The document discusses governance and policies around contingent labor at a company. It provides an operational leadership structure to manage contingent workers on a weekly, monthly, and annual basis. It also outlines policies on maximum tenure lengths, termination processes, and requirements for approving extensions beyond one year. Open issues are identified regarding tracking tenure by hours worked rather than just time period, and ensuring proper reporting visibility of total tenure for workers who rotate between positions.

1. Contingent Labor:
June 2012
Business
Needs
Risks Reporting
Ongoing weekly, monthly and annual alignment

2. Contingent Labor: Governance Model
OPERATIONAL LEADERSHIP & WEEKLY MANAGEMENT
PROGRAM LEADERSHIP (quarterly)
** Sheila Peters, Executive Sponsor Flavio Esquivias, Finance
Paul Adams, Legal Chris Demuth, GID HR
Gaurav Agarwal, Strategic Sourcing Renee Minnis, Corp HR
Heather Gille, Strategic Staffing, (Team Lead) Mark Brennan, Exec Sponsor Corp IT
Heather Gille, Strategic Staffing
Wendy Patience-O’Brien, Strategic Sourcing
Emily Sullivan, Legal
Kean Foo, Corp IT (SME)
Weekly Management Log & Daily Support
IQ Navigator(Michelle Gates & Maggie Ferrens)
OPERATIONAL LEADERSHIP & MANAGEMENT (monthly)
-Policy questions - Overall Project Management
- Level 1: Maggie Ferrens, IQN - Wendy Patience- O’Brien
- Level 2: Wendy Patinece-O’Brien
-Level 3: Emily Sullivan, Legal
- Website - SME
- Level 1: Wendy Patience-O’Brien - Corp IT: Nina Callahan
- Vendors (new and changes) - GID IT: Kean Foo
- Level 1: Wendy Patience-O’Brien - IQ Navigator
- Maggie Ferrens, Program Director
- Michelle Gates, VP

3. Tenure Transition
3 Jun 4, 2012 Company Confidential
• Step down by end of 2013
• Targets set within each Division to align
with LRP
2010- 2011
• 24 months
• Must retire at 24 months2012
• 2013 Policy
• No exceptions2013

4. Approved Tenure Approach
4
FY2013
Up to 12 month
contract
3 month break or
Transition to FTE
Exceptions only:
1-5%
(approved by legal)
Grandfathers
(2012)
12 month contract
extension
3-6 month or transition
to FT (depending on
situation)
Target xx% of
transition by 2012;
Target yy% by 2013
FY 2013 Up to 24 month contract
with HR, Finance approval
3 month
break or
Transition
to FTE
Exceptions
only;
1-10%
(approved
by legal)
or
Jun 4, 2012 Company Confidential

5. Contingent Labor: Length of Service
Business Needs Risks Reporting
1-12 month contract 13-24 month contract
Type of Work - General Admin
- Non-IT
-IT (project length must be disclosed)
- Other functions: must partner with HR
for approval
Approval Thresholds
(what HR will used to determine if you
qualify for 13-24 month contract)
- None needed -Explanation of complex
training/onboarding (est 3-4 mos)
- Specialized skillset (cannot be easily
found)
- HR Generalist will grant approval
Exit: Transition Plan -9 mos: reminder email to worker/ mgr
-10 mos: worker highlighted to PMO, HR,
Leader, Manager via report
-18 mos: reminder email to worker/ mgr
-20 mos: worker highlighted to PMO, HR,
Leader, Manager via report
Termination - System will term at 12 mos - System will term at 24 mos
Request for change in length of
service
- up to 12 month extension given (1)
change of project scope; (2) exit strategy
defined ***need to define template***
- N/A
Reminder email to
worker and manager
Monthly
email to Leaders
PMO
manages

