4Cs Employee Opinion Comprehensive Analysis Report

1. 4Cs Employee Opinion Comprehensive Analysis Report Prepared for: RS Technologies September 2017 T: 866-802-8095 -F: 877-866-8301 -info@insightlink.com -www.insightlink.com

2. Background and Methodology This report presents the results of an organization-wide climate survey conducted on behalf of RS Technologies. RS Technologies commissioned Insightlink Communications to conduct an employee survey in order to gauge employees’ satisfaction on a number of issues, with a particular emphasis on determining the overall climate of the organization, assessing which factors are contributing to employee satisfaction and which are detracting from their satisfaction. To collect the information contained in this report, 81 employees were invited by email to complete the online survey and a total of 61 employees completed the survey, which represents a participation rate of 75%. All Insightlink reports are structured on the basis of our “4Cs” model of Employee Satisfaction, which categorizes most survey results into one of four factors that influence and sustain employee involvement. These four factors are: Culture, Commitment, Communications and Compensation. Key benchmark norms have been included in this report to give context for RS Technologies’ performance against a norm for all Canadian employees and against a representative norm for the Manufacturing industry. These benchmark norms are derived from an independent Insightlink study conducted annually among employees in Canada. This study is based on representative samples of employees that is rigorously designed to match the most recent Statistics Canada industry distribution.

3. Position Three-in-four RS employees (75%) work in non-supervisory roles. More than one-in-ten RS employees are senior managers (15%), while exactly one-in-ten (10%) are supervisors. 2. Which of the following best describes the type of work that you do?

4. Employment Status Approximately six-in-ten RS employees are paid hourly (59%), while just more than four-in-ten RS employees are salaried (41%). 3. What is your employment status? 

5. Length of Service One-in-ten (10%) employees have worked at RS for less than a year. Almost one-in-two employees (46%) have been at RS for 2-5 years, while four-in-ten (39%) have worked at RS for 5-10 years. These proportions are well above industry norms. Compared to the norms, an unusually small proportion of employees, just 5%, have worked at RS for 10-15 years. No current employees have worked at RS for 1-2 years or more than 15 years. 4. How long have you worked at RS Technologies? 

6. Overall Job Satisfaction Close to six-in-ten (59%) RS employees are satisfied with their jobs overall, which is 5 points higher than the industry norm. However, this level of job satisfaction is 6 percentage points lower than Insightlink’s recommended minimum target level of 65%, at which point organizations really begin to experience the benefits that come from having a satisfied and committed workforce. Recommended Minimum Target for Employee Satisfaction 65% 5. Overall, how would you rate your satisfaction with your job at this time? 

7. Most Satisfying Aspect of Working at RS Technologies RS employees appreciate their relationships with their colleagues, the variety of work, and the opportunity to use their skills in an innovative way. Several people value having a good amount of autonomy in their work. “Enjoy being part of a team advancing new tech into an old space.” “I have the freedom (and the trust of my superiors) to make decisions.” “Opportunities to develop new products, participate in the growth of a business.” “I enjoy the work-life balance they provide their employees.” “Helping to get a new innovative product out and make a profit.” “My fellow employees.” “The ability to be adaptable in my position, supported by a very excellent manager.” “Being able to do my job without supervision and knowing that it is being done right.” “Everybody has a common goal and it’s a low stress environment.” “I put 101% into my work and develop a love for whatever job I am called to do.” “The people I work with are wonderful. I could hug each and every one of them.” “I find the environment to be friendly with opportunity to learn more than simply my assigned job.” “Flexible schedule. Feel like I make a valuable contribution.” 6. What do you find to be MOST satisfying about working at RS Technologies?

8. Least Satisfying Aspect of Working at RS Technologies RS employees believe their pay is too low, both in absolute terms and regarding equity between employees. There are also concerns about opportunities for advancement, managerial practices, and willingness to help each other. “The extremely large pay gap between hourly employees on the floor. No single job is harder than another.” “Length of time to get to full wages.” “Rate of pay.” “I’ve been here 10 years and in the last 9 years only received a dollar in raise.” “Inconsistency with and between supervisors, as well as supervisors not able to make their own decisions!” “The opportunity for advancement – during my first part of employment here there was opportunity to learn many new positions, the last few years have been different.” “Lack of response on support from other team members.” “Some co-workers saying ‘not my job’ when asking for a hand.” “I am aware of my worth and what other companies pay for my position. RS is near, but below that value.” “The company does not seem to be keeping up with cost of living.” “Recognition for a job well done is slim to none.” 7. What do you find to be LEAST satisfying about working at RS Technologies?

