Analysis of Employee Compensation and Benefit Packages at Zara

This essay explores the compensation and benefit packages offered by Zara, a leading global fashion company, to its employees. It highlights the importance of these packages in employee retention and engagement within the competitive retail industry. The essay discusses various benefits, including workplace safety, healthcare expense coverage, monetary enhancements, bonuses, retirement savings, and phased retirement options. It evaluates the advantages of these packages in motivating employees and fostering organizational involvement, while also acknowledging potential drawbacks such as misuse of benefits. The analysis emphasizes the need for companies to implement effective compensation and benefit strategies to ensure employee satisfaction and business development.

Running head: COMPENSATION AND BENEFIT
COMPENSATION AND BENEFIT
Name of the Student
Name of the University
Author Note

1COMPENSATION AND BENEFIT
Section 1: Narrative
The genre of the Organization
Zara is one of the biggest fashion companies in the world and the company has largest
distribution channel also and unique business model and design and production is the trademark
of the company. This 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 (Zara.com,
2018). The business is expanding in different countries and stretches the business horizon. As
one of the prime companies in the retail industry, employee retention and involvement is the key
matter that needs to be implemented in the company for the development of business and make
them in the good position in the competitive business scenario.
Employee compensation and benefit packages
Some of the benefit packages employees want from the company and company have to
implement this for the retention of employees. This effective benefit helps employees to curtail
the high-risk cover and also assist the financial burden to sort it out. Employees have a different
kind of pressure and they have they have to ensure the situation they are in and want a security at
their job. Some of the important packages the need to implement in the retail organization is:
 The basic need of an employee is the workplace safety and security and the situation
employees will work in need to be safe so the employees can concentrate in the
workplace.
 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 (Reilly, O’Hagan & Dalton, 2016).

2COMPENSATION AND BENEFIT
 Monetary enhancement is the key process to get employee engagement with the
organization and annual salary increment is the key process provides enough benefit to
employees.
 The process of extra income for extra shifty or the hourly income for employees will
motivate employees to get involved with the organization.
 Bonus, incentives and salary hikes are another compensation that helps employees to
channelize the work in the right way. In case of a retail organization, employees have to
work for long so extra amount of money provides motivation for them (Terera &
Ngirande, 2014).
 Retirement savings is one of the important aspects of the workplace and a whole life
investment need some return and that is the process of retirement benefit. In the retail
organization, this investment reverts will be highly acceptable for the employee and they
want a good amount of monetary support from the company.
 Phrase retirement implements in the critical condition that will strengthen policies and
legislation related issues in the organization. The approaches of employees will change
and they depend on the organization procedure for the further declaration.
Evaluation of packages
The compensation and benefits packages provide extra motivation to the employee and
help them to get involved with the organization. The hurdle of salary, staffing, financial
advancement and increase number of acclimation is the development of the program (Xavier,
2014). The organizations help this process and also expect that companies will follow the same
for the involvement of employees. This is the beneficial end of the packages but some of the

3COMPENSATION AND BENEFIT
employees misused it, to stay in the good position and making the worst use of it is the drawback
of this package.

4COMPENSATION AND BENEFIT
References
Reilly, K., O’Hagan, A. M., & Dalton, G. (2016). Developing benefit schemes and financial
compensation measures for fishermen impacted by marine renewable energy
projects. Energy Policy, 97, 161-170.
Terera, S. R., & Ngirande, H. (2014). The impact of rewards on job satisfaction and employee
retention. Mediterranean Journal of Social Sciences, 5(1), 481.
Xavier, B. (2014). Shaping the future research agenda for compensation and benefits
management: Some thoughts based on a stakeholder inquiry. Human resource
management review, 24(1), 31-40.
Zara.com (2018) ZARA retrieved from: https://www.zara.com/us/en/z-company-l1391.html?
v1=11112 [Accessed on 6th June, 2018]