Elzinga & Volkers Best and Brightest Supplemental Information 2019

2019 SUPPLEMENTAL INFORMATION

BEST & BRIGHTEST COMPANIES TO WORK FOR

& CONSTRUCTION PROFESSIONALS

TABLE OF CONTENTS

COMPENSATION, BENEFITS & EMPLOYEE SOLUTIONS

EMPLOYEE ENRICHMENT, ENGAGEMENT & RETENTION

EMPLOYEE EDUCATION & DEVELOPMENT

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PAGE 06

PAGE 08

RECRUITMENT, SELECTION & ORIENTATION

EMPLOYEE ACHIEVEMENT & RECOGNITION

COMMUNICATION & SHARED VISION

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PAGE 12

PAGE 14

DIVERSITY & INCLUSION

WORK/LIFE BALANCE

COMMUNITY INITIATIVES

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PAGE 18

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STRATEGIC COMPANY PERFORMANCE PAGE 22

COMPENSATION, BENEFITS & EMPLOYEE SOLUTIONS 2018 HIGHLIGHTS for their safety in construction knowledge at monthly company-wide safety meetings • Gifts to open with their families on Christmas morning (each gift was accompanied by a hand written note to the employee and, in many cases, to the employee’s spouse) • Our company demographic age is young, so we always make it a priority to welcome new babies with an E&V onesie, a gift card and a pack of diapers • Valentine’s Day treat for female office staff when the CEO paid for everyone to get manicures or pedicures, wine and chocolate in the middle of the work day • Tuition reimbursement with a paid day off and special gift after their graduation • $1,600 in referral bonuses paid out to employees who successfully referred a new hire • Full range of employee benefits: medical, dental, vision, life and disability • Performance based pay adjustments • 401K match = $137,000 in 2018 • Special holiday celebrations • Hand-written notes from the CEO to employees and their spouses • Hardship funds • Leadership teams and coaching • E&V YOUniversity training opportunities • Employee Hall Pass: An extra paid day off to spend at school related events with children, siblings, nieces or nephews. 210 hours were used by 26 employees in 2018.

• Large percentage of profits shared through a performance-based bonus program • Gym reimbursement for employees who choose to participate • Special training programs to assist with personal growth, including finances • $2,400 in cash bonuses given to individuals

• Free flu shots and TB testing during a company-wide meeting in order to capture as many employees as possible • Opportunity to donate blood onsite during companywide meetings • Health insurance renewal (avoided a 9% increase if we stayed the same and managed to get better benefits with no change to employee co-pays) • Simplified review process with a new uMap software program • Annual reviews changed to coincide with employee anniversary dates • Implemented live streaming for meetings, which is beneficial for our out of town employees • Cyber attack training to assist our employees in recognizing scams • Various retreats throughout the year for fellowship, planning and team building (attended by 50% of the company)

2018 EMPLOYEE EVENTS

LAUNCHED A NEW ONLINE BENEFIT PROGRAM In 2018, we introduced our “Employee Navigator” program, an online benefit enrollment system for all employees. This new portal allows a completely electronic benefit enrollment system which employees can access from any electronic device. It allows employees to make changes to their information during the year, keeping our records more up-to-date and accurate.

ENROLL IN YOUR BENEFITS: One step at a time Step 1: Log In

Go to www.employeenavigator.com and click Login • Returning users: Log in with the username and password you selected.

Click Reset a forgotten password.

• First time users: Click on your Registration Link in the email sent to you by your admin or Register as a new user. Create an account, and create your own username and password.

Step 2: Welcome!

ANNUAL CHRISTMAS PARTY We hosted an outstanding Christmas party that had food, music, entertainment and over $10,000 in prizes. In addition, we reserved a block of rooms at a nice, local hotel and covered over 50% of the cost for any employee and their guest.

After you login click Let’s Begin to complete your required tasks.

Step 3: Onboarding (For first time users, if applicable)

Complete any assigned onboarding tasks before enrolling in your benefits.

Once you’ve completed your tasks click Start Enrollment to begin your enrollments.

TIP

Enrollment Instructions

if you hit “Dismiss, complete later” you’ll be taken to your Home Page. You’ll still be able to start enrollments again by clicking “Start Enrollments”

Step 4: Start Enrollments

After clicking Start Enrollment, you’ll need to complete some personal & dependent information before moving to your benefit elections.

TIP Have dependent details handy. To enroll a dependent in coverage you will need their date of birth and Social Security number.

BOWLING PARTY We invited all our employees to participate in a company-paid bowling party one afternoon, during work hours, to give everyone time to relax and reconnect with coworkers they may not always get to see.

REVISED OUR STANDARD OPERATING PROCEDURES One improvement we took on in 2018 was to revise our company handbook, or Standard Operating Procedures. We updated and revised to the content enough to shorten it to half the length it was before without losing any important content.

