Connor Corrigan

Founding Started as “Price Club” in 1976

San Diego, California

“PriceCost” merger created Costco in 1983

Requires a membership to join

Founded by James Sinegal and Jeffrey Brotman

Founding 705 Warehouses across numerous countries

US = 493

Canada = 90

Mexico = 36

UK = 27

Japan = 25

South Korea = 12

Taiwan = 12

Australia = 8

Spain = 2

Founding Wanted to compete with Wal-Mart prices

While keeping quality products

One of the top 3 Retailers for US Sales

Low prices are compensated for by supplying largely “Bulk” items.

Keeping overhead costs low, by selling in high quantity

Founding Provides

Prescriptions

Food

Furniture

Etc.

Average Household income of club members = $165,000

Low prices can also be maintained through membership rates

More About Costco NASDAQ: COST

First company to grow from $0 - $3 Billion within six years of its founding.

Estimated annual anual sales of nearly $100 Billion

Investment in Employees Emotional stability and a feeling of security are focal

points of Costco’s approach towards employees.

Opportunities for advancement within the company and high wages provide an environment of dedicated and well cared for employees.

Investment in Employees Average hourly income for employees

20.89/hour

Health Benefits

Dental

Optical

Etc.

In Store Discounts for Employees

Investment in Employees Even employees who work at Costco- who make the

type of wages that we pay- are being hit at the gas pump. We’re working very hard to schedule people from the same part of town so they can drive together. We’re encouraging van pools. We’re even testing 10-hour days, something we’ve never done in the past. If we can schedule some employees for four 10-hour days, that’s one day they don’t have to drive to work. They’ve got a 20% savings in their gas right there.”

James Sinegal

Investment in Employees Beyond savings and competitive wages, Costco further

invests in their employees personal and financial well being.

Opportunities for advancement and an active Human Resources Dept. see to any employee complaints that may arise.

Employees are offered equity in the company, further allowing for financial gain and a feeling of security

Stress, Burnout, and Social Support As mentioned in the quote from Sigel, Costco plans

most of its operations around convenience and benefit to the employees. Working fewer, but longer days saves both gas and days

that someone is working.

Employees are encouraged to become friends and mingle socially outside of work to build a feeling of belonging and team support.

By investing in its employees, Costco saves an incredible amount in employee turnover costs, such as training, recruiting, etc.

Stressors Costco’s team building makes sure that no employee

feels stranded in their work.

The ability to ask for help from other coworkers, or across departments, is encouraged in order to ease the individual workload.

Roles are clearly defined for employees, but all are encouraged to assist their fellow employees.

Stressors By ensuring both work related, and emotional support

through management and fellow staff, Costco keeps from having overwhelmed employees.

The positive reinforcement from management also improves the work environment for employees.

Burnout Although employees are assigned to specific

departments, the stressors of repetitive tasks are taken care of through the employee based method the company uses.

Personable management, and support from teammates in all departments creates an environment that encourages all members of the staff to cooperate and build one another up.

Burnout Prevention Companies that are known for treating their workers

right have been a growing market in the US, with current stigma towards companies such as Wal-Mart

By ensuring happy employees, Costco can provide a more pleasant experience for shoppers, as well as having a dedicated and motivated staff.

Empathy With CEOs who are personally invested in the well

being of their employees, Costco provides an environment for all employees to thrive, regardless of their role.

Managers and Human Resources staff are trained to approach each employee situation on an individual basis, to show the investment the company has in the well being of its employees.

Outcome Costco’s approach to their employees maximizes both

store profits, as well as financial and emotional profit for its employees.

Understanding that the employees are what give the final impression of a business to the customer, Costco puts a high premium on helping their staff in all aspects of work, in and out of the store.

Works Cited Book

http://i-sight.com/resources/employee-relations-best-practices-costco/

https://www.eremedia.com/tlnt/weekly-wrap-what-costco-can-teach-about-treating-employees-right/