The (literal and figurative) benefits of working at Costco (Part 1 of 2)

I have written before about the good customer service provided at Costco and mentioned that the cashiers are adults and that the positions are full-time and come with decent compensation and benefits (May I help you? Checking out at Costco). In the next few posts, I am going to discuss these perks of working at Costco. This first post will focus on the literal benefits of working at Costco and the next post will discuss reasons that employees say they like working at Costco.

On Glassdoor’s scale from 1 (lowest rating) to 5 (highest rating), compensation and benefits received a 4.2. Similarly, Business Insider reported that compensation is the most frequently-mentioned upside to working at Costco

On average, Costco employees earn $16.73/hour. Of course, there is wide variation in pay across different job categories. For example, Retail cashiers earn $8.36/hour whereas Pharmacists earn $60.62/hour.

In addition to fairly competitive pay, Costco offer strong benefits to employees. These benefits are available for full-time hourly employees on the first of the month after working either 450 hours or 90 days and for part-time hourly employees after 600 hours of 180 days. Employees on salary are eligible on the first of the month after they are hired.

Here are some of the benefits that they offer:

-Coverage of spouses, children, and domestic partners

-They pay a larger percentage of the premiums than do most other retailers

-Employee-paid premiums are withheld pre-tax

-Medical, vision (including exams and glasses/contacts), prescription drug, hearing aid, and behavioral health benefits.

-Dental care plans

-Pharmacy benefits with low co-pays (and convenience as most Costco stores include a pharmacy)

-401(k) in which Costco matches employee contributions 50 cents on the dollar for the first $1,000 each year to a maximum company match of $500 a year ($250 a year for West Coast Union employees). Once employees meet eligibility requirements, the company makes an annual contribution to their account, which is based on a percentage of eligible earnings. This percentage increases with employee’s years of service.

-Dependent Care Assistance Plan, in which employees can pay for day care for children under 13, as well as adult day care, with pre-tax dollars.

-Care Network professional counselors

-Voluntary short-term disability insurance

-Long-term disability coverage (paying up to 60% of earnings if out past 180 days)

-Life insurance and accidental death and dismemberment policies at no cost for themselves, spouses, and children

-Option to purchase Costco stock by payroll deduction

-Health Care Reimbursement Account. Being able to pay medical and dental bills, including co-pays and deductibles, with pre-tax money can reduce your taxable income each year

-Long-term care (nursing home) insurance (employees with 10+ years of experience) for workers,  spouses, parents (in-law), grandparents (in-law), and siblings and children over the age of 18

What do you think of the pay and the benefits?

More or less than what you would have expected from Costco?