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Costco
Acquired
Taking Care of Employees is Better for Bottom Line
Taking care of employees through higher wages, benefits, and opportunities for growth leads to numerous benefits for the company's bottom line. Costco, for example, pays an average hourly wage of $26 compared to Walmart's $19.50. This results in lower employee turnover, with Costco experiencing just a 7% attrition rate compared to the typical 20% in the retail industry. The company also saves on costs associated with onboarding and training new employees. Additionally, employee loyalty leads to reduced merchandise shrinkage, with Costco reporting only 0.15% of sales as unaccounted for merchandise. The company's strong bias towards internal promotions further reinforces employee loyalty and ensures a senior management team with extensive tenure. These factors contribute to Costco's success and demonstrate the powerful link between taking care of employees and the company's bottom line.
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