Employee Engagement SGC

At SGC, we believe that our employees are at the heart of delivering exceptional brand experiences to our customers. We are committed to promoting diversity and inclusion, and to retaining a talented and diverse workforce. We value the feedback provided by our employees, and use it to drive positive change within our organization. To support and empower our employees, we invest in training programs and provide competitive benefits. We strive to maintain a positive and caring workplace culture, which encourages growth, creativity, and collaboration. By fostering a strong and supportive work environment, we aim to build a sustainable future for both our employees and our customers. The exceptional work environment at SGC is evidenced by the high number of long-term employees who have chosen to spend the majority of their careers at SGC until retirement.

Demonstrating how much we value our employees and presenting enticing offers to attract new talent is crucial to our continued success. We increased our headcount by 10% throughout 2022 and continued to proactively engage our employees in an effort to bolster staff retention.

To attract and maintain a talented workforce, we allocate resources towards an array of initiatives, such as training, promoting diversity and inclusion, granting bonuses, and fostering a vibrant company culture. We provide employees with a comprehensive benefits package, which includes a 401(k) plan, medical, dental, life, short-term disability insurance, wellness programs, and paid leave for holidays, vacations, personal days, and mental health. Our compensation remains competitive within our industries.

Our Talent Acquisition team attended multiple recruiting events as part of our lead generation and brand awareness efforts. We partner with malls, brands, and key local events that allow us to create grassroots relationships with candidates in a more personal way. These events also help us to increase positive branding for SGC in our communities. For example, our Contract Centers segment sponsored two events at Comic-Con and a Social Media Day in which the Talent Acquisition team interacted with scores of visitors and potential employees.

July 2022 Employee Satisfaction Survey Results

The Office Gurus: Employee Engagement Spotlight

In 2022, our Contract Centers segment (also called The Office Gurus or TOG), which is our largest segment by headcount, conducted two employee surveys across its global locations.

TOG is committed to fostering a positive and supportive workplace culture that prioritizes employee satisfaction and well-being. We are actively analyzing the results of our employee survey to identify areas where we can further improve and inform our decisionmaking processes to develop employee-focused initiatives. To achieve this goal, we regularly collect feedback from employees and provide opportunities for continued professional growth.

December 2022 Employee Satisfaction Survey Results

As part of TOG’s promoting of a healthy work-life balance, we established our Flex Time Policy which offers all staff members 5 additional paid days off per year. We also started hosting wellness sessions after office events, fitness classes, and other special events for employees and implemented a mobility incentive and transportation services for employees who work in our facilities to incentivize easy access to the office so they can collaborate in person with other employees.

To promote a positive work environment and foster strong relationships among our employees, TOG organized and hosted a variety of events throughout the year. Events included holiday celebrations, a talent show, challenge days, and staff parties. These events serve as opportunities for our workforce to come together, interact, and collaborate more effectively in the workplace. By engaging in these events, we aim to create a supportive atmosphere that encourages open communication, cooperation, and innovation. Our commitment to organizing these events reflects our belief in the power of building meaningful connections among our employees, ultimately leading to enhanced productivity, job satisfaction, and overall well-being. We continually strive to provide a platform where our talented individuals can thrive, enabling them to contribute their best toward our sustainability goals and the success of our organization as a whole.

As part of celebrating our talented employees, we launched the Guru Market project aimed at providing Gurus (which is what we affectionately call our TOG employees) with an on-site platform to showcase their creative outlets by selling their products. This initiative enables employees to learn about their coworkers’ imaginative pursuits. In 2022, TOG hosted over 25 Work Can Be Fun Events that were attended by hundreds of Gurus.

Training And Development

We recognize the value our employees provide to the company and seek to assist each employee to maximize their knowledge and realize their potential. In addition to the regular training employees receive on a variety of topics, we also offer unique opportunities for them to expand their skill sets in specific focus areas.

