Doing Well By Doing Good: Improving Store Performance with Responsible Scheduling Practices at the Gap, Inc.
Forthcoming in Management Science
48 Pages Posted: 19 Jan 2021 Last revised: 29 Oct 2021
Date Written: June 6, 2021
We estimate the causal effects of responsible scheduling practices on store financial performance at the US retailer Gap, Inc. The randomized field experiment evaluated a multi-component intervention designed to improve dimensions of work schedules – inconsistency, unpredictability, inadequacy, and lack of employee control – shown to undermine employee well-being. The experiment was conducted in 28 stores in the San Francisco and Chicago metropolitan areas for nine months between November 2015 and August 2016. Intent-to-treat (ITT) analyses indicate that implementing responsible scheduling practices increased store productivity by 5.1%, a result of increasing sales (by 3.3\%) while also decreasing labor (by 1.8%). Drawing on qualitative interviews with managers and quantitative analyses of employee shift-level data, we offer evidence that the intervention improved financial performance through improved store execution. Our experiment provides evidence that responsible scheduling practices that take worker well-being into account can enhance store productivity by motivating additional employee effort and reducing barriers to employees adhering to the scheduled labor plan.
Keywords: Field Experiment, Retail Labor, Responsible Operations
Suggested Citation: Suggested Citation