Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World

An insightful look at Costco and why it’s not quite like other retailers. 80% of gross profit is from membership fees alone; worker unrest is non-existent (even with a highly unionized workforce); self-service checkouts were removed because they were slower; in the midst of the financial crisis, the CEO distributed worker raises. It also raises a valid question whether it can survive well into the online age.

“It cultivates employees who work the floor in its warehouses and sponsors them through graduate school. Seventy percent of its warehouse managers started at the company by pushing carts and ringing cash registers. Employees rarely leave: The company turnover rate is 5 percent among employees who have been there over a year, and less than 1 percent among the executive ranks. That’s impressive, but it also suggests the company does not have a regular influx of outside views. Even John Matthews, vice president in charge of human resources, calls the company “awfully inbred.””

Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World

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