The mindset of paying out competitive wages and offering good benefits in order to attract great employees is simple but brilliant, an admirable approach that I genuinely wish more companies would adopt. I tip my cap to them for upholding such values.
New York, NY (PRWEB) June 19, 2013
FinanceSpectrum.com financial advice website today released its praise of Costco after reading a recent article highlighting the warehouse giant’s employee benefits, competitive wages, and incredibly low turnover rate. FinanceSpectrum.com recommended Costco to its budget-conscious readers who are looking to both save money on groceries each month and are looking to support a good organization.
Eleanor Bloxham wrote a CNN Money article, published June 11th 2013, reporting on the way that Costco rewards its loyal employees as well as the newbie’s, and in the long run actually saves taxpayers money. Bloxham reported that Costco’s starting hourly wage is $11.50-$12.00, and that employees receive pay increases after 800 hours of work (about 5 months.) Moreover, full-time and part-time hourly workers alike start receiving bonus checks of roughly $5,000 per year after they’ve been employed with Costco for five years.
In addition, Costco’s benefits package includes vision, dental, health, and a 401(k) program for both full and part-time employees. Bloxham reported that 90% of employees are eligible and of those, 98% are enrolled. Pat Callans, Costco’s vice president of human resources and risk management, is quoted within the article as saying, “It’s the philosophy that founders [Sol Price and Jim Sinegal] brought that if you pay competitive wages and great benefits, you’ll attract great employees.”
FinanceSpectrum.com, already a fan of shopping at the warehouse for its prices, raved about Costco’s employee benefits and applauded the company on its retention. FinanceSpectrum.com is quoted as saying, “It’s amazing that Costco guarantees such great wages and benefits for its employees. Well, I should take that back, since nothing in life is guaranteed—with the exception perhaps of guaranteed life insurance and the certainty that if you’re debating bringing an umbrella on a cloudy day, and don’t, it will rain—but at least when you’re working for a company with the philosophy that Costco has, you know you’re in a pretty good place. The mindset of paying out competitive wages and offering good benefits in order to attract great employees is simple but brilliant, an admirable approach that I genuinely wish more companies would adopt. I tip my cap to them for upholding such values.”
The above-mentioned article reports that due to their great employee packages, Costco receives multitudes of applications and can be selective when hiring. Bloxham reports that Costco’s turnover rate is a mere 10% for hourly workers and 6% for employees who’ve been working there for over a year. This is minimal compared to the overall turnover rates: 67% for part-time employees and 24% for full. Bloxham reports that as a result, Costco does not get hit with the high turnover costs that many other companies do.
FinanceSpectrum.com recommended shopping at Costco to consumers who currently don’t but have hefty grocery bills they are looking to slash. FinanceSpectrum.com is quoted as saying, “As a financial advice column, we are constantly offering tips and guidance to our readers about how to stick to a budget in order to save money. Shopping at a membership warehouse like Costco is a wonderful way to reign in spending but now we’ve learned it’s also a great company to support. By purchasing items in bulk, you not only save on packaging but on your own personal time and on gas money as well, through making less trips. And you’ll find that often you’ll pay less money when buying in bulk. There are many Costco-type stores available, but we happen to like Costco for its phenomenal refund policy—100% satisfaction guaranteed, or they’ll return your items for a full refund. And the same guarantee goes for your membership. And in shopping at Costco, you’re supporting their culture of treating their employees so well, so really it’s a win-win for everybody.”
FinanceSpectrum.com is an online finance advice magazine for middle-aged American consumers offering advice and tips on everything from credit, to money management, to budgeting, to investing, to the stock market. FinanceSpectrum.com prides itself in covering a broad yet relevant range of financial topics, with the goal of assisting Americans in making smart financial choices that will greatly benefit their well being and financial state.