Required Training

All employees are required to participate in biannual training that comprehensively covers key topics. The biannual training focuses on providing a detailed understanding of SGC’s business ethics policies, anti-discrimination, anti-harassment, anti-corruption, antibribery, health and safety practices, compliance, and other company-specific topics. We also require the completion of regular data privacy and data security training modules. Our training courses follow a regular cadence to enable employees to consistently make progress against their training goals.

SGC University

SGC University is the ultimate education hub for our employees. Employees participating in SGC University can participate in courses on competency-based topics throughout the year to become proficient in various skills. Competency-based courses at SGC University include topics such as training on the Lean Initiatives program covering the “Customer Create,” “Style Master Create,” and “Pricing” functional categories as part of our Lean Six Sigma management approach, emotional intelligence, and on-site safety. Initially created in 2021, we continually seek to enhance its offerings.

Each year, SGC University regularly receives positive feedback from employees on our training offerings. We are proud to provide the necessary tools to help our employees succeed in their professional lives, and we will continue to focus on progressing employee development by leveraging external resources for targeted learnings.

TOG offers an employee and management development program known as TOG University. Participants in TOG University develop key competencies for success in business through a multi-disciplinary business training curriculum. Now in its sixth year, TOG University provides employees with an avenue to continue developing their expertise and advance in their careers.

We continued to see increased growth and participation in TOG University after transitioning the program to a virtual platform during the pandemic. The number of TOG University Graduates in 2022 more than tripled compared to 2021, and the number of hours of training conducted approximately doubled from 2021 to 2022. TOG University was also revamped to incorporate a variety of new programs in 2022, including TOG-College, Strategic Account Manager (SAM) University, and Team Lead University, which establishes an internal progression program to ensure that our talent has a place within TOG as they continue to develop and grow. In addition to the new programs, we continued to add more specialized workshops to improve specific competencies.

In 2022, TOG University participants:

Logged thousands of hours of live training

• 7,200 hours of live, online training (webinars)

• 687 participant

Leveraged external training for special skills

• 450 courses completed

• 247 Gurus enrolled

• 9,335+ hours of external training completed

Completed thousands of TOG University courses via TOG’s online platform

• Graduation rate of 71.3%

• 10,770 courses completed

Continued to grow and expand TOG University offerings

• Revamp of TOG University with new programs

“Hey everyone, my name is Alex and I am currently an Operations Supervisor with TOG. My story started here 2.5 years ago as an agent. Never in my wildest dream did I see myself climbing the ladder of success in such a timeframe, or even climbing it for that matter! One thing I truly appreciate and would love to recommend to you all is our internal TOG University. Our training team goes above and beyond sharing their knowledge and resources so you can properly be equipped to succeed. I would say this particular opportunity allowed me to envision where I want to be in the future. It is a clear opportunity that everyone should consider so you can learn what is coming for you. Trust me, after completing it you will be more comfortable with the upcoming position for you!”

- Alex C.

DIVERSITY

AND INCLUSION WORKFORCE

As a global business, we promote and foster cultural exchange and appreciation among our diverse array of employees, suppliers, and customers. It is essential that we represent the communities we serve in the more than 10 countries our employees and stakeholders call home. We promote and foster cultural appreciation and understanding by encouraging our teams around the world to share their customs and holidays with each other. For example, our Branded Products segment continually honors Juneteenth as a paid holiday for U.S.-based employees.

SGC is committed to creating a diverse, equitable, and inclusive workplace to support our employees. As part of this commitment, we work diligently to cultivate a welcoming and open workplace by continuously improving our approach to recruitment, training, and employee recognition.

We detail all information on the steps we take to ensure a workplace that is free of discrimination in our employee handbook. In addition to the antidiscrimination policies and accommodations that provide an equitable working environment, we are clear and precise in defining harassment of all kinds and describing our reporting, investigation, and non-retaliation policies to promote a discrimination-free workplace.

BOARD OF DIRECTORS DIVERSITY

There always is more work that can be done to promote a diverse and equitable work environment globally. As SGC continues to grow, we continue to seek new opportunities to strengthen our ability to build a work environment in which employees can share their unique perspectives and reach their full potential.

Equal Opportunity Employer

17% Minority in the board of directors

*As of March

31,