Costco 24% Wal-Mart 50%. Walmart's CEO earns as much as 796 average employees, according to CNN Money, compared to Costco's CEO making 48 times more than the company's median wage. Because comparing Costco to Walmart is apples to oranges, I’m going to compare Costco to Sam’s Club, wholly owned by Walmart. Walmart has over a million more employees in the U.S. than Costco. The cost of increasing the average wage to match Costco's and providing full-time hours to whoever wants them and providing benefits is way too economically risky for the company. these benefits are described in the applicable chapters of this 2020 Associate Benefits Book. Costco Wholesale employees rated their Career Opportunities 0.4 higher than Walmart employees rated theirs. Walmart is much more generous for some positions, offering its assistant store managers $2,948 as … Costco. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job that’s right for you. Walmart is taking steps to keep customers loyal including in-store pick-up options, curbside delivery, and improved in-store customer experience. There’s good people to work with. News to share with your dentist: Listerine mouthwash costs 11.8 cents per ounce at Costco, while at Walmart it costs 14.8 cents per ounce. Glassdoor will not work properly unless browser cookie support is enabled. The reason Costco can cap its margins to a mere 10% is that it makes money every day by selling its memberships. Instead of having a race to the bottom with Costco over lower prices and lower margins, Walmart is trying to woo back its customers to achieve the same level of customer loyalty Costco enjoys. Costco’s health plan offers a broader range of care than Wal-Mart’s does, and part-time Costco workers qualify for coverage in six months, compared with two years for Wal-Mart part-timers. You are automatically enrolled for certain benefits under the Plan on your date of hire or a later date. Perk and Benefits Score at Costco vs Walmart. While employees in many fields are worried about generally stagnant job growth and spiraling health-care costs, already-meager retail wages also are threatened by retail-pricing pressure, partly fueled by Wal-Mart… That is a negligible price difference, so we’re calling a tie for this product. Costco has a strong customer following and loyal employees, and the retailer makes money without even selling a single product. New members return because they have to justify the cost of their pricey Costco card, but those who renew their memberships at an amazing rate of 91% do so simply because Costco makes good on its promise. By The offers that appear in this table are from partnerships from which Investopedia receives compensation. Costco's average hourly wage of $15.97 is 38% higher than Wal-Mart's Sam's Club pays its workers. Costco has always been known as a great place to work, especially for part-time employees. Costco tends to pay around 40% more and provides more comprehensive health and retirement benefits than Walmart and Target, saving large amounts in employee turnover costs. Because comparing Costco to Walmart is apples to oranges, I’m going to compare Costco to Sam’s Club, wholly owned by Walmart. Unlike Costco, Walmart has a huge network of stores that must constantly be stocked. Electronic retailing (e-tailing) is the sale of goods and services over the Internet, which can include B2B or B2C sales. Walmart, though, has a huge network of stores that must constantly receive deliveries. With shopping at Walmart becoming more convenient and pleasant, customers ought to prefer it to the alternative, right? The biggest disparity between Walmart and Target are in employee bonuses. A new Costco employee, at $11 an hour, doesn't start out much better, but after four and a half years she makes $19.50 an hour. Mayonnaise. You don’t have some one constantly looking over your shoulder.Management is good. The warehouse retailer pays workers an average of $20.89 an hour, compared with Wal-Mart's average hourly wage of $11.83. Costco, on the other hand, isn’t getting bogged down with providing copy-cat convenience options for its customers because Costco’s management promises low prices for its members. But Walmart, or its Costco-like warehouse Sam’s Club for that matter, will never be Costco. Winner: Walmart. Worker pay, benefits and job quality have been hot topics in the retail industry. Copyright © 2008–2021, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. See how working at Walmart vs. Costco Wholesale compares on a variety of workplace factors. On the benefits side, 82% of Costco employees have health-insurance coverage, compared with less than half at Wal-Mart. The rankings from the employer-review website were based on an anonymous online survey that asked employees to rate how satisfied they were with their pay and benefits on a scale of one … Stories of higher wages resulting in fewer hours and a lack of employee benefits for not-quite-full-time employees are commonplace on the internet. The company resists layoffs, invests in training its employees, and grants them substantial autonomy to solve problems. Winner: Costco (by a fraction of a cent) 11. Brad Stone writes: Despite the sagging economy and challenges to the industry, Costco pays its hourly workers an average of $20.89 an hour, not including overtime (vs. the minimum wage of $7.25 an hour). Not that Costco is a … Costly employee turnover is minimal and staff are uber-productive and promoted from within. You are automatically enrolled for certain benefits under the Plan on your date of hire or a later date. