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Overnight Weirdness: "Belly"

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lawhawk10/16/2015 8:25:42 am PDT

re: #309 HappyWarrior

Employee retention is a big problem at companies - if you don’t pay them enough, they’ll seek out better opportunities elsewhere. It costs a significant amount of money to train people for certain kinds of jobs, so if you’re paying them crap wages, they’ll go elsewhere at the