INCREASED USE OF EMPLOYEE ASSISTANCE PROGRAM Our employee assistance program is a company-paid service to help employees and their families with a variety of personal, family or work related issues. Through regular promotion and encouragement, we were able to increase employee participation in the program by 50% in 2018.

4,000 DAYS CELEBRATION A family picnic was held to celebrate 4,000 days without a lost time injury, a big feat in the construction industry and a testament to our employeecentric culture.

EMPLOYEE ENRICHMENT, ENGAGEMENT & RETENTION INSIDE OUR WALLS

NEW OFFICE SPACE Elzinga & Volkers’ headquarters are located in Holland, MI, not far from the Lake Michigan shoreline. However, with 125 “local” employees, we have personnel in multiple counties, many of whom live in Grand Rapids and the surrounding area. For years, many employees have desired a Grand Rapids office for a few reasons: one - to save on commuting time, two – to have a Grand Rapids location for client meetings and three – for a quiet place to get work done in between scheduled meetings in Grand Rapids.

• Management golf outing • Continued improvement of our employee onboarding process • Refinement of our employee intranet to include birthdays, work anniversaries, upcoming events, employee forms and benefit enrollment information • Employee advancement and performance bonuses • Regular office management meetings • Business expansion • New office location in Grand Rapids for employees that currently commute • Business planning retreats • Monthly employee newsletter • “Savoring Our Successes” weekly meeting to share personal and professional good news with the whole office • Monthly safety and update meetings • Nationally recognized safety program • Employee Christmas party • Leadership open door policy • Annual project and field management retreats • Year-end bonus program • Chili cook-off with Michigan/MSU tailgate • Education reimbursement • Leadership breakfasts with field personnel

In 2018, the dream of a Grand Rapids office became a reality. The space, branded “The HUB”, will provide collaborative work areas for employees of E&V and it’s subsidiaries. When renovations are complete in early 2019, the space will fulfill multiple needs. A large conference room will provide an area for collaborative meetings with our trade partners and clients, and hoteling space will provide work-areas for project managers and office personnel occasionally working in the area. Our hope is that the new office will ease the burden of travel time, mileage and traffic for about 30% of our office staff.

ONLINE EMPLOYEE STORE It had been brought to the company’s attention that many E&V employees wanted to have the option to purchase additional logoed items from an employee store. To accommodate this request, a committee worked with a local company to develop a portal (linked to our employee intranet) that hosts several items for purchase. On September 1st we launched the store and communicated company-wide that the opportunity was available. In an effort to keep costs down, the store was “open” for two weeks. After the two weeks, the site was taken down so that orders could be placed with bulk buying prices rather than keeping it ongoing and having to pay for one-off items. Items on the store received no mark-up, as purchase price was the same cost that came from the vendor. E&V paid all set-up fees to keep costs as low as possible for employees.

Items in the first store included long-sleeved button down shirts, short sleeved polos, t-shirts, sweatshirts and pullovers in both men’s and women’s styles. Also available were hats, Yeti cups and a few gender specific items such as cardigans, Carhartt’s, etc.

Following the success of the first store, we launched a second one on December 1st. Items for the second store included some repeats with the addition of vests, jackets and items with our original, retro logo.

Going forward, we plan to maintain the store on a quarterly basis. We have asked the employees what additional items they would like to have available on the site and are beginning to receive some great ideas for both clothing and non-clothing (golf balls, golf towels, drinkware) items.

PERSONALIZED HOLIDAY GIFTS Our CEO, Mike Novakoski, goes above and beyond when it comes to the holidays. Like many companies, we have year-end bonuses and a festive, off-site holiday party that includes spouses, but Mike goes further. He spends time with the crews of each project site by taking the teams to breakfast or lunch, allowing him the opportunity to not only learn more about them personally, but also use the opportunity to receive their feedback on what the company can do to make their jobs better (i.e. what kinds of tools or equipment would make them more safe, efficient, etc.).

We also have a second holiday party in the office. For the last couple of years, the last day in the office prior to the start of holiday break we have a progressive lunch. Employees are encouraged to wear their best holiday pajamas, ugliest sweater or some other festive attire. At noon, we meet in the conference room to kick off the afternoon, hear about the different stations and share excitement about the upcoming holiday. There are games and trivia throughout the office as well to encourage mingling and interaction.

Finally, Mike takes the time to make a personalized gift for each family.

At the beginning of December, each employee is given a box addressed to their family to be opened on Christmas morning. Each box contains a personal, hand-written note from Mike, to the family. Gift boxes are tailored to each specific family. Contents may include lottery tickets, candy, gift cards to local restaurants, cash, kids items, etc.

