It would be easy to make a snap decision regarding whether Costco or Sam's Club employees enjoy better treatment. However, that's not what we set out to do. We wanted to check apples against apples to learn which environment is most employee-centric. To do that, we compared average employee pay, company benefits, the potential to unionize, and finally, what employees have to say. Here's what we found.
Average employee pay
Whether we're looking at hourly wages at Costco or Sam's Club, it's important to note that they are entirely dependent on the job title. To come up with an average nationwide hourly wage, ZipRecruiter included all employees -- those on the bottom of the wage ladder as well as those at the top.
According to ZipRecruiter:
- Costco: Average hourly wage of $20.91/hour, or $43,493/year
- Sam's Club: Average hourly wage of $19.31/hour, or $40,165/year
How an employee feels about their job can be directly tied to whether they have enough money in their checking account to cover bills. As we'll see later, the fact that Costco pays a better overall rate is likely one of the reasons Costco employees appear to be more satisfied with their jobs.
Winner: Costco
Benefits
It's a challenge to fairly compare the two company's benefits, primarily because offering the same benefits does not mean they are equal. For example, both companies offer health insurance, but all Costco employees are eligible, including full-time and part-time (after a specific period of employment). Health benefits at Costco include medical, dental, vision, and prescription drug coverage. While Sam's Club does offer health insurance, it's only available full-time employees. Both companies do offer a 401(k) plan with an employer match, though.
| Benefit | Costco | Sam's Club |
|---|---|---|
| Free club membership |  | |
| Health Insurance | | |
| 401(k) with employer match | | |
| Pension plan | | |
| Paid vacation time | | |
| Paid sick leave | | |
| Holiday pay | | |
| Employee stock options | | |
| Bonuses | | |
| Tuition reimbursem*nt | | |
| Paid maternity leave | | |
| Unpaid paternity leave | | |
| 10% discount on fresh produce | |
Data source: College Success Foundation and AisleOfShame.com. *Costco pension plan is available in unionized clubs only.
Winner: Costco, due to a more generous healthcare plan and bonus program. For example, long-tenured hourly employees receive an annual bonus as well as additional compensation twice a year in the form of bonuses and extra checks.
Potential to unionize
Due to its merger with the union-staff Price Club in the 1990s, employees working in the old Price Club locations are unionized. According to a Q&A feature on Indeed.com (where answers are provided by employees), even mentioning unions as a Sam's Club employee can lead to termination.
Winner: Costco
Employee satisfaction
The job search site Glassdoor gives company employees the opportunity to rate the company they work for. Along with the respect they're shown on the job, flexibility, and the opportunity to move up the ranks, this is where having enough money to save a little each month factors into job satisfaction. Here's how Costco and Sam's Club employees rated their respective employers.
Overall rating
- Costco employees: 4.0 out of 5
- Sam's Club employees: 3.3 out of 5
CEO approval
- Costco employees: 84%
- Sam's Club employees: 61%
Would recommend the job to a friend
- Costco employees: 76%
- Sam's Club employees: 54%
Winner: Costco
Perhaps the best snapshot of how well a company treats its employees can be found in one statistic: The turnover rate. While Costco experiences a turnover rate of 17%, Sam's Club has a rate of 44%. In our opinion, that makes the final decision easier. Costco treats its employees better than Sam's Club treats its employees.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
