Wednesday, August 20, 2008

The Incredibles

The most glaring difference one sees when comparing the two companies is the attitude and execution of their labor practices.

The average hourly wage of a Wal-Mart employee is $9.68, while the average hourly pay of a Costco employee is $16. The average Costco employee makes over $40,000 after working there for three years, at which point Costco is also paying for over 90 percent of the employee's health insurance.

One almost wonders how such a generous company stays in business. The management of the company has stated again and again, however, that treating their workers well is not altruistic, but simply good business, and it would appear that they're right: Relative to the amount of revenue pulled in by each company, just under 10 percent of Costco's money goes toward paying its workers, while Wal-Mart ends up spending about 17 percent.