EMPLOYEE EDUCATION & DEVELOPMENT 2018 HIGHLIGHTS

• Updated certification tracking program • Annual Stakeholders Meeting • Corporate, company-wide safety meetings with a main topic presented each month by an industry expert • Onsite safety meetings • Monthly in-house training through the E&V YOUniversity Program • Project management & field management meetings • Educational reimbursement programs for MBAs and other education programs • Mentorship programs • Summer internship program (in 2018 we had 5 total interns with 3 trade specific) • Safety Manual distributed to all employees and continuously updated • Quality Standard Manual distributed to all employees and continuously updated • Field Managers/Foremen Meetings where industry experts are brought in to discuss best practices of their trades • Field personnel onboarding and new hire training that is specific to their position with Elzinga & Volkers • Online safety training, with over 300 courses, available 24/7 to all employees • Hosted lunch & learns and brought in industry experts to introduce new products

• • • •

Michigan Safety Conference attendance CET Division Visit Project Management safety walk through Time to attend training programs through local industry associations or renew certifications in categories like: • Leadership Training • Carpentry II • Construction Documents • Safety Training • GCI Captive Workshops (2) • OSHA 10 & 30 Hour • First Aid, CPR & AED Training • Lift Operator • Hilti Firestop Certification • Reporting • Near miss reporting • Incident reporting • Quality incident reporting • Ladder Safety • Silica Standard • Qualified Rigger • Scaffolding

$111,000

spent on employee training and development in 2018

LUNCH & LEARNS In addition to the specific trade contractor training sessions held at corporate safety meetings, E&V hosts industry and trade specific lunch and learn sessions. The majority of these are targeted towards our preconstruction division, project managers and field managers. Our first lunch and learn of the year was on Dur-a-flex epoxy flooring, it’s applications and what to do and look for in order to prevent epoxy flooring from failing. We had an MEP design firm review the new Michigan updated energy codes that were put into place in October 2017 and the many different items that affect designs and construction projects. We also had a lunch and learn on soil stabilization and how our particular company can assist with project sites. We learned about an integrated project delivery system related to steel design and looking at all the components of steel that are designed into a building from foundation rebar to structural steel, mezzanines and roofs. Our latest lunch and learn this year was from an architectural openings & flooring company focused on the products they can offer our construction company.

E&V YOUNIVERSITY In 2018, Elzinga & Volkers focused on a growing our education initiative called E&V YOUniversity. E&V YOUniversity is a monthly meeting that covers a variety of topics. These classes are hosted my our own employees who specialize in a certain topic, but are open to every employee who wants to focus on professional development. The classes are held at either our office in Holland or an outside location.

The majority of these topics are derived from employee surveys. We also live stream and record these classes to make them available to our national team or anyone who was unable to attend. The presenters for these classes are SME’s, or “Subject Matter Expert’s”, who have extensive knowledge of their topic. The topics range from proper carpentry techniques to stress management.

OTHER EDUCATIONAL PROGRAMS E&V supports these additional educational opportunities: • Employee participation in Chamber of Commerce leadership programs through five local chambers • Executive team attendance at multiple training/educational sessions hosted by the Young President’s Organization (YPO) each year • Operations staff attendance in leadership training through the Associated Builders and Contractors of West MI • Annual Stakeholders’ Conference to keep employees informed of happenings in the company • Supported the CORE Construction Skills program through the Associated Builders and Contractors of West Michigan • Continued attending events for our insurance captive, a self-insured program where we are required to attend (2) board meetings and (2) workshops annually with our coowners of the GCI Captive • Covered the cost of various training certifications for our field employees

RECRUITMENT, SELECTION & ORIENTATION 2018 HIGHLIGHTS

• Company website overhaul including a dedicated “Careers” page with available positions and application upload form • Employee referral bonus program • Found new employees by referral, networking and word-of-mouth, internal job postings on our employee portal, and externally through college job boards and recruiting services • Incentive program for employees who work out of town • New employee orientation with CEO & COO • “Blueprint for Success” onboarding program extended beyond office staff to field operations • Office buddy system for new hires • Face time with human resources to review benefits and new hire paperwork • Office Leadership Team weekly check-ins with new employees • Open-house style interviews for available positions • Swag bag and small celebration for new hires on their first day

SHARING OUR PROJECT SITES Several of our employees participate in varying workforce development programs throughout the year to encourage students of all ages to consider the construction industry as their career path. We hosted mock interviews for Careerline Tech Center students, resulting in three new hires for us from that specific program in 2018. We hired 8 other people from local, student workforce development programs. We also attended career fairs at Michigan State University and Ferris State University, hosted groups participating in the 2018 Michigan Manufacturing Week, toured groups of students through our project sites over 10 times, and held open interviews at each of our office locations throughout the year.

MI CAREER QUEST EVENT In 2018, we participated in the local MiCareerQuest event. This event is an innovative, experiential career event created by local organizations which offers West Michigan youth a chance to explore hundreds of occupations in high-demand industries by visiting experimental booths and offers employers the chance to connect with tomorrow’s workforce.

The event is attended by over 9,000 students from area schools.

