Costco increases starting wages from $16 - $17
Costco is a well-respected workplace that employees are happy to work for many years.
Many businesses complain about a lack of labor, but workers claim they don't get enough.
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Costco has raised its starting wages to $17 again, Costco informed Insider via email. The increase took effect on October 25,
The minimum wage at the big-box retailer was last increased to $16 in February 2021 from $15 since 2019, when it was previously $15. W. Craig Jelinek, CEO of Costco, called the recent raise "good business" and stated that higher wages lower turnover.
Jelinek stated earlier this year that while we are not perfect, we do our best to care for our employees. They play such an important role in our success. Costco is known for being one the most rewarding retail companies to work for. It ranks among the top companies with the most happy employees. Many employees are eligible for health insurance and get paid vacation. As of February, the average Costco employee had been employed for nine years. More than half of Costco employees earn more than $25 an hour.
Higher wages are one way that businesses have managed to keep workers employed in a retail industry facing a labor shortage. After workers' pressure and the Fight for $15 organization, Target and Amazon have raised their minimum wages to $15. Analysts and experts have called the labor shortage a misnomer. This implies that there aren’t enough workers rather than that there aren’t enough good jobs. Many people don’t want to work in low-paying, dangerous, or unsafe positions.
Many business owners in the industry claim they are unable to hire staff. In some cases, they even mention a lack of interest in working. Workers however say they can get better wages and benefits due to the tight labor market. Many restaurant and retail workers have quit the industry to escape low pay and difficult customers. There are more job openings, which makes it easier to find new jobs.
Have a story about a restaurant or retail chain that you would like to share? Email this reporter at mmeisenzahl@businessinsider.com.