9. Anticipated Tenure The anticipated tenure of RS employees broadly aligns with industry norms. Close to one-in-ten employees expect to work at RS for less than a year (8%) or for 1-2 years (8%). Two-in-ten (21%) employees anticipate 2-5 more years of employment at RS. More than one-in-ten employees expect 5-10 more years (15%), while close to two-in-ten employees anticipate 10-15 more years of employment (18%). Finally, fully three-in-ten (30%) employees expect to work at RS for at least 15 more years. This particular expectation is double the industry norm. 9. From this point on, how long do you see yourself working at RS Technologies? 

10. Progress in the Past 12 Months Seven-in-ten (70%) RS employees feel that, within the past year, their work experience has improved and that the company is moving in a positive direction overall. This exceeds both the industry and Canadian norms. 42. How much do you agree or disagree that, in the past 12 months, your experience of working at RS Technologies has improved and that RS is moving in a positive direction overall? 

11. Future Perceptions More than seven-in-ten (73%) RS employees are optimistic about the future of the industry, which exceeds the industry and Canadian norms. Almost six-in-ten (59%) employees are hopeful about the future of RS in particular, and almost four-in-ten (39%) employees feel the same way about the overall economy. Both of these perceptions align with the feelings of employees elsewhere. 44. How do you feel about each of the following?

12. Perceived Mission, Vision and Values Employees express it in their own individual ways, but there is a shared understanding among employees about the mission, vision and values of RS. “To make the world’s safest and most reliable poles from a company that cares about the world we live in and the people that work for us.” “Provide the world’s safest and most reliable utility poles from a company that cares about the world we live in and the people that work for us.” “Provide the most trusted utility pole. Caring, Quality, Teamwork, Growth, Integrity, Respect.” “Design, manufacture and sell the world’s strongest, safest and most reliable utility poles.” “The world’s safest, most reliable utility poles. Caring, Integrity, Teamwork, Respect, Growth, Quality.” “To offer a safe and respectful work environment that focuses on quality products and customer satisfaction, to strive for a growing success in the marketplace and do our part in keeping a clean environment.” “To make the world’s strongest and reliable utility poles through craftsmanship and innovation.” “To build quality poles for customers and safe environment for employees.” “To do our best every day to serve our customers needs, and provide the best quality composite poles.” “To provide the best composite utility poles in the world, that exceed our customer’s expectations without harming the environment.” 11. In your own words, please describe RS Technologies' mission statement, vision and/or company values.

13. Fulfillment of Mission, Vision and Values Two-in-three (65%) employees believe that RS currently fulfills its mission, vision and values. While this is notably higher than the industry and Canadian norms, it is still 10 points lower than Insightlink’s recommended minimum target of 75% in this area. Recommended Minimum Target for Fulfilling Mission 75% 12. In your opinion, which of the following statements best describes how well RS Technologies fulfills its mission statement, vision and/or company values? 

14. Company Values More than six-in-ten employees believe that RS lives up to its values of integrity (62%), caring (62%), delivering quality products (61%), and respect (61%). Just over one-in-two (52%) employees feel that RS exhibits effective teamwork. Finally, just under one-in-two employees (46%) feel that RS is firmly committed to growth. 13. Based on your own experience, how well does RS Technologies live up to each of the following company values?

15. Job Definition Three-in-four (75%) RS employees believe their jobs are well defined, which is notably higher than the industry and Canadian norms. 1. How well defined are the requirements and responsibilities of your job?

16. Perceived Workload Fewer than one-in-ten RS employees have more work than they can finish (8%) or are unable to complete their work during regular working hours (8%). These are both much less than the industry and Canadian norms. Greater than one-in-two (53%) RS employees have a challenging but fair workload, which greatly exceeds both the industry and Canadian norms. More than two-in-ten RS employees (22%) have a comfortable workload, which also exceeds the industry and Canadian norms. Unusually for the industry, close to one-in-ten (8%) RS employees report not having enough to do. 36. Which of the following statements best describes your workload at RS? 

17. Work Profile RS exceeds the performance of its industry peers on most aspects of its Work Profile. Close to nine-in-ten employees believe their work is challenging (89%) and that it contributes to the success of RS (89%). More than eight-in-ten RS employees find their work to be interesting (82%) and enjoyable (82%). Almost eight-in-ten employees feel their work makes good use of their abilities and skills (79%). All of these scores exceed the industry norms. More than six-in-ten RS employees (61%) believe their work is respected, which aligns with the industry norm. Finally, just over half of employees find their work to be stressful (54%) and repetitive (52%). The perception of stressfulness is less pronounced than elsewhere (67%), which speaks well of the work environment at RS. Feelings regarding repetitiveness align with the industry norm.