Our exhibit was a highlight of the event as a “progress in safety” inspired photobooth. The entire photobooth was created by our self-perform construction teams and allowed students to sit on a steel beam after “tying off” over a backdrop of the city. Each student or group of students was required to put on the appropriate personal protective equipment that would be needed in today’s construction industry before they could have their photo taken hanging above the city. Their photos were then printed at the exhibit and juxtapositioned with the age-old Rockefeller ironworkers photo to show the difference between where we are now with safety compared to 1934. The goal of this exhibit was to debunk some of the common myths still surrounding the skilled trades that say it’s dangerous work. While construction can still be a very dangerous occupation, the progress the industry has made as a whole toward safer project sites and processes is truly inspiring.

INCENTIVES A 20% increase in pay is given as an incentive to employees who work out of town to help alleviate the burden on their family.

Employees can earn a referral bonus ranging from $100-$500 for referring new employees who are on the job for three months.

Employees can sign up for a membership at any local gym and receive money for up to 10 gym visits per month to put toward their fees.

2018 BY THE NUMBERS ORIENTATION & ONBOARDING PROGRAM IMPROVEMENTS E&V likes to approach onboarding a little differently from many other companies. Instead of putting new hires in a room with videos to watch to get acquainted with the company, Elzinga & Volkers implemented our “Blueprint for Success” onboarding program that includes a holistic view of how each person joins the company, from the time they accept a position until they’re fully trained.

The program includes a welcoming email sent before they start their new job, a decorated office on their first day, an office buddy assignment, a gift bag with E&V logoed clothing, accessories, and a hard hat, a welcome breakfast is hosted with all office staff, and the executive team takes the new employee out to lunch on their first day. The new employee is then introduced on our company intranet and our next company-wide meeting. Over the course of the first two weeks, each new hire sits with “subject matter experts” in every category from marketing and operations to important meetings and job specific training. The process involves over 25 different people who invest a collective 80 hours per new hire.

However, like any process, we experienced some challenges in 2018 with this plan as different types of new hires needed to experience training in different orders or time frames and things were getting missed. A subcommittee formed to review how this could be fixed moving forward and eventually created five custom onboarding “paths” depending on the role the person would fill and centralizing some of the responsibilities.

Certain people were also assigned to specifically follow up with each new hire after their first two weeks to ensure all trainings are complete and ask them for feedback on the process. This onboarding program has served us well for several years now, but there will always be ways to improve it!

48

new hires

11

new hires from student workforce development programs

10+

site visits for student groups

13

people referred a hired employee

$1,600

in referral bonuses paid

$52,857

paid in incentive bonuses for employees who worked out of town

EMPLOYEE ACHIEVEMENT & RECOGNITION 2018 HIGHLIGHTS • Public recognition for major project wins • Performance-based bonuses • Personalized notes and gifts of appreciation from the CEO • Recognition and rewards for small successes at departmental meetings • Special recognition for completing higher education, training and certifications • Milestone celebrations for birthdays, anniversaries and retirement • Recognition for job promotions • Service awards with gifts • Good job letters displayed at company-wide meetings • Employee growth plans and goal setting through employee uMap software program • Safety milestone celebrations • Shout out cards • Retirement parties (Maria Nykerk, Mike Parker, Brad Frey) • Personalized note from the CEO/President with year-end gift • Men’s and Women’s Retreats • Tradesmen Outing • Thanksgiving Office Party • Christmas Office Party • Michigan’s Adventure Employee Outing

SERVICE AWARDS Employees who reach certain milestone years of service are publicly recognized for their dedication to E&V. At one year, they are recognized at a monthly company-wide meeting. At five year increments after that, each person is recognized at our annual holiday party in front of the rest of the company and their spouses. This year, those who had completed five years of service were thanked individually as the leadership team took a few minutes per person to highlight their successes and accomplishments.

Anyone who had reached 10, 15, 20, 25, or 30 years with the company was honored with a “Facebook page update where we created a custom fake page for each person. Each one included a “Throwback Thursday” photo of when they started working for the company and quotes from their friends, family and coworkers on what that person means to them or fun memories of them at work. Each person also received a monetary gift based on their years of service.

SHOUT OUTS In 2018 we kicked off an initiative that engaged not only our employees but their families as well. A ‘Shout Out’ card was sent to each employee’s home and email giving them and their household the opportunity to recognize anyone for anything. Cards came back from spouses recognizing their spouse for the hard work they do and employees recognizing their fellow coworkers. The card was then shown to the executives of the company and a hand-written note was given to the individual being recognized noting that their value was being seen by many across the board.

COMPANY RETREATS The men’s, women’s and tradesmen retreats, while not new, continue to evolve into amazing events where each and every employee is encouraged to take paid time off from work to spend the day/night to reconnect with our peers. Oftentimes within the hustle and bustle of the construction industry, we can become invested in our projects/work and forget to take some time to get to know the people within our walls.

These outings are an important way to build lasting relationships and remind each other that we are on one team that works together for the common goal of being leaders in the industry. While the activities that take place at these events are meant to strengthen our bond, they also acknowledge our strengths. These strengths are brought to light by not only our own perspective and our bosses, but by our coworkers.

