Netflix, Inc. (NFLX), Best Buy Co., Inc. (BBY), The Gap Inc. (GPS): An Ode to the Greatest Employee Perk of All

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Here’s another head-scratcher… The Gap Inc. (NYSE:GPS) ! That’s right… the previously struggling clothing retailer comprised of its namesake stores, Banana Republic and Old Navy, offers its employees 20 to 35 days per year of vacation and leave time, another seven days with holiday pay, and has a leave-of-absence program, if that’s not enough. In essence, it’s like Best Buy Co., Inc. (NYSE:BBY)’s program in that you tell your supervisor that you need time off and, ta-da, you get it! Given how notoriously low most retailers rank on the recommendation front from employees, The Gap Inc. (NYSE:GPS)’s 67% recommendation on Glassdoor serves as a reminder of just how unique its perks and results have been lately.

Back in the financial-services sector we have Morningstar, Inc. (NASDAQ:MORN), which hasn’t counted workers’ vacation days since it was founded 29 years ago. Like Netflix, Inc. (NASDAQ:NFLX) and The Motley Fool, Morningstar believes in allowing workers to prioritize their own hours and work flow as they see fit to maximize their work-life balance. Not surprisingly, this method contributes to low turnover, high talent retention, and overall satisfied employees. I’d also retort that it’s another reason why Morningstar, Inc. (NASDAQ:MORN) is trading near an all-time high.

The perfect perk can’t cure all

Unfortunately, the perfect perk can’t fix everything. Social media gaming giant Zynga Inc (NASDAQ:ZNGA) also offers an unlimited vacation policy to its employees, but it hasn’t seen the same expansionary share price as many of the aforementioned companies. As a developer of social media games that are played by few paying and fickle customers, cranking out winners each and every time isn’t likely. As a developer of online gaming platforms, Zynga Inc (NASDAQ:ZNGA) may still have life — but this is more of a case of finger-crossing and hoping you’re right than actual investing.

Ultimately, no matter how fantastic the perk, it comes down to whether or not the business offers a long-term competitive advantage over other businesses within the sector. In the case of Zynga, that advantage isn’t readily apparent. For content-streamer Netflix, Inc. (NASDAQ:NFLX), or Best Buy Co., Inc. (NYSE:BBY), which offers the largest in-store electronics depot within the U.S., there are notable advantages and fluidity to each business that will allow these companies to remain on the cutting edge of their sectors, all while keeping their employees happy with the world’s greatest perk.

Here’s two thumbs up these companies (and my company) for employing the most transformative perk on Earth, allowing employees to prioritize their own workflow and, in the process, become more responsible than they would ever have been had constraining vacation rules been imposed.

The article An Ode to the Greatest Employee Perk of All originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Apple, Google, and Netflix. It also recommends Morningstar. 

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