Gap Inc. Pay Equity by Gender Project
In Depth Compensation Analysis Conducted to Validate Women and Men Employees Receive Equal Pay for Equal Work
Beth Roberts, MBA, Leader, Diversity & Inclusion and Analytic Services, Exponential Talent LLC
Caroline Simard, PhD, Leader Diversity, Workplace Transformation & Innovation Services, Exponential Talent LLC
Magali Fassiotto, PhD, Leader Organizational Design, Research & Evaluation Diversity, Exponential Talent LLC
Gap Inc. had performed an internal gender compensation analysis. Based on their findings, Gap Inc. concluded that they had equal pay for equal work. To validate their internal findings, Gap Inc. requested Exponential Talent perform its own gender compensation equity analysis using statistical testing.
Gap Inc. provided Exponential Talent with a complete dataset of pay information for employees globally (129,992 employees). The data included for each employee: annualized salary (in US dollars), gender, full time or part time status (FTE), employee tenure, span of control, level, job code, and geography.
Exponential Talent set out to test the “equal pay for equal work” hypothesis – that is, finding out whether there were significant differences in the average pay of women and men within a similar level and job function controlling for tenure, FTE status, and span of control, an “apples to apples” comparison. Exponential Talent tested the hypothesis globally and within each of the major retail geographical areas of Gap Inc. (US, UK, Canada, Japan, and China).
The Exponential Talent analysis found that, controlling for relevant factors there is no significant gender wage difference between women and men at Gap Inc. within job codes globally and in any of the major retail geographies providing an “apples to apples” comparison of wages by gender. The hypothesis of “equal pay for equal work” at Gap Inc. was confirmed. This conclusion was found to be true at Gap Inc. globally, as well as for each of its five largest retail regions (US, UK, Canada, Japan, and China).
As a result of Exponential Talent’s confirmation of Gap Inc.’s initial findings, the company was able to communicate its sustained commitment to gender equality globally to its employees.