1. 2018 TRENDS REPORT Planning for Growth in an Evolving Business Climate

2. WHO WHAT PAYNEWEST SURVEY METHODOLOGY Summer of 2018
Sent to hundreds of clients
WHAT
16 Question Survey
Summer of 2018
We received 121 responses •
business owners
C-level executives
risk managers
human resources and
administrative professionals
BUSINESS CLIMATE
RISK MANAGEMENT
WORKFORCE & LABOR
2018
TRENDS REPORT

3. INDUSTRIES REPRESENTED
DIVERSITY OF
INDUSTRIES REPRESENTED
Construction (29%)
Distribution and Trucking (15%)
Agribusiness (14%)
Retail (12%)
Non-profit (11%)
Manufacturing (7%)
Professional Services (7%)
Healthcare (4%) 4% 7%
29%
11%
12%
15%
14%
2018
TRENDS REPORT

4. REVENUE DISTRIBUTION WHAT IS YOUR ANNUAL COMPANY REVENUE? 20189%
17%
Under $5 Million 7%
$5 - $10 Million
$10 - $20 Million
21%
$20 - $50 Million
24%
$50 - $100 Million
$100 Million+
22%
2018
TRENDS REPORT

5. EMPLOYEE DISTRIBUTION HOW MANY EMPLOYEES ? 2018 TRENDS REPORT Under 10
1% 6% 4%
Under 10
11%
33%
20%
,000
25%
1,000 +
2018
TRENDS REPORT

6. BUSINESS CLIMATE Looking ahead–where do you see your business in the
next
5-10
years?
2018
TRENDS REPORT

7. INDUSTRY TRENDS – NEW MARKET EXPANSION Construction 31% Agribusiness
35%
2018
TRENDS REPORT

8. RISK MANAGEMENT What are the primary risks facing your business today?
Lack of qualified new hire candidates (27%)
Regulatory (18%)
Safe Workplace (17%)
Future leadership (9%) 3% 4%
27%
Cyber security (4%)
Supply chain disruption (4%)
Loss of key clients (4%)
Technology (4%)
Reputation damage (4%)
Product concerns (3%)
Natural catastrophes (3%)
Distracted driving (1%) 9%
18%
17%
2018
TRENDS REPORT

9. 54% 29% WORKFORCE AND LABOR How do you feel about your
retain quality employees?
ability
to attract and
54%
Find it challenging to
29%
Find it challenging to
attract and keep
fill
specific
positions.
good
employees.
2018
TRENDS REPORT

10. LABOR SHORTAGE Vocational training is back in the
U.S., as companies scour high
schools for
historically
rate.
workers amid a
low
unemployment
2018
TRENDS REPORT

11. WORKFORCE SOLUTIONS Trade education programs Depth chart planning•
Trade education programs •
Depth chart planning •
Automated
processes
2018
TRENDS REPORT

12. RISK MANAGEMENT Safety culture Liability/business continuity
Cybersecurity
2018
TRENDS REPORT

13. SAFETY CULTURE Written Safety Plan Employee Safety Training
90%
78%
Employee Safety Training
Early return-to-work program
61%
Use of outside professionals to manage safety
42%
19%
Employee Incentive for reduced injuries
Management Incentives for reduced injuries
13%
2018
TRENDS REPORT

14. SUCCESSION PLAN 58% do not have a formal, documented succession or
exit
plan.
No (58%) 5%
Yes (37%)
37%
58%
I haven't thought about
transitioning my company (5%)
2018
TRENDS REPORT

15. CYBERSECURITY
2018
TRENDS REPORT

16. CYBERSECURITY
2018
TRENDS REPORT

17. RISK SOLUTIONS Cybersecurity assessment Adequate liability coverage •
2018
TRENDS REPORT

18. NATIONAL TRENDS
87% of employers say improving employee retention is a critical priority
56% are concerned about affordability of employee health insurance
52% have trouble filling open positions with qualified workers, especially retirements of skilled employees
2018
TRENDS REPORT

19. SOLUTIONS Work Comp and Health Insurance results are tied together
Direct and Indirect Costs
Culture
- Safe Workplace
- Return to Work
- Wellness Programs
- Employee Engagement / Education
2018
TRENDS REPORT

20. THE FUTURE Emerging Risk Cyber Alternative delivery systems
Driverless autos
Culture shift with millennials in workforce
Substance abuse
Attracting and retaining talent
Legal liability
Broad economic uncertainty
2018
TRENDS REPORT