There’s a real business advantage to treating employees well, says Jim Sinegal, CEO of Costco Corporation, an international membership warehouse club. Boasting the lowest employee turnover rate in retailing, Costco pays 40 percent more than its closest rival, Sam’s Club, and provides health insurance to more than 90 percent of its employees.
“Wall Street is in the business of making money between now and next Tuesday,” Sinegal says. “We’re in the business of building an organization, an institution that we hope will be here 50 years from now. And paying good wages and keeping your people working with you is very good business.”
And the advantages don’t stop at profit margins and good wages.
In an open letter to Sinegal and president Craig Jelinek, Chris Horst of HOPE International shares a beautiful story about how Costco gave his brother a career, a community, and much, much more:
For his entire life, Matthew has been classified and known by his “special needs”. Since the day he began at Costco, however, his coworkers and customers have valued him because of his unique strengths. There are many companies which “succeed” at the expense of their workers. I am a firsthand witness to a counterintuitive company: Costco succeeds through the flourishing of its employees.
Matthew worked for years in the Costco parking lot (bearing the wind, rain, cold and snow), taking pride when it was free of carts. And, true to the rumors (that Costco promotes from within), he eventually was given the opportunity to work in the warehouse as a cashier’s assistant, supporting customers as they check-out. He absolutely loves his job…and his customers absolutely love him…
…Costco has become much, much more than an employer to Matthew. Thank you for giving him a chance. I have always deeply believed that Matthew does not need any handouts — he just needs opportunities to apply his incredibly unique gifts and abilities. The purpose and care with which you approach business has literally changed the course of my brother’s life and has been an unspeakable blessing to him and to our family.
Read the full letter here. I also recommend reading the comments, wherein Matthew’s co-workers offer many anecdotes and amens.
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