18. Work Profile 10. How much do you agree or disagree that each of the following describes the work that you do?

19. Satisfaction Profile RS employees are more satisfied with their work than their industry peers in most cases, and at least as satisfied as those peers in all other areas. Exactly eight-in-ten RS employees (80%) are satisfied with the performance of their immediate supervisor. This greatly exceeds the industry and Canadian norms (both 53%). More than seven-in-ten employees are satisfied with RS’s attention to safety (78%), their work schedule (73%), RS’s commitment to customer service (71%), and their relationships with the people they work with (71%). These also all exceed both norms. Two-in-three RS employees (65%) are satisfied with their physical working conditions, while six-in-ten are pleased with their opportunity to make suggestions and be involved in their work (60%). Once again both of these satisfaction levels exceed the norms. More than half of RS employees are satisfied with the performance of senior management (56%), the division of work within their department (56%), the overall environment/culture of RS (56%), and the tools/resources/equipment available to do their work (54%). This is the final set in which all satisfaction levels exceed the industry and Canadian norms. Close to half (46%) of RS employees are satisfied with their opportunity to learn new skills and grow, which aligns with the norms. Finally, more than three-in-ten RS employees appreciate their opportunities for advancement (38%), the amount of ongoing training and development they receive (38%), and the level of reward and recognition RS provides (31%). Satisfaction with training and development is better than for industry peers, while satisfaction with opportunities for advancement and reward and recognition is comparable to feelings elsewhere.

20. Satisfaction Profile 8. How satisfied are you with each of the following aspects of your job?

21. Satisfaction Profile 8. How satisfied are you with each of the following aspects of your job?

22. Comparison to Other Companies Employees offer a mixed review of RS in comparison to other places they have worked. They believe that RS is better in some ways, comparable in others, and that it lags behind in a handful of areas. More than six-in-ten employees believe that RS offers a superior level of customer service (66%), better attention to safety (65%), and higher quality products/services (61%). Attention to customer service exceeds the perception of industry peers, the other two are on par. Over half of employees feel that RS has a commitment to continuous improvement (54%) and is particularly open to innovation (51%). These are both better than average for the industry. More than four-in-ten employees feel that RS out-performs other places they have worked in several ways: commitment to integrity and business ethics (47%), responsiveness to market developments (47%), overall work culture/environment (44%), and treatment of employees (44%). These all align with the industry norms. RS trails its industry peers in all remaining perceptions in this category. Three-in-ten employees believe RS has particularly efficient operations (31% vs. the industry norm of 43%). Finally, more than two-in-ten employees feel that RS offers a superior approach to reward and recognition (24% vs. 35%) and to ongoing training and development (22% vs. 35%).

23. Comparison to Other Companies 14. In your opinion, how does RS Technologies compare with other places you have worked in each of the following areas

24. Comparison to Other Companies 14. In your opinion, how does RS Technologies compare with other places you have worked in each of the following areas

25. Performance Review One-in-three (33%) RS employees had their review within the last 3 months, which is better than the industry norm. More than two-in-ten (22%) people had their reviews within 3-6 months, while more than one-in-ten RS employees (15%) had reviews within the past 6-12 months. Close to one-in-four (23%) employees had their last review more than a year ago. Finally, almost one-in-ten RS employees (7%) have not yet had a performance review. 37. When was your most recent performance review?

26. Performance Review Slightly more than one-in-three (36%) employees are satisfied with the current performance review process at RS. 38. In general, how satisfied are you with RS Technologies' performance review program? 

27. Performance Review Fewer than half of RS employees are satisfied with every aspect of their most recent performance review. At least four-in-ten employees believe their reviews accurately define their job description (47%), fairly summarize recent performance (40%), and set worthwhile objectives (40%). Satisfaction with objective setting lags behind industry peers. One-in-three RS employees feel their reviews provide useful coaching (34%) and identify areas that require improvement (33%). The latter of these dimensions also trails industry peers. Finally, only three-in-ten (29%) RS employees believe their reviews help further their career. This is another area that trails the industry norm. 39. How would you rate your most recent performance review on each of the following attributes?

