Employee Benefits Of Costco And Sam's Club

Benefits for employees are key to the worker’s future or retirement. Benefits are also another reason why many people choose to work at that specific place of profession. Employees with families have to look for the benefits to help with their children’s future and health. An excellent example of a workplace with employee benefits is Costco. Costco employee’s starting pay is $11.50 an hour. While it’s competitor, Sam’s Club, starts paying employees at minimum wage. Employee benefits are not the only motive that make warehouse companies differ from each other. Companies cannot survive with bad customer service and horrible employee treatment. That is another reason that companies are more successful than their competitors. Another reason warehouse companies differ from each other is their product prices and quality. Costco and Sam’s Club differ from each other with their companies’ employee benefits, product prices, customer service, and employee treatment.

Costco gives their employees health care, dental care, a pharmacy program, care network and much more. Sam’s Club also provides their workers with similar benefits; however, they do not provide as much benefits as Costco does. “The workers at Costco only pay about 12 percent of their premiums out-of-pocket, while the Sam’s Club workers pay over 40 percent.” (Slate) Costco employees are also paid better and are loyal to their work place. Like mentioned in the introduction, workers start their pay at $11.50 an hour and then makes $21 an hour after four and a half years. On the other hand, a Sam’s Club employee starts at $10 an hour and makes $12.50 after four and a half year. The turn-over rate at Costco is only at 6 percent. The turn-over rate at Sam’s Club is at a whopping 50 percent. The employee benefits at Costco are better than Sam’s