Tuesday, November 27, 2012

Costco gets it.


I have recently been reading many sites about the difference between how Costco treats its employees and how the Wal-Mart Corporation treats the men and women who work for it.   

I am reminded of a talk I heard Herb Kelleher of Southwest Airlines give one day.  He was responding to a reporters question as to why southwest would eventually win the war of carriers in the DFW area.  He stated, “We will. Because we treat our employees better than the other guys across town.  If you put your employees first, they will take care of everything else for you. Take care of them and they will take care of your customers. Taking care of your customers will build business and that will take care of the shareholders and investors. The folks who don’t do it that way, have the model turned upside down.  And it doesn’t work as well that way.”

Costco has learned the lesson well. I wish other American companies would, too. 

Pay your employees a decent-life-living wage, give them benefits and treat them like humans and they will be loyal and work their buns off for you. Treat them like dogs and you get dog shit in return.

End of business school for the day.

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