This year’s men’s retreat consisted of a day where office and field management, along with the executive team were notified in the morning that one of the events would put their driving skills to the test. After splitting up into assigned teams, everyone piled into designated vehicles and headed out to an indoor go-kart track. Points were tallied and the winners of the event were determined by the combined fastest lap times.

Once their bellies were full and knuckles returned to their normal colors, they set spent the afternoon and evening at a rental property engaging in team building exercises and of course some friendly competition.

This year event’s consisted of a scavenger hunt where teams needed to collect puzzle pieces, reassemble 4’ x 8’ sheets of plywood, chop wood, and race to put together wagons that would be later donated to local charities. At the end of the day, all of the points are tallied from the day and one team was announced an overall winner. To top it all off, an amazing dinner was served and each person was encouraged to spend the night to continue more fun of yard games, playing cards and hanging out by the fire.

For the ladies retreat, the women were randomly assigned another coworker to create a collage for as an activity. Each day leading up to the retreat, everyone was given the directive to pick a color, animal, figure and image that described this individual. Then at the retreat, the ladies sat poolside at their rental property and took turns sharing what they thought represented their assigned person. Everyone was spoken on and acknowledged for the individual that they are, pointing out traits that not everyone could even see in themselves! The next day, everyone piled into a bus with champagne and was taken to a cooking class at a local shop to bond while making pasta from scratch.

RETIREMENT Fortunately for E&V, we had the pleasure of working with 3 individuals that decided to spend the end of their careers with our amazing company.

Each month we have our annual Safety Meeting and at those meetings, these individuals were called up front to enjoy a friendly roast from their peers and each Executive Committee members took time to share a special story they experienced with them. Each individual received a special gift from our President especially tailored to them. After the meeting commenced everyone was invited to stay for cake and ice cream and share stories of the time spent working together.

COMMUNICATION & SHARED VISION 2018 HIGHLIGHTS

UMAP SOFTWARE In 2018, Elzinga & Volkers implemented a uMap software to better understand each employee as a whole person, inside and outside of work. Each employee has an individual login to work through the software program and complete questions about their personal and professional goals, top responsibilities at work, favorites, important people and pets, etc.

• uMaps • Monthly safety meetings • Business plan maps • Stakeholders Event • EVinsite (employee intranet) • Monthly company newsletter send to homes • Monthly project newsletters uploaded to employee intranet • 2020 painted picture • Smart365 - Sharing better ways to do things • Leadership teams • Outings • Quarterly touch point conversations • Friday celebration meetings • Monthly safety meetings • Office buddy program • Mentorship program • Culture offsite • Townhall meetings • Weekly L-10 team meetings • FLT Connection • Field fun day

The completed uMaps are used as an onboarding tool, in reviews to ensure the employee and their supervisor are on the same page, and as a way for management to connect with members of their teams in ways that are meaningful and unique to each person.

LEADERSHIP TEAM IMPLEMENTATION Here at E&V we have implemented two core leadership teams. Currently we have two groups, one for the office and another for the field. These are groups are made up of individuals who exemplify what Elzinga & Volkers stands for. The members are selected based on their character, performance and leadership skills. The groups are in place to run with various initiatives regarding company culture, safety and performance.

These teams have members from entry level to upper management positions within the company, some have been with E&V for 10 or more years, others are brand new. We believe that the employees who make up our company should be the individuals determining how best to move it forward. Being a member means that you are a resource for employees from top to bottom, part of that responsibility means listening to ideas, concerns or process improvements that could be implemented.

One initiative our Field Leadership Team implemented in 2018 was the “FLT Connection”, an email sent to field managers and foremen once or twice a month that covers a variety of topics including use of our employee intranet, major company initiatives, quality and safety. It has been a great way to share unmistakable things with the people who are working everyday on our project sites. This form of communication specifically supports our out-of-town field managers and staff in an effort to foster a strong connection with our employees who work locally.

CHRISTMAS PARTY YEAR IN REVIEW Each year at the company Christmas party, part of the event is a presentation or video recapping the year we had as a company. This year’s presentation covered: • • • • • • • • • • • • • •

a general recap new hires marriages new babies graphics on which states we worked in all year highlights of every major construction project that started in 2018 and every major contract completed overviews of major ongoing projects still in the works a list of awards we won as a company E&V YOUniversity classes offered business updates from each major division stats on man hours worked and major accomplishments recap of major initiatives launched photos from various events services awards

Many employees loved to hear updates from sections of the business they may not interact with as closely and we received many compliments from employees’ spouses or significant others on how interesting it was to be included in this level of communication.

ANNUAL STAKEHOLDERS MEETING In mid-January of 2018, we held our 5th annual company-wide stakeholders conference offsite. Taking cues from the formats of large conventions and public shareholders meetings, we hosted an afternoon of presentations, roundtable discussions, team building events, and socialization with all employees of the company. We shared important themes from the business plan, a look back at the previous year and a deep dive into marketing, safety, benefits, financials and operations for the upcoming year. The goal of these meetings is to equalize all our employees and position them all as stakeholders, or owners, of the company. It is an exciting time that will continue to be held annually at the start of each new fiscal year.

