Costco Compensation and Benefit Systems

Costco Compensation and Benefit System
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Introduction
Every organization has a set system of compensation and benefits. The system for each organization is standard and is often a guide on how the remuneration is to be done for all employees. The requirement is that when setting up a compensation and benefit system, it has to be in tandem with the existing laws on remuneration. The discussion herein will focus on the benefit and compensation package offered by Costco Company.
Costco has been hailed as one of the few companies internationally that has good package of compensation to their employees. Their standards are not just recognized in the retail market but rather cut across the entire industry. A report that was recently released indicates that Costco is ranked second internationally after Google as far as exceptional compensation is concerned.
The credibility of the ranking done on Costco is based on the fact that employees of the company speak highly of the same. With a good number of the employees interviewed, majority are happy with what the company is offering as compensation package. In assessing the position of the company in the market, the company scored 4.4, missing only 0.6 for the entire system (Retail Information Systems. June, 2014). The employee satisfaction rate was graded at 3.8 with only 1.2 employees not satisfied with package. This is a good performance for a company with a large number of employees. Asked whether they would be happy with their fiends working in the company, majority of employees said they would be happy to make recommendations to family and fields. The approval of the C.E.O by employees stands at 92%. Based on what is seen with other companies, this is seen to be an exemplary performance, almost perfect. Some of the benefits that Costco offers to her employees include an elaborate medical cover that is include of mental, dental, vision, hearing and substance abuse. The employees also enjoy a purchase plan for stocks and information to help employees manage their finances.
Costco has proven that proper remuneration for employees is cheaper than the opposite. A comparison of Costco’s performance with that of Wal-Mart is an indication that low wages can end being costly. Wal-Mart has for many years looked for all possible ways to cut cost. One of the ways they have constantly used to keep the cost down includes paying low wages to their employees (Retail Information Systems. June, 2014). The form of control that is exercised by Wal-mart is very unfair and oppressive to the employees. However, even after cutting down on the wages of employees Wal-Mart has continued to experience challenges that have threatened her existence in the market.
Sam’s Club is a subsidiary of Wal-Mart and is in direct competition with Costco. However, even being in the same market and engaging in similar business, there still is a huge difference between the two (Retail Information Systems. June, 2014). Costco seems to be dominating the market as Sam’s Club comes second. In Cost...