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. The warehouse retailer pays workers an average of $20.89 an hour, compared with Wal-Mart's average hourly wage of $11.83. The company resists layoffs, invests in training its employees, and grants them substantial autonomy to solve problems. Costco offers their 64-ounce jar of mayonnaise for 10.9 cents per ounce while Walmart’s price is 11.2 cents. What retailer wouldn’t want to be Costco (COST)? Walmart has over a million more employees in the U.S. than Costco. The Plan is sponsored by Walmart Inc. (the company). Bring on the BLTs. Learn more, read reviews and see open jobs. The above table shows that Walmart is inefficient compared to Costco in using its retail space and could benefit from a higher volume of online sales. By compensating employees generously to motivate and retain good workers, one-fifth of whom are unionized, Costco gets lower turnover and higher productivity [than Walmart] duh! Click and Mortar: Retailers That Thrive Both Online and Offline, regain customers it’s lost to other general merchandise retailers. Both Walmart and Costco offer reading glasses, computer glasses, prescription lenses, and contact lenses for sale. Refer But I thought it was time to take a deep dive into exactly what employee benefits and discounts Costco offers their workers. A strategic buyer is a company that acquires another company in the same industry to capture synergies. Thousands of supply trucks crisscross the nation, racking up millions of miles every year. The company is known to pay $25 per hour for certain positions within its retail locations. During the same period, discount retailer Wal-Mart's sales grew an average of 4.5% each year, profits rose 7%, and its stock price increased 70%. This percentage increases with employee… Wal-Mart vs. Costco III, Why My Critics Are Wrong Companies are complicated. You canâ t just change the bits you donâ t like and have the rest tick along exactly as before. The minimum wage is a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job. Outside a lot. By compensating employees generously to motivate and retain good workers, one-fifth of whom are unionized, Costco gets lower turnover and higher productivity [than Walmart] duh! According to a report from CNBC, the retailer pays its full-time field associates $14.26 per hour. Compare Walmart vs Costco Wholesale BETA See how working at Walmart vs. Costco Wholesale compares on a variety of workplace factors. Since Walmart raised its entry-level wage to $9 in 2015, employees reported that increases have done little to improve their quality of life. Mouthwash. Costco Pay & Benefits: Costco pay: cashiers @ ~$15.23/hour, warehouse stockers @ ~$14.81/hour; Costco benefits: Health, dental, life, disability, AD&D, vision, pharmacy plans. Besides an affordable healthcare insurance and a dental plan that includes recounstruction surgery, team members can enjoy COSTCO's first-class maternity support … As a result, Costco is much more efficient with its use of labor, meaning it can afford to pay its employees less. I’ve not done a line-item comparison, but it’s probably safe to … Things are a little different at Costco, which employs about 200,000 people. A base wage isn’t the whole story, though. For other benefits, however, you must enroll to have coverage. Costco makes more than $10,000 in profits per employee, while Walmart takes home about $7,400 per worker, according to the Daily Beast (Walmart and Costco aren’t exactly the same type of business, however). Costco's average hourly wage of $15.97 is 38% higher than Wal-Mart's Sam's Club pays its workers. Wages vary based on each employee's role and most workers are covered by the company’s benefits plan which includes a 401(k), health insurance, dental insurance, drug plan, vision care, and others. Learn more about each company and apply to jobs near you. The above table shows that Walmart is inefficient compared to Costco in using its retail space and could benefit from a higher volume of online ... company employees… (And you might be surprised to know that Walmart actually sells a 255-ounce container, which is larger than what Costco carries.) Refer Walmart spends a great deal of money on advertising to the general public—something Costco doesn't really do. Once it improves its reputation as a safe, welcome, and inexpensive place to shop, Walmart too will be able to rely on word-of-mouth advertising. Higher wages motivate employees to be more productive and encourage more dedicated employees to apply for employment. With new products like an Amazon-style free shipping pass, in-store pick-up options, curbside delivery, and improved in-store customer experience, Walmart plans to instill loyalty in their customers. Costly employee turnover is minimal and staff are uber-productive and promoted from within. At Costco, employees earn 40 percent more than at Wal-Mart’s Sam’s Club. COSTCO offers first-class health benefits to its employees, of which some can be used by employee's family members. The retailer buys in bulk, has a relatively low number of stock-keeping units (SKUs), and only offers one brand of each product to secure lower pricing from suppliers. In contrast, Walmart CEO Mike Duke made roughly $19.3 million during the same year. Walmart (WMT), on the other hand, has a multi-billion dollar plan to improve its American stores and is venturing into Costco’s territory, paying its staff higher wages and improving the customer experience to regain its customers. (emphasis added)” As the old saw goes, you get what you pay for. Costco carries this brand for 4.4 cents per load, while Walmart offers the detergent for 4.6 cents per load. COSTCO offers first-class health benefits to its employees, of which some can be used by employee's family members. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. Average employees wages at the warehouse retailer are $21.96 per hour, and most of Costco’s U.S. employees are eligible for benefits. 63 / 100. The rankings from the employer-review website were based on an anonymous online survey that asked employees to rate how satisfied they were with their pay and benefits … About 11 percent of Costco's 127,000 employees are represented by the Teamsters Union, while not one Wal-Mart employee is a union member. It does this by operating in eight countries with locations that are far from aesthetically pleasing.