DIVERSITY & INCLUSION 2018 HIGHLIGHTS • Sponsored Latin American’s United for Progress event • Sponsored the West Coast Chamber of Commerce’s Minority Business Awards • Ladies appreciation lunch • Ladies retreat • Provide job applications on project site – hiring in the communities in which we work • New bidding software – Add attributes such as minority owned business, women owned business, veterans, etc.

• Working on ensuring site signage is bilingual as needed • Working on recreating our Safety Manual in Spanish

SITE COMMUNICATION Elzinga & Volkers provides construction services across the nation. With our role, comes responsibility to ensure each of our field personnel and our trade contractors are working safely so they can go home to their families each night. Elzinga & Volkers mandates that each employee has a right to expect a safe place in which to work. Management and corporate have come together to create a program that requires employees to accept the responsibility of working safely so that their lives, and the lives of their co-workers, are not endangered.

As part of our inclusion plan, E&V worked hard to ensure our basic posted safety rules are provided in English and Spanish on our project sites. The rules cover required personal protective equipment and guidelines for scaffolding, electrical work, fall protection, tool guards, housekeeping, and ladder/stair safety.

Our future goals include changing all site signage to be bilingual and the targeted recruitment of bilingual foreman and supervisors. We have found that a direct connection with our trade contractors who primarily speak Spanish lifts overall morale and buy-in to our safety and quality standards.

MALE TO FEMALE RATIOS Traditionally, the construction industry is known to be male dominated, both in the field and the office. According to National Association of Women in Construction, the national average for women working in the construction industry is around 9%. Here at Elzinga & Volkers we sit at 16% of our staff being women; 7% above the national average.

While we currently do not have any women in the field, over half of our office staff are women. They are in management positions, executives, operations support, accounting and more. They play an integral role in the success of the company and many have been promoted within the past year.

KELSEY JUERGENS Promoted to Marketing Coordinator in January 2018

ETHNIC MINORITIES Of the employees who volunteered to self-identify, it was recorded that 10% of our field workforce are ethnic minorities. This may not completely represent our company’s level of diversity.

We seek out qualified individuals for our employment needs throughout the year. We attend career fairs, list job postings online and have paper applications available at our main office. However, this year we’ve supplied each project site with a stack of applications. We want our project sites to closely reflect the communities in which we work in.

However, we are not just focused on our own employees, but also trade contractors as well.

RACHEL AUSTIN Promoted to Director of Corporate Trades in April 2018

In 2018 we transitioned to a new software that will help with bidding and estimating purposes. Through this software we can filter or sort by different categories, including minority owned businesses. This will help ensure that we are including these businesses when bidding.

COMMUNITY INCLUSION We believe supporting our community is a moral obligation as a business.

In the West Michigan region, we sponsor many events and charities through donations and our employee’s time. This year we supported several minority-focused events in our charitable giving.

Latin American’s United for Progress hosts an annual event to raise awareness about their organization and funding for its programs. In 2018, we sponsored the event as a Gold Sponsor. Latin American’s are the largest minority group in the Holland region.

TARA BROUWER Promoted to Experience Coordinator in August 2018

This year we also sponsored our local West Coast Chamber of Commerce’s Minority Business Awards. A successful community is one that embraces diversity and inclusion, and we wanted to celebrate their successes with them. As a sponsor, we attended the event to support the success of the minority groups represented and learn more about their businesses in the area.

Lastly, we continue to sponsor and fill teams for the National Association of Women in Construction annual golf outing.

NORMA FYNEWEVER Promoted to Experience Coordinator in August 2018

WORK/LIFE BALANCE 2018 HIGHLIGHTS • • • • • • • • • • •

• • • • •

Flexible work schedules Family focused benefits Special paid holidays A goal of work free weekends Wireless remote workplace technology Onsite cookouts Hall Pass program Spring Break Staycation Interoffice encouragement program (good job notes, etc.)

Paid lunches with your supervisor for your birthday or hitting work goals Birthday wheel - Every employee is allowed to spin the birthday wheel that has prizes of different cash or gift card amounts to win a prize they can use with their friends or families MI Adventures family day Employee bowling party Annual Christmas party Company retreats Valentine’s Day pampering

NEW IDEAS WE HOPE TO IMPLEMENT • Adopt a Family for the holidays • Family Picnic at the warehouse – inflatables, pig roast, carnival games for kids.

• West Coast Cash – lunch on us for birthday or anniversary • Impact Hours - Time to volunteer at a non-profit of the employee’s choice • Bring your kids/grandkids/nieces/nephews to work day • Bring your dog to work day • Movie night at the office • Office trick or treat for families • Increased vacation time to spend with family

HALL PASS PROGRAM In 2018, employees collectively used 220 paid hours using our Hall Pass Program, an employee benefit that allows all E&V employees to enjoy up to 8-hours of free time with their child, grandchild, niece or nephew at a school related function, such as classroom parties or activities, field trips, college visits or academic achievements. Employees are asked to send in a picture or program from the event to “show and tell” how they spent their time.

