SOURCE: Quest Diagnostics
DESCRIPTION:
As a company that believes an inclusive and diverse workforce better positions us to serve our communities and customers, we prioritize offering equitable compensation to all employees and to supporting the advancement of women and minorities. We are proud to present the following information on our efforts to hire, support, develop, and compensate all employees equitably.
Promoting an inclusive culture
Sourcing, hiring, promotion, and talent management
It is a top priority for Quest’s dedicated Talent Acquisition team to proactively source female and minority candidates to fill roles in our employee population. When Quest hires or promotes from within, we consider each candidate’s qualifications and experience as well as market-based information in order to remain externally competitive and internally equitable. Quest uses narrow role-based salary ranges to ensure that new hires and continuing employees alike are compensated equitably. Our Human Resources function oversees our annual talent review process to ensure that performance reviews are fair and well documented and to prevent unconscious bias.
Employee Business Networks
Our 9 Employee Business Networks work closely with their Executive Sponsors and Human Resources to provide their members with development opportunities, including networking, mentoring, and job shadowing. Their 2020 activities are highlighted on page 33 of this report.
Gender Parity Collaborative
Quest is proud to be a founding member of the Healthcare Businesswomen's Association’s Gender Parity Collaborative, a group of healthcare and life sciences companies dedicated to developing and committing to action steps to promote women in the workplace and accelerate gender compensation parity. The Collaborative leverages data from McKinsey’s Women in the Workplace study, which Quest has participated in since 2015.
Training and resources to fight discrimination
Quest is serious about fostering an environment that is free of discrimination. Team leaders receive Respect in the Workplace training, which includes unconscious bias training, with the goal of nurturing an equitable workplace. We offer several options for reporting and resolving issues that arise, and these options are documented in our Human Resources policies. In addition, complaints can be reported through a variety of channels, such as by registering anonymously with our Human Resources Service Center or the CHEQline, our compliance reporting system. Our well-established Open Door Policy provides, among other things, an opportunity for all employees to resolve work-related problems without fear of retaliation or retribution. When we obtain knowledge of possible discrimination, we thoroughly review and address those issues.
Our equitable compensation program
Compensation packages
Our compensation programs are designed to attract, retain, and motivate talented and diverse employees, and to help drive the execution of our business objectives and strategic goals. Our competitive base pay reflects a number of factors, including individual roles and responsibilities, skills, experience, and performance. We also have designed our compensation programs to align with market compensation (in the relevant geography, as appropriate) based on robust market benchmarking, ensuring equitability. Beyond salary, Quest’s compensation package includes variable pay, other forms of financial recognition, and a comprehensive benefits offering, including 401K, paid time off, workplace flexibility, remote work options, and healthcare coverage. We also compensate nonexempt employees with overtime pay and pay shift differentials when appropriate.
Centralized oversight and common review
We maintain a centralized function to oversee our compensation processes and structures, and to help management ensure that pay outcomes are consistent with role, responsibilities, skills, experience, and performance. Quest generally allocates funds toward salary increases within our annual budget process, and conducts an annual salary review for each employee that enables managers to identify inappropriate disparities. A common review period for all employees, coupled with narrow salary ranges and related guidelines, allow managers to review compensation across teams holistically and help ensure pay equity. Employees brought into the Quest workforce through acquisitions are generally migrated to Quest benefits programs and have their compensation aligned with appropriate Quest pay ranges as soon as practicable following consummation of the acquisition.
Survey participation
Quest participates in compensation surveys conducted by multiple nationally recognized compensation consulting firms and data providers. These surveys provide valuable insights and help us benchmark compensation, establish market- linked salary ranges, and incorporate market trends, including geographical variation where appropriate. In addition, Quest also conducts our own surveys of all employees in order to solicit feedback on employee concerns, experiences, and compensation, among other things. The results of these employee surveys are analyzed by gender, race, and ethnicity, and we take action to appropriately address ascertained issues. Further, as a federal contractor, our locations are regularly audited by the US Department of Labor.
Reviews and analyses
We regularly conduct reviews to ensure that the compensation and composition of our workforce remain aligned with our goals. We have performed a targeted, rigorous statistical analysis of our compensation practices (utilizing independent third-party advisors), including with respect to gender, race, and ethnicity. Our reviews and analyses have not uncovered any statistically significant compensation disparities based on these demographics. We also review data regarding the diversity of our workforce on a regular basis.
Compensation Committee
The Compensation Committee of our Board of Directors establishes the goals and objectives of our executive compensation plans and determines the compensation of our senior leaders under those plans. The Committee regularly receives and considers investor feedback regarding Quest’s executive compensation program. The Compensation Committee annually reviews our employee compensation programs to determine whether they encourage excessive risk taking and to ensure they promote our goals, including with respect to pay equity across gender, race, and ethnicity.
Equal Employment Opportunity-1 2020 data
Quest Diagnostics prioritizes diversity across the entire talent lifecycle with the goals of ensuring transparency and identifying opportunities for action. Our commitment to an inclusive culture and diverse workforce begins with our “CTC Framework, developed in 2020. Our 3 pillars of Culture, Talent, and Community ensure our approach is well balanced across our priorities.
We support our employees throughout their careers at Quest: from onboarding, through performance, development, and career progression. We celebrate the different ethnicities, ages, cultures, and lifestyles that make up our workforce. As the marketplace becomes increasingly global, our ability to meet the needs of our customers, patients, physicians, suppliers and shareholders is enhanced by our demonstrated commitment to diversity that mirrors the communities where we live and work every day.
See page 39 of the report for EEO-1 2020 data
Workforce breakdown by gender, race, and ethnicity
At Quest Diagnostics, our diverse workforce is one of our competitive advantages. As part of our commitment to Inclusion and Diversity, this year we are providing new views of the diversity of our workforce. Quest is proud to continue its journey to provide more transparency in our reporting.
Read more in our 2020 Corporate Responsibility Report
KEYWORDS: NYSE: DGX, Quest Diagnostics
