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Does Costco offer its employees a fair wage and good benefits? Read on to find out.
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Many people shop at Costco regularly and marvel at the savings involved. Costco shopping can leave you with more cash to add to your savings account. But have you ever wondered what it would be like to work at a Costco warehouse club store?
On the one hand, working at Costco could mean spending a lot of the day on your feet. But if you’re someone who just doesn’t do well with a desk job, and you like the idea of getting to interact with people, then it could pay to see if your local Costco is hiring.
Before you take that step, though, you may be curious as to what sort of wage you might be looking at as a Costco employee. And the answer might surprise you — in a good way.
A far from shabby hourly rate
During Costco’s most recent earnings call, CFO Richard Galanti was asked to talk about employee wages. And the details he revealed actually paint a pretty positive picture.
Galanti said that 90% of Costco’s employees are paid hourly. And the average hourly wage for Costco employees is close to $26. So for someone working 40 hours a week and 52 weeks a year, that’s an annual income of about $54,000.
Granted, at that income level, you’re not necessarily rolling in dough and signing a $500,000 mortgage loan. But in some parts of the country, it’s possible to more than get by on an annual income of $54,000, especially if you’re single.
Also, Costco warehouse positions may not require the same amount of schooling as a corporate job paying more. It’s common for corporate positions to want a college degree or some sort of college. If you skipped that step, you may find that you’re able to earn more at Costco than at a competing retailer, or a comparable job that doesn’t require a degree.
Costco employees get other nice benefits as well
Not only is Costco’s hourly wage fairly generous, but in addition, Costco employees are eligible for what Galanti described as a “very rich healthcare plan.” Plus, Costco employees are entitled to a 401(k) plan contribution on the company’s part. And that free money for retirement is available “irrespective of what an employee contributes to his or her 401(k),” Galanti said.
It’s also worth noting that Costco contributes anywhere from 3% to 9% of employee wages to a 401(k) based on years of service. And while a 3% match is fairly standard, a 9% match is notably generous.
Should you apply to work at Costco?
If you’re earning a lot less than $26 an hour and aren’t happy with your workplace benefits package (if it even exists), then it could pay to look into applying at Costco. Even if you’ve been working in a corporate environment, if you’re feeling burned out at this point, taking a few months to work at a place like Costco could provide the refresh you need to pursue a different long-term job down the line.
Of course, if you are offered a job at Costco, you’ll want to pay attention to the fine print. Just because the average hourly wage is around $26 doesn’t mean that’s what you’ll be getting, especially if you don’t have much experience.
And it’s a good idea to compare wages and benefits across retailers you want to work for to see which pays the most and offers the best perks. But if the idea of working at Costco appeals to you, then it’s certainly worth looking into.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Gala. The Motley Fool has a disclosure policy.