6. Worker Type Maximums Key Benefits
****
Other PeopleSoft
coding
Part Time*** Indefinite; up to 29 hours
per week or xx% of salary
or as defined by Brand
Employee Discount
401K*
ESPP
Healthcare/sick pay per
SF ordinance
Stock for Directors &above
Counts as headcount (0.5 – 0.75 FTE)
Has clear goals; participates in focal review
No severance eligibility
Eligible for prorated bonus, based on FTE
P/T
Temporary*** Clear start/end dates
For up to 9 months up to
40 hours per week
Employee Discount
401K*
Corp Holidays (exempt only)
Healthcare/sick pay per
SF ordinance
No headcount; not eligible for bonus
No severance eligibility
Use legal approved offer letter
Must establish & honor clear start/end dates
F/T
TEMP
Seasonal*** Up to 90 days (with 30 day
grace) up to 40 hours per
week
Employee Discount
401K*
SF ordinance applies after
90 days
No headcount; not eligible for bonus
No severance eligibility
Pplsft will auto convert to part-time at 90
days; Pplsoft auto-terms after 120 days of
inactivity
TEMP/SSNL
SSNL
Intern**:
Undergraduate
Up to 40 hrs/ week for up
to 24 weeks
Hourly pay
Employee Discount
401K*
No headcount
No severance eligibility
Not eligible for bonus
TEMP/SSNL
SSNL
Intern**:
MBA
Up to 40 hrs/ week for up
to 24 weeks
Salary pay
Employee Discount
Corp Holidays
401K*
No headcount
No severance eligibility
Not eligible for bonus
N/A
Contractor
(W-2)
Up to 12 months or
24 month contract
None None
* 401k eligibility: at least 1000 hours worked and age 21
** Interns must be approaching studies for their final year of school (i.e. entering Senior year or last year of MBA)
*** Recruiting owns the recruitment process (including offer letter, background check, etc)
****All categories do not include medical, dental, vision or life insurance other than the National Health Access Program
April 16, 2012
Company Confidential
Healthcare Reform
could impact this
category
Healthcare Reform
could impact this
category

7. Change Management Business Needs Risks Reporting
Corp IT GID IT Other
Enterprise
Overview
• All ELT members have 1:1 meetings
with
• Nina Callahan (GID IT)
• developing
“what if model”
• Heather Goldman
(photo studio)
• deep dive; open
questions
• Generalists
• Staffing
• Finance
Tenure
• Renee evaluating existing 20 ppl
• Step down schedule
• Approvals only for (1) knowledge
transfer plan and (2) exit plan
• Chris Demuth (HR)
and Lequisha Smith (IT)
• n/a
ChgMgmt
• Target: June • Target: June • Target: June

8. Open Issues
• Tenure Length:
– can this be evaluated by hours worked rather than just
length of service? (i.e. What happens for a contractor
working only 20 hours a week?)
– Does consistence of service play a role? (i.e. photo studio
has people work 3 weeks on; 3 weeks off, repeating the
pattern for 5-6 months… how does this play into tenure?)
• Reporting
– Can IQN provide reporting that shows total length or
service (in time and hours) by worker? (i.e. photostudio
has workers that rotate between brands and managers
don’t have visibility to entire scope of work)
Business Needs Risks Reporting

9. Sourcing: Vendor review
• Focus: Cleaning up house
• GID and IT: increasing Agile demand
• Needs assessment
Business Needs Risks Reporting
Scope: Conduct needs assessment to determine vendor alignment with
business needs
Timeline: Q1- Q2 FY12
Status: Strategic Sourcing to review vendors
IQN Agile Other Vendors
 Implementing
scorecard by Feb
•Conduct IQN
Information Sessions
– End of June
 GID/IT
 Strategic planning
for key vendors
(Nisum, Thoughtworks,
AvenueCode)
• Near shore
development center
 Tiered IT suppliers
•Review Non-IT
Suppliers
Added new Event
supplier
•Review Payroll
Supplier