28. Leadership Effectiveness Close to nine-in-ten (87%) RS employees believe their immediate supervisor is an effective leader, and two-in-three (65%) employees feel the same way about RS senior management. These both exceed the industry norms, particularly the rating for immediate supervisors. 22. How much do you agree or disagree that you see evidence of effective leadership from:

29. Perceptions of Senior Management The majority of RS employees are satisfied with many dimensions of senior management performance. In addition, in almost all cases, RS employee perceptions of the performance of their senior managers exceed those of industry peers. More than six-in-ten employees (62%) believe that RS senior managers promote strong customer relations. At least half of RS employees are satisfied with numerous dimensions of senior management performance: conducting business in an open and honest manner (56%), treating employees with respect and dignity (56%), understanding the importance of work-life balance (55%), being accessible to employees (54%), and managing RS for profitability and growth (50%). Satisfaction on all of the dimensions listed so far exceeds that of industry peers. At least four-in-ten RS employees are satisfied with how well senior leaders invest in new product/service development (45%), and with the ability of senior leaders to present a clear vision of RS’s future (40%). Both of these perceptions align with the industry norms. Finally, approximately one-in-three employees are satisfied with how well RS senior leaders care about what is on their minds (37%), clearly recognize excellent performance (36%), and encourage opportunities for career growth (35%). Although there is some room for improvement here, all of these satisfaction levels do exceed the industry norms.

30. Perceptions of Senior Management 23. In your judgment, how good a job is SENIOR MANAGEMENT doing in each of the following aspects of the organization?

31. Perceptions of Senior Management 23. In your judgment, how good a job is SENIOR MANAGEMENT doing in each of the following aspects of the organization?

32. Suggestions to Improve Senior Management RS employees would like senior managers to address concerns about pay rates, to ensure that opportunities to advance and provide input are available, and to hold every employee accountable for their performance. “Every time a job posting comes up it’s almost like the company already has someone in mind for the job.” “There is no positive credit given if an employee comes up with new ideas.” “We are the lowest paid factory on Industrial Drive.” “Be a good listener.” “Employee reviews mean nothing, the laziest person gets paid the same as the hardest working employee.” “If you respect your employees you would not tell them they are worth less per hour than other employees doing the same amount of work.” “I strongly believe that they need to be more competitive with the wages and recognize that a small wage increase in almost three years is not enough in a economy that is becoming more and more costly.” “Never around to ask questions people have or suggestions.” “There is very little accountability for some employees and their performance.” 24. If you answered fair or poor on any of the items related to senior management, please explain why and give any suggestions for improvement you may have.

33. A healthy majority of RS employees are satisfied with every single aspect of their immediate supervisor’s performance. In addition, these satisfaction levels exceed those of industry peers in every case. More than three-in-four employees believe that RS supervisors treat them with respect and dignity (79%), understand the importance of work-life balance (77%), and are accessible to them (76%). At least two-in-three RS employees feel that their supervisors assign work fairly (69%), develop a cohesive team environment (68%), conduct business in an open and honest manner (68%), promote strong customer relations (67%), and provide clear direction, coaching and feedback (65%). Six-in-ten RS employees are satisfied with all remaining dimensions of their supervisor’s performance: clearly recognizing excellent performance (60%), resolving employee problems, complaints and grievances (59%), implementing programs and processes to achieve continuous improvement (59%), and encouraging opportunities for career growth (59%). Perceptions of Immediate Supervisor

34. Perceptions of Immediate Supervisor 25. Please rate how good a job your IMMEDIATE SUPERVISOR is doing in each of the following areas:

35. Perceptions of Immediate Supervisor 25. Please rate how good a job your IMMEDIATE SUPERVISOR is doing in each of the following areas:

36. Culture Evaluator One crucial measure of a company’s health is the gap between employee perceptions of the importance of a particular attribute of company culture and the company’s performance on that attribute. Gaps of 20 points or greater deserve prompt leadership attention. Insightlink measures 14 gaps pertaining to organizational culture. In the case of RS, all but one of these gaps measure at least 20 points. In order to hone in on areas that leaders should address first, this slide will identify the most significant gaps. Whether employees at RS trust and respect each other is the largest current gap (90% importance/43% performance*, 47 point gap). The following importance/performance gaps are at least 30 points: Whether employee loyalty is both valued and rewarded at RS (87%/48%*, 39 point gap), Whether employees believe that their colleagues at RS advance based on merit (85%/47%*, 38 point gap), If all employees are held accountable for their conduct and performance (97%/60%*, 37 point gap), Whether conflicts at RS are resolved effectively (93%/57%*, 36 point gap), If RS Technologies has established a culture that communicates high integrity and ethical values (90%/58%*, 32 point gap), Whether corrective actions are taken when employees do not meet performance standards (79%/48%*, 31 point gap), and Whether there is a good sense of morale (90%/60%*, 30 point gap). *The first number represents the percentage of employees who believe the statement is “extremely important” or “very important”. The second number represents the percentage of employees who “agree strongly” or “agree somewhat” to the statement.

