

• Personal/Job Satisfaction for

the new employee

Primary Goals Secondary Goals

Many companies customize and tailor parts of their on-boarding programs to support specialized objectives that are important to the organization’s success. Goal diversity ranges from employee engagement and safety to CRM and quoting systems training.

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Technology Training, New Hire Feedback Keys to Overall On-Boarding Program Success

Please indicate the importance to the overall success of your on-boarding program of each of the following components?

(N=10) (N=28)

Pharma/Device Segment Total Benchmark Class

75%

75%

64%

64%

61%

57%

54%

18%

25%

29%

29%

18%

36%

7%Technology training/setup (e.g.,

using hardware & systems)

Collecting new hire feedback onthe process

General employee orientation(e.g., HR forms, benefits

instruction, corporate policies)

Introduction to corporate culture

Introductions to trainingcurriculum

Job success guidelines

Corporate overview (e.g.,mission, history, values)

Very important Somewhat important

100%

80%

70%

60%

60%

60%

60%

20%

30%

40%

40%

20%

Introductions to trainingcurriculum

Technology training/setup (e.g.,using hardware & systems)

Collecting new hire feedback onthe process

General employee orientation(e.g., HR forms, benefits

instruction, corporate policies)

Commercial strategy overview(e.g., products, goals)

Networking opportunities withpeers

Job success guidelines

Very important Somewhat important

Both segments placed high importance on two things: Training on an organization’s technology – which is important to quickly bring new hires up to productivity - and collecting feedback from new hires on the on-boarding process – a trait of continuous improvement that ensures the on-boarding process is not static.

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Other, 12%

1 day, 19%

Not offered through

onboarding program, 19%

2 days, 12%

Less than one day, 38%

Other, 20%

1 day, 20%

Not offered through

onboarding program, 20%

2 days, 10%

Less than one day, 30%

Technology Training a Day or Less at Many Companies

How long is spent during on-boarding acclimating new hires to company technology and systems?

(N=10) (N=26)

Pharma/Device Segment Total Benchmark Class

*Other Responses from the Total Benchmark Class- 6 days, Manager does based on needs, self service for IT help

*Other Responses from the Pharma/Device Segment- Manager does based on needs, self service for IT help

Half of both segments devote a day or less to acclimate new hires to a company’s technology and its systems. Twenty percent, meanwhile, don’t offer technology training as part of their on-boarding programs – a recognition that technology is a part of everyday professional and personal life and some groups require less extensive training.

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Standardization• “Creating a well-laid out and standardized

on-boarding schedule”• “Provide additional self-directed

development”• “Provide mandatory training during

orientation”• “Coordinate process across functions”

Technology• “Determine which items best covered live

vs. via e-learning”• “Technology access, with job aides on

how to use and access information”• “Synchronize systems so data feeds

seamlessly”

Set Expectations• "Provide basic commitments from the company

and expectations of employee during orientation”• “Solicit Feedback”

What are your top three lessons learned or best practices for rapidly and successfully on-boarding new employees?

Personal Interactions a Theme of Best Practices

Mentor• "On the job training and mentoring are most

effective”• “Implementing mentor program”• “Peer trainer to provide information on informal

workings of team/company”• “Discussion with high performers”

Relationships• “Need to leverage face-to-face time to

build relationships and communicate the most important things”

• “Connect with people that will help them do their jobs in the near future”

• “Long-term engagement”

Other• “Clearly train on focus products benefits,

features, specifications, advantages, competitive positioning and ability to do one stop shopping with our company”

Interactions with other employees – from sessions with leaders to mentor programs – was a theme that surfaced in many of respondents’ lists of best practices for successfully on-boarding new employees.

BEST PRACTICES,®

LLC13

Copyright © Best Practices®, LLC

Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business

practices, operating tactics and winning strategies of world-class companies.

Best Practices, LLC6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517

919-403-0251best@best-in-class.comwww.best-in-class.com

About Best Practices, LLC

Link for Report: Bringing New Employees Up To Productivity Quickly and Effectively