10. Sourcing:
Annual Review of Descriptions & Rates
• Align with business needs and market rates
• Conduct annual review of job descriptions and pay rates
• Benchmarked rates within IQN supplier network
• Align job titles and rates with Gap Inc. pay scales
Business Needs Risks Reporting
Scope: Evaluate job descriptions and pay scales to align with market conditions
Timeline: Q2-FY 12
Status: In Process

11. Sourcing/Legal
Policy and Contract Revisions
• Research employment law?
• Revise policies
• Draft audit clause amendment
• Communicate to suppliers
• Change management
Business Needs Risks Reporting
Scope: Define position on acceptable visa and worker status. Amend contracts to
include audit clause: Q2-FY 12
Status: Exploration/Definition

12. Service Providers
Business Needs Risks Reporting
Approved service provider contracts are defined by project and not by
company:
• Application Services Group (VPR)
• ITP for Asia and Europe (Infosys)
• Stores Development Contract
• Infrastructure (IBM)
• IGP Project (Cap Gemini)
• Mainframe Re-hosting (Infosys)
Done!

13. Immediate Business Need:
Branding and Process Map
Business Needs Risks Reporting
People Process Timeline
Wendy, Heather and Gina
Vigil (CSSC)
Developed new layout of
website
Pending new Gapweb

14. 1099 Employees Business Needs Risks Reporting
Worker actively services
other clients and
spends/will spend less than
50% of his/her work time
servicing Gap Inc.
Worker is automatically
exempt from CW Program
(Appendix A)
Establish as vendor
through CSSC
Worker actively services
other clients and
spends/will spend more
than 50% but less than
100% of his/her work time
servicing Gap Inc.
Worker may be exempt
from CW Program
Contact Gap's Employment
Legal team to assist in
determining whether
worker is exempt from CW
Program
Worker spends all of
his/her work time servicing
Gap Inc.
Worker is not exempt
from CW Program
Worker must be processed
through IQN
CONTINGENT WORKER ADDITIONAL EXEMPTIONS
In addition to the automatic exemptions provided in Appendix A of the Gap Inc. Contingent Worker Policy, the following services may be
considered exempt under certain circumstances:
• Photographers, including editing and duplication
• Videographers, including editing and duplication
• Models/Fit Models

15. Contingent Labor: Length of Service
Business Needs Risks Reporting
1-12 month contract 13-24 month contract
Type of Work - General Admin
- Non-IT
-IT (project length must be disclosed)
- Other functions: must partner with HR
for approval
Approval Thresholds
(what HR will used to determine if you
qualify for 13-24 month contract)
- None needed -Explanation of complex
training/onboarding (est 3-4 mos)
- Specialized skillset (cannot be easily
found)
- HR Generalist will grant approval
Exit: Transition Plan -9 mos: reminder email to worker/ mgr
-10 mos: worker highlighted to PMO, HR,
Leader, Manager via report
-18 mos: reminder email to worker/ mgr
-20 mos: worker highlighted to PMO, HR,
Leader, Manager via report
Termination - System will term at 12 mos - System will term at 24 mos
Request for change in length of
service
- up to 12 month extension given (1)
change of project scope; (2) exit strategy
defined ***need to define template***
- N/A
Reminder email
Months 10/20
email to Leaders
Does
PMO
manage?

16. FAQ
• Can we manage assets by hour vs length of service?
• What happens if I have an onshore contract, transition to offshore… does
the move to offshore qualify for the 90 day break?
• What is someone moves from a staff aug assignment to managed services
and back to staff aug? Do we look at original start date or does managed
services count as their 90 day break?
Business Needs Risks Reporting

17. Prevention
• Leader Accountability
– Corp IT releases reports with ITLT leaders names
• Dashboard to ELT (Michelle and Eva)
– 6 month distribution
– Organizational Priority
• Extensions
– Approved only with exit plan (date and knowledge
transfer)
Business Needs Risks Reporting