Strategic Compensation & Benefits: Zara, DKNY, Johnston & Murphy

This presentation provides an overview of compensation and benefit strategies, with specific examples from Zara, DKNY, and Johnston & Murphy. It covers topics such as government regulations, employee motivation using the Keller model, and the impact of exempt and nonexempt status on overtime pay. The presentation also highlights the importance of compensation and benefit packages in enhancing employee performance and influencing HRM processes, including training and development. It emphasizes the need for fair labor standards, competitive compensation, and strategic changes to improve employee satisfaction and organizational growth. References to relevant articles and company websites support the analysis.

COMPENSATION AND
BENEFIT
Section 2:
Presentation

Company overview
• Zara is a Spanish retail company that was founded in 1975 and now become
the world largest apparel retailer and all the big brand products are under
the same belt.
• The business is expanding in different countries and stretches the business
horizon.
• The business has reached in Greece, Japan, Singapore, India, Costa Rica,
Philippines, Australia, South Africa, China, Morocco and Estonia.

Overview of the employee compensation
• Government bares approximately 70% of the healthcare expenses where
employees are in the workplace and the emergency treatment of fast aid
sections need to be in office in different departments.
• The extra money will be allocated for the extra work and that motivated
employees to work in a proper way.
• The safe workplace and shift time need to feasible enough to consolidate
the process and employees will find some future over the company.

Compensation and Benefits

Contd.
• Bonus, incentives and salary hikes are another compensation that helps
employees to channelize the work in the right way.
• Retirement savings is one of the key aspects that employee will desire to
invest their whole life for the company and those companies have this policy
more employee engagement and satisfies employee accumulation is being
noticed in those sections.

Evaluation
• The organizations help this process and also expect that companies
will follow the same for the involvement of employees.
• The motivation will come through the process so as the
performance improvement and that is the reason this is one of the
crucial aspects of organization upgradation with employees.

Exempt and nonexempt impact on overtime
• There is a clear rule for all employees to have an extra amount of
money that they will get if they work more than 40 hours in a
week. However, there is a provision of ‘exempt' and ‘Nonexempt'
process in case of overtime.
• There is a different set of rules for lower-paid exempt employees as
an employee at this process will not get less than $450 per week
and they need to include in the company as per the salary basis,
not in the contract basis job (Collie et al., 2016).

Enhancement of performance through benefits
• The performance will evaluate in the organization if proper
compensation and benefit implement in the organization. In case
of retail industries, employees have to work for long and that is the
reason extra motivation is needed from the organization.
• 45% of employee are concerning with their financial condition, so it
seems to be clear that enough amount is not acquired by the
employees (Caza, McCarter & Northcraft, 2015).
• The organization needs to make some performance appraisal
system and those employees will perform well in the organization
will get the appraisal, that means positional development.

Contd.
• The Fair Labour Standard Act delivers the white collar position or
paid salary at the right time help the entire process.
• In case of Nonexempt employees, they are working on the hourly
basis so the extra money will be delivered if they working for the
extra hours. They also demand the minimum salary for extra hours.

Job motivation
• Job motivation will come in form of compensation and benefit as
employees will find organization takes care of health and safety
that encourage employees to work in an efficient way.
• Keller motivational model is the key model that defines the
employees’ satisfaction, attention, confidence, and relevance in
the organization. All these sections help in the formulation of
motivation by the effective variability of the process.
• The extra bit of confidence will find in that case and expectations
from the organization will be there so as the personal growth is
also related with that.

Keller motivational model

Government rules and regulations
• Under the United States Department of Labour, takes care the entire
situation and that is the key process to save labors by the immense
pressure of the organization.
• In case of inflation and prices, the separate policy has been set for the
organization.
• In case of employees, employment hours and earning depend on that
process.
• Labour turnover and salary service process is formulated by the section.
• Employment and wages occupational service maintenance is designed
and evaluated by the survey process.