Caring for Our Employees

Caring for Our Employees Flexibility, work-life integration and rewards for performance

We know that financial incentives, work-life integration and benefits all play a key role in providing employees with what they need to make the most of their professional and personal lives, for themselves and their families as well as our business.

We were one of the first Fortune 500 companies to increase our U.S. minimum hourly rate. The increase took effect in two stages, first to $9 beginning in June 2014 and then to $10 from June 2015. While raising wages is often viewed negatively as a cost to business, our analysis revealed the opposite. By analyzing data across our U.S. store locations, we determined that increasing the hourly wage above previous levels to $9 per hour led to a substantial increase in the volume of applicants and significant improvement in the retention of hourly store employees.


Caring for our employees

Financial incentives, work-life integration and benefits all play a key role in helping our employees lead more fulfilling professional and personal lives.

Women have long played a key role in our business, and we believe strongly in equal pay for equal work. We became the first Fortune 500 company publicly confirm that we pay female and male employees the same for the same work around the world, from San Francisco to Tokyo.

Rewarding Performance

By providing financial incentives that reward strong performance, we help to attract and retain talent and grow our business. All employees at the manager level and above are eligible for a yearly bonus – which increases for higher level positions – that is based on a combination of company and individual performance. Employees at the Director level and above can also receive shares of Gap Inc. stock. We re-evaluated and revised our bonus structure in 2014 to better align each employee’s bonus with the company’s overall business performance.

Caring for Our Employees - At A Glance

While raising wages is often viewed negatively as a cost to business, our analysis revealed the opposite.

Work-Life Integration & Benefits

For many of our employees, the ability to adjust their work schedules unlocks greater productivity, engagement and retention. We offer a variety of flexibility programs to help employees balance their professional and personal lives.

A number of departments offer flexible scheduling programs that shift the emphasis from where and when work is conducted to the results delivered. This type of results-driven model enables employees to adjust their schedules and the way they work to suit their personal needs and circumstances.

Other programs are designed to accommodate the different life phases and needs of our employees and their families, from raising children to taking care of elderly parents.

  • Nationwide family support program – U.S. full-time and part-time employees have online access to child, elder and pet care resources. Full-time employees also benefit from back-up childcare and priority access to nationwide childcare centers.
  • Leave programs – U.S. employees can take extended time off from work to manage the demands of their family and personal lives.
  • Phase in/phase out – Employees can temporarily reduce their work hours before, during or after maternity or family leaves of absence.

Employees also receive a number of additional benefits that make up a significant portion of their overall compensation package. These include a variety of financial, health and wellness, lifestyle and community benefits that are intended to help our people and their families lead healthier, more productive lives.

  • Health and wellness benefits include:
    • Full medical, dental and vision coverage for full-time employees
  • Financial benefits include:
    • GapShare 401(k) plan matches employees’ contributions dollar-for-dollar up to 4 percent of base pay with 100 percent immediate vesting
    • Employee Stock Purchase Plan (ESPP) enables full-time and part-time employees to purchase Gap Inc. stock at a 15% discount quarterly
  • Work-life balance and lifestyle programs include:
    • Generous amounts of paid time off (PTO) that increase with promotion and seniority
    • Employee Merchandise Discount Program that gives full-time and part-time U.S. employees up to 50% off at Gap and Banana Republic and 25% off at Old Navy
    • Wellness programs, commuter benefits, and tuition reimbursement
  • Community Investment Benefits
    • The Gap Foundation matches or supplements employees’ contributions of money or time to local nonprofits

More data are available in the Data Tables.