Costco Gets it, Wal-Mart Doesn’t

Wal-Mart has long been known as a very successful retailer.  It has also long been known as an employer that pays at the bottom of the barrel when it comes to employee wages and benefits.  As a result, the rates of employee theft and turnover are high at Wal-Mart–70% of the employees hired leave within a year.  Costco, on the other hand, pays its employees 42% more than Wal-Mart.  It also pays health care and other benefits to its employees that make other retailers look like Scrooge.  The payoff for doing this is that Costco has very low rates of employee theft and turnover.  Jim Sinegal, CEO of Costco says, “This is not being altruistic.  This is simply good business.”  Mr. Sinegal takes very good care of his employees and they take very good care of him by providing excellent customer service.  This sounds like a case of Wal-Mart being penny wise and pound foolish. – Ross / RossReck.com

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