STAYCATION Each year, during elementary, middle and high-school Spring Break, we put on a “staycation” event. There are daily activities that employees, their spouses and their children are invited to attend. We try to host events interesting to both genders and a wide range of ages. These events are fully paid for by the company. As an added bonus, employees are allowed to utilize their hall pass hours to attend with their children.

SPRING BREAK 2018

E&V STAY-CATION Monday, April 2 Get your groove on at Tarry Hall Roller Rink - 3300 Fairlanes Ave SW, Grandville, MI 49418.

Please arrive between 1:30 and 2:00 PM.

Tuesday, April 3 Jump into the fun at Rebounderz! - 7500 Cottonwood Dr., Jenison, MI 49428.

Please plan to arrive at 10:00 for unlimited jumping.

Wednesday, April 4 It’s going to be a ball! Join us at John Ball Zoo - 1300 Fulton W, Grand Rapids 49504 between 1:00 and 1:30 PM for a day full of exploring animals!

Thursday, April 5 Create your very own fairy or dinosuar garden to take home at Koetsiers Greenhouse! Please arrive at 9:00 AM 1601 Spaulding Ave, SE, Grand Rapids, MI 49546.

Friday, April 6 Start Spring Break with a splash! Join us at 1:00 PM at the Holland Aquatic Center - 550 Maple Avenue, Holland, MI 49423.

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RSVP

Please RSVP for up to two events by Friday, March 30 to Morgan Weaver at: 616.395.1414 or morganw@elzinga-volkers.com Morgan will be present at each event so find her once you arrive and she will get you checked-in.

Please include the names of each attendees and the ages of the children when RSVP’ing.

MICHIGAN ADVENTURE Elzinga & Volkers puts so much emphasis on employees and their families. One of the family events we do annually is our trip to Michigan’s Adventures. We all enjoy lunch together with our families and then are off with the kids to the waterpark, water slides, roller coasters and other fun attractions that they have to offer! So much fun for so many ages and a great way to get to know our teammates and their families better!

COMMUNITY INITIATIVES 2018 HIGHLIGHTS • Hosting blood drives at our office • Giving our employees opportunities to help the community beyond their checkbooks • Getting our hands dirty and participating in volunteer opportunities • Supporting our employee passion for improving the communities in which they live and work • Building comradery between employees through community service • Employees participate in the selection of non-profit and community beneficiaries • Participating in local parades for various holidays (in 2018 our employees walked or drove floats in 6 local parades!)

• We, as a company, are proud partners of many local organizations corporately, but our employees also use their time to serve on boards and committees for several local non-profits like the Grand Rapids Children’s Museum, Clays for Kids, Ottawa Country Skills Center Construction Program, 4H, Cadets, Habitat for Humanity, Boys and Girls Club, Young Professionals organizations, many educational and religious organizations and more.

COMMUNITY SAFETY FUND In 2018, we launched a Community Safety Fund as a way for our employees to give back to the local community and spread our passion for safety outside our walls. Each employee was given the option to sign up for a weekly payroll deduction to be added to the fund. They could designate whether they wanted the funds to be for the 2018 designated company or for the general safety fund to be used at the discretion of our Safety Leadership Team throughout the year.

The 2018 designated company was Bethany Christian Services. The funds raised by employee donations paid for first aid and CPR certification for local foster parents. The fund raised $2,033 with 32 employees participating. In 2019, our goal is to find additional ways to use these funds. Some ideas have been purchasing hard hats or other personal protective equipment for high school age students at local career tech centers, bike helmets for the Boys and Girls Club, schools AEDs, life jackets etc.

2018 DONATION RECIPIENTS BLOOD DRIVE TO HONOR ONE OF OUR OWN Our Community Initiatives Committee works with Michigan Blood to schedule the Blood Bus on site several times throughout the year and encourages employees to invite family and friends to donate.

One very special blood drive hosted in June of 2018 was to benefit Hope Network in honor of one of our employees, Justin Faulkner. Justin was struck by a vehicle in early 2018 while out with friends one night and suffered very serious injuries. After some time, he was moved to Hope Network, a local organization specializing in treatment for traumatic brain injuries. Through Hope Network’s help over the next several months, Justin was able to go home and be in the care of his loving family.

Elzinga & Volkers wanted to say thank you to Hope Network and honor Justin by having a blood drive. Michigan Blood donated $10.00 for every person who donated and we were able to raise $320.00 dollars for Hope Network as a thank you to them for all of the work they did to help in Justin’s success.

