Question

Describe Costco Wholesale Corporation (Lead Philosophy)Pay Philosophy?

Identify the direct financial compensation of COSTCO whole sale corporation?

Answer 1

Answer 1: Costco Wholesale corporations are the second largest retailer in the world after Walmart. It was founded in 1976 by Mr James Sinegal & Mr Jeffery Brotman and as on today they have operating revenue of USD 129 billion (2017).

The lead / Pay philosophy highlights the commitment shown by the organization to its employees and how much they value them. In order to overcome this philosophy the organization has created an ecosystem in which they have developed a pay structure depending upon the experience, qualification, and capability of the individuals. However, more proficient is the employee more he/she is nearer to the current market value.

Secondly, when the organization has well skilled employees who leverage themselves to learn and believe in reskilling in order to be capable enough to handle the future technologies, as in today disruptive world, every day the existing business models are getting changed therefore proficient pay methods will work wonders for the organization.

Answer 2: The direct financial compensation of COSTCO whole sale corporation consists of pay received in the form of wages, salaries, bonuses, medical reimbursement, leave allowance, special allowances, stock options and commissions earned by the employees against their labour hours provided to the organization as per the federal law.

This includes hour per basis work, set salaries for the full time / part time employees associated with the organization. This compensation helps the organization to flow the standard operating procedure developed by the law of the land in turn will help the public at large and to have a robust economy for the country as well.