37. Culture Evaluator

38. Culture Evaluator- Importance vs. Performance - 28.-30. Please rate how important each of the following statements is to you. 32.-34. Please rate RS Technologies performance by agreeing or disagreeing with each of the following statements.

39. Culture Evaluator- Importance vs. Performance - 28.-30. Please rate how important each of the following statements is to you. 32.-34. Please rate RS Technologies performance by agreeing or disagreeing with each of the following statements.

40. Motivation Index The Motivation Index score of 72 indicates that RS has already achieved an above average motivational culture. Taking action on the suggestions in this report should drive the Motivation Index even higher. Insightlink’s Motivation Index is a straightforward single-number score that reflects an organization’s success at motivating and engaging their workforce and compares the average (calculated on a 0-100 scale) to a benchmark norm. The benefits of increasing the Motivation Index include improved morale and job satisfaction, enhanced productivity, greater competitiveness and higher revenues, as well as decreased employee stress, less absenteeism, reduced turnover and fewer costs related to turnover.

41. Strength of Commitment- To RS Technologies - Close to eight-in-ten employees (78%) feel strongly committed to the success of RS. This is well above both the industry and Canadian norms. 40. How strong a commitment do you feel towards RS Technologies? Would you say that you feel... 

42. Strength of Commitment- To Employee - Just over one-in-two (52%) employees feel that RS is committed to their personal success, which aligns with the norms. 41. Which of the following statements best describes how committed you feel RS Technologies is to you as an employee? 

43. Commitment Evaluator Only one Commitment gap exceeds 20 points, but two other importance/performance gaps come close to this threshold. Whether employees believe their career goals are being satisfied at RS is the largest gap (84% importance/57% performance*, 27 point gap). If employees feel secure in their position at RS is also a notable gap (93%/75%*, 18 point gap). The final gap of note concerns whether employees have the material and equipment needed to do their work correctly (97%/80%*, 17 point gap). *The first number represents the percentage of employees who believe the statement is “extremely important” or “very important”. The second number represents the percentage of employees who “agree strongly” or “agree somewhat” to the statement.

44. Commitment Evaluator

45. Commitment Evaluator- Importance vs. Performance - 28.-30. Please rate how important each of the following statements is to you. 32.-34. Please rate RS Technologies performance by agreeing or disagreeing with each of the following statements.

46. Recognition Index Exceeding the industry and Canadian norms, seven-in-ten (70%) RS employees have experienced opportunities to learn and grow in the past year, while more than six-in-ten (63%) employees have learned about their progress at work within the past six months. Essentially half (49%) of RS employees received recognition or praise for good work in the seven days prior to taking the survey, a proportion that aligns with industry norms. 35. How much do you agree or disagree that...

47. Satisfaction with Communications Four-in-ten (41%) employees believe that communications within RS is effective. Although this means most people at RS are not extremely or very satisfied with communications overall, the current level of satisfaction does exceed the industry and Canadian norms. 18. How satisfied are you with the overall effectiveness of communications within RS Technologies? 

48. Effectiveness of Communications One-in-two (50%) employees feel that communications from RS senior managers is effective, but only three-in-ten (30%) believe that their own communication to RS senior managers is effective. More than seven-in-ten RS employees (72%) feel that communication from their immediate supervisor is effective, and the exact same proportion (72%) feels this way about communication to their immediate supervisor. Finally, just three-in-ten (31%) employees believe that communication between RS departments is currently effective.

49. Effectiveness of Communications 19. How effective is communication:

50. Barriers to Communications RS Technologies actually fares better on typical barriers to communication than its industry peers. This is true for every single potential communication barrier. Eight-in-ten RS employees trust that information from their immediate supervisor is accurate (80%) and that such information is clear and complete (79%). More than seven-in-ten RS employees believe that senior leaders effectively keep all employees informed about the direction and goals of RS (75%), that the reasoning for changes is shared with those affected by the changes (73%), and that information from senior leaders is clear and complete (72%). At least two-in-three RS employees feel that managers and supervisors have effective communication skills (69%) and that it is easy to locate needed information when needed (66%). More than six-in-ten RS employees feel that information from senior leaders is accurate (64%), that critical information is shared in a timely manner throughout RS (62%), that they receive information in convenient ways (61%), and that ideas and suggestions receive fair consideration regardless of who makes them (61%). Finally, just under half (49%) of employees feel that RS management actively solicits their suggestions and ideas.