The research compares two well-known and very similar retailers in the United States: Costco and Sam's Club.
The first, Sam's Club, pays employees an average of just over $11 per hour, and between 20-50 percent of its employees quit each year for various reasons. (I found conflicting data.)
Costco, however, pays employees an average of $17 per hour and replaces between 6-20 percent of its employees each year. After four years with the company, a Costco cashier can make $40,000 salary plus another 10 percent of that in annual bonuses.Said another way, Sams Club pays less for salary -- but up to 350 percent more for recruiting, hiring, and training expenses than Costco.
Even more impressive are the differences in sales at the two companies. At Costco, where higher-paid employees stick around longer (and thus are probably better trained, happier, and more knowledgeable about the store), sales average$814 per square foot.
At Sams Club? You guessed it -- just $586 per square foot.Read it at All Business
Higher Salaries: Costco's Secret Weapon
￼by David Worrell
(h/t beowulf in the comments)