No Cost Cutting for Costco vs Workers in Walmart Want Weasonable Wages
Did you know that Costco CEO and Co-Founder Jim Sinegal’s salary is only 350,000?
Although it is one of USA’s largest corporations, he refuses to live the lavish life of luxury. In Costco, their employees get treated extremely well, covering 94 percent of their health case and wages starting at 10 dollars an hour. Because of this the employees feel safe working at Costco, keeping turnovers extremely low.
This is a huge contrast from Wal-Mart’s business plan of cutting costs to the bare minimum to maximize revenue. Some people even went so far to create a website in petition for their acts.
Which approach is the best for maximizing costs? For Jim to maximize costs, he took money out of his own pocket so that employees do not have to suffer. Wal-Mart does the exact opposite, keeping the wealth while the employees get the butt-end. It all comes down to a matter of perception.
We cannot expect Wal-Mart’s culture to be top of the line as a result. It will lack the benefits of happy employees such as high turnover, absenteeism, and productivity. One thing’s for sure, I’d never want to work for Wal-Mart because of this.
