Costco Pay and Benefit
PAY AND BENEFITS
There are five major components of job satisfaction, one being monetary benefits (Ghillyer 2010). According to Ghillyer (2012) an employee’s behavior towards their pay may affect their work performance. The issue that arises with employee motivation is that management is unable to satisfy all (Ghillyer 2010). This becomes an even larger problem when employees being joining unions, resigning and being frequently absent (Ghillyer 2010).
The according to Weissmann (2012), employees at Costco’s main competitor, Wal-Mart, are paid notoriously low and below the industry average. Consequently, many of them are part of a union and hold strikes known as “Black Friday Strike”, to fight against their job dissatisfaction. Furthermore, Weissmann (2012) goes on to state that Costco is paying their employees “commendably” better. As demonstrated in figure one, the average wage for a Cost Co cashier, after 5 years of employment is approximately 64% higher than that of an employee at the Wal-Mart Empire (McArdle 2012).
Moreover the commentary of Business Week Magazine quotes "At Costco, it 's better to be an employee or a customer than a shareholder," says Deutsche Bank”. By showing generosity to employees, they are able to retain them (Commentary:The Costco Way 2004). This is unlike at Wal-Mart where are higher focus is made on shareholder value (Weissmann 2012). Additionally, no Costco employees are part of a union in Washington State (Frey 2004). This only goes to show that employees at Costco are generally satisfied and as such they have no need to join a union, as they have no criticisms on employee treatment. Despite remarks that Costco has more employee value than shareholder value, figure two demonstrates otherwise. Where Costco’s market price had risen constantly over the past 5 years, Wal-mart’s market price has been relatively constant (Yahoo Finance 2013).
One particular employee was offer a biannual bonus and had been given time off paid
There are five major components of job satisfaction, one being monetary benefits (Ghillyer 2010). According to Ghillyer (2012) an employee’s behavior towards their pay may affect their work performance. The issue that arises with employee motivation is that management is unable to satisfy all (Ghillyer 2010). This becomes an even larger problem when employees being joining unions, resigning and being frequently absent (Ghillyer 2010).
The according to Weissmann (2012), employees at Costco’s main competitor, Wal-Mart, are paid notoriously low and below the industry average. Consequently, many of them are part of a union and hold strikes known as “Black Friday Strike”, to fight against their job dissatisfaction. Furthermore, Weissmann (2012) goes on to state that Costco is paying their employees “commendably” better. As demonstrated in figure one, the average wage for a Cost Co cashier, after 5 years of employment is approximately 64% higher than that of an employee at the Wal-Mart Empire (McArdle 2012).
Moreover the commentary of Business Week Magazine quotes "At Costco, it 's better to be an employee or a customer than a shareholder," says Deutsche Bank”. By showing generosity to employees, they are able to retain them (Commentary:The Costco Way 2004). This is unlike at Wal-Mart where are higher focus is made on shareholder value (Weissmann 2012). Additionally, no Costco employees are part of a union in Washington State (Frey 2004). This only goes to show that employees at Costco are generally satisfied and as such they have no need to join a union, as they have no criticisms on employee treatment. Despite remarks that Costco has more employee value than shareholder value, figure two demonstrates otherwise. Where Costco’s market price had risen constantly over the past 5 years, Wal-mart’s market price has been relatively constant (Yahoo Finance 2013).
One particular employee was offer a biannual bonus and had been given time off paid