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pi nts o f b lo o d wer e d o nated by e &v em ployees i n 2018

lives wer e saved th r o ug h th e d o nati o ns , up 19% fr o m 2017

UNITED WAY DAY OF CARING On August 10, 2018, several E&V employees took time out of their work days to volunteer for the United Way Day of Caring annual event. This year, the crew reapplied gravel to walkways in local parks. A fun video of our team working can be viewed on our Facebook page.

Another way our team supports United Way is through volunteer payroll deduction donations. In 2018, the total contributions from E&V employees’ own paychecks was $3,202!

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St. Mary’s Parish Holland Hospital Allegan-Ottawa Shrine Club Fair Housing Center West Michigan Works!

Michigan Tech University Windmill Island Gardens Boys and Girls Club CMAA-IIT Catholic Business Leaders Forum Lakeshore Advantage Holland Historical Trust Ronald McDonald House of West Michigan Pine Rest Foundation Feyen-Zylstra Inc. The Little Red House Autism Support of West Michigan Grand Rapids Children’s Museum S.A. Morman & CO Clark Foundation The Right Place Foundation Brant M. Anderson Memorial Fund Down Syndrome Association Tri-Cities Youth Soccer Org David A. Smallegan Builders St. Mary’s Foundation Samaritas Holy Spirit Catholic Church Community Foundation of West Michigan Greater Ottawa County United Way Sunset Legacy Foundation Michigan Special Olympics City of Holland American Subcontractors Catholic Charities of West Michigan Talent 2025 Inc. Community Foundation of Holland and Zeeland Worksighted NAWIC Grand Rapids Ready for School Ottawa County 4-H Turning Point Healing Retreat In 2018, E&V donated over 15% of net income to non-profit organizations and foundations!

STRATEGIC PERFORMANCE 2018 HIGHLIGHTS

• Painted picture- A document was created to note the status of items created from the Painted Picture in 2017. This document notes which items have been accomplished and which are still in process. In a nutshell, it summarizes progress made toward achieving strategic company goals.

• Stakeholder’s Meeting- Communicated about company performance and set goals for 2018 • Trades Breakfasts- Every 4-6 weeks, a small group of trades workers have a meal in an intimate setting with key execs. The purpose of these breakfast meetings are to connect executive leadership with the ‘boots on the ground.’ The discussion is free flowing and gives leadership an opportunity to learn about what is going well, and how they can better support the team members putting work in place in the field. The topics can range from tools and equipment needed, to upcoming workload, to expressing gratitude for a job well done, and more.

• Sharing our success story with otherspublished a book and launched a new company to share the story with others.

• Friday Celebration- everybody in the office stops what they’re doing for a half hour to celebrate the good news- people share personal and professional good news from the week.

• Newsletters sent home to families- The introduction section of the newsletter is written by a member of the executive committee and highlights something notable going on in the company. Theses topics can range from company performance, to acknowledging groups of people for their contribution to the company’s success, to general themes. This section serves as a way to connect executive leadership to all employees and their families.

• Scorecard- Functional groups and departments have meetings that occur at a regular cadence and each of these teams has a ‘scorecard.’ Each item on the scorecard has a goal value assigned and the team is expected to report on these items during their team meetings. This scorecard measures if a team is ‘on track’ or ‘off track’ and is reported to other departments and groups when applicable.

CAFE CONVO Short for ‘Café Conversation’, the idea was born from wanting to ‘open the door’ to typical closeddoor meetings, a peek behind the curtain so to speak. Starting in 2018, some executive level meetings were held in an open space, the cafeteria/ kitchen/break area. All employees are encouraged to stop in, grab a cup of coffee and listen in on what’s going on corporately.

SMART365 Smart365 was launched in late 2017 as an initiative to focus on productivity and continuous improvement. Significant improvements were born from this initiative. Namely: • Developed a new way to track profit gain/fade on projects, reviewed on a per PM basis.

• Developed a new way to track margin gain/fade on each project per division, reviewed at least monthly with division leads – resulting in margin gain in all divisions. Division leads communicate this status to the team members involved in putting the work in place.

• Developed a method of communicating whether projects are on track/off track as it relates to the company’s greatest opportunities to gain or lose money – communicate regularly to ensure a course correction.

• New initiative for managing risk of ‘scope bust’ to protect margin.

• Established divisional margin reporting- Each trade division in the company now has a departmental profit and loss statement. This statement provides real time key performance indicators (KPIs) so that all involved parties know the status of their division(s).

LEADERSHIP TEAMS Elzinga & Volkers has two teams of employees who serve in an organizational leadership capacity and are connected to day-to-day operations. These groups are called the Office Leadership Team (OLT) and Field Leadership Team (FLT). The purpose of creating these groups was to engage a larger group of people in achieving strategic goals. This group of individuals serves as a conduit between the executive leadership, the people who cast the vision and determine corporate strategy, and the groups of people who put this vision into action. These teams send regular communication to provide insight into the progress made toward achieving strategic goals and sharing how what everybody in the organization is doing connects to these goals.

& CONSTRUCTION PROFESSIONALS