My kid loves the made-to-order birthday cakes he gets to order from Costco each year. My husband loves snacking his way through the store. And I love saving money.
But there’s another reason I am a loyal Costco customer, and it has to do with the with how it rewards its top dog and worker bees as compared to other companies.
There’s an interesting piece on CNN Money about the wages of three people doing similar jobs for three different companies: Wendy’s, Wal-Mart and Costco.
After reading it, I couldn’t be happier about my Costco membership.
While I often wonder whether Costco pumps oxygen into its stores (like some say casinos do), I never, ever leave there feeling cheated. Lighter in the pocketbook, for sure, but never, ever like I didn’t get a good deal on my huge pack of toilet paper or 100-pound bag of bird seed.
Besides selling good stuff in large quantities at a great price, Costco pays its workers well — and provides benefits.
It’s something other companies could do if they wanted, but it might mean less for the dogs at the top.
If you don’t click through to the CNN piece (and you really should), in a nutshell, the Wendy’s worker featured makes $7.35 an hour with no benefits; the WalMart worker featured makes $9.40 an hour, and qualifyies for benefits, but can’t afford them; and the Costco worker featured makes $22.40 an hour with health care and a 401(k).
Let’s look a quick look at the correlation between the worker pay in the CNN money piece and CEO salary:
Wendy’s – $7.35/hour versus a CEO salary of nearly $5 MILLION.
WalMart – $9.40/hour versus CEO salary of over $20 MILLION.
Costco – $22.40/hour versus CEO salary of $600,000.
Guess where I’ll continue to be a loyal shopper.