A recent article over at CNNMoney compares the average wages of Costco employees to workers at Wendy’s and Wal-Mart. They showed that typical employees holding similar positions would earn very different rates from one store to the other.
The Costco employee earns $22.80 an hour, while the Wal-Mart employee earns $9.40 and the Wendy’s worker just $7.35.
Since the Costco worker earns more than twice what the other two earn, he can also afford health benefits and even 401(k) contributions. Medical insurance and retirement savings are important benefits that give workers piece of mind and add to employee satisfaction.
While most companies focus solely on the bottom line and keep labor costs as low as possible, Costco chooses to pay their employees a fair wage.
“That’s the reason why I’ve been here for so long,” says Costco employee Cesar Martinez. “The company gives you a decent wage and treats you with respect and takes care of you. That’s why we all give 100%.”
Happy employees are productive employees so it’s no surprise that Costco’s policy of treating workers with respect has paid off. Sales have grown an average of 13 percent annually since 2009, and profits have risen 15 percent. The stock (COST) has more than doubled since 2009.
Costco’s policies are in stark contrast to other companies like McDonald’s who recently made a tone-deaf effort to help their employees create a budget that would let them live on their meager earnings. Their utterly absurd sample budget caused quite an uproar when it was noticed it included completely unrealistic monthly expenses and left off “luxuries” such as food.
Perhaps if more companies paid their employees as well as Costco the middle class wouldn’t be suffering so much.