The Costco Way

While the market remains in love with the Wal-Martization of the economy, more and more the worry is starting about the long term effects of low-wage employers on the economy -- especially since short-sighted CEOs are following Wal-Mart's lead. Now here's evidence that paying employees higher wages doesn't necessarily translate into a company heading to a downturn. Check out this article in BusinessWeek on the Costco Way -- where employees are paid higher wages and in turn return to Costco, loyalty and higher sales per employee. In fact, Costco performs better than Wal-Mart. Goes to show you that not all companies have to go to the dark-side in order to turn a profit or stay healthy.