Compensation and Benefits: Analysis of Disney and Woolworths

This report examines compensation and benefits issues, focusing on case studies of Disney and Woolworths. The analysis highlights the challenges of managing pay structures, employee rights, and corporate responsibilities. Disney's issues involve potential violations of human rights through child labor and contract labor practices, while Woolworths faces underpayment concerns. The report suggests solutions such as setting fixed wages, adhering to labor laws, and creating healthy working environments. It also recommends implementing incentive and benefit plans to attract and retain employees. The study references relevant literature and provides a comprehensive overview of the complexities involved in compensation management.

RUNNING HEAD: COMPENSATION AND BENEFITS
Compensation Issues
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Author’s Note

RUNNING HEAD: COMPENSATION AND BENEFITS
In recent times, the two companies that were highlighted regarding the pay related issues are the
Disney and the Woolworths Company. In 2014, Disney was accused to have been disobeying the
basic human rights by enforcing child labour and contract labours to work in unhealthy
conditions and with a very low wage. Disney generally made used of contract labours and was
accused of changing pay structures without any prior notices. The company of Woolworths was
made aware of the issue of underpayment on 20th February 2020. A young salaried employee,
who stated that though after offering a compensation of 70,000 dollars per years, there had been
constant discriminations regarding the pays, accused the company.
The two issues of compensation mismanagement, though sounded same, differ in their
basic approaches. Disney, being a globally reputed company needs to analyse their ways of
sustainability and corporate social responsibilities. Since they are working globally with the
contract labours, perhaps they were of the notions that there would be no dearth of workers,
particularly in the developing areas and thus, they did not payed interest on having a fixed salary
(Gupta & Shaw, 2014). The Woolworths on other hand, is a comparatively new company. The
salaries were less in comparison of what the employees are expected to do. This makes the
employees think that they are being ripped off. Disney can fix the issue by setting a fixed wage
adhering to the pay related laws in the countries they are operating in. In addition to these, the
company also needs to create corporate responsibilities by producing healthy working
environment. Woolworths can attract the employees and retain them by making use of incentive
and benefit plans (Adeoye, 2014). The grudge of low salary can be restricted to certain extent if
they set up incentive structures and other non monetary benefits like paid holidays, sick leaves,
healthcare plans etc.

RUNNING HEAD: COMPENSATION AND BENEFITS
Reference List:
Adeoye, A. O. (2014). The influence of compensation management on employee’s leadership
role in insurance sector: Nigeria Experience. Mediterranean Journal of Social Sciences,
5(27 P1), 342.
Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research.
Human resource management review, 24(1), 1-4.
Bibliography:
https://www.theguardian.com/commentisfree/2018/jun/07/disneyland-workers-living-wage-
disney-inequality
https://www.smh.com.au/business/companies/woolworths-pay-scandal-how-the-retail-giant-
played-hardball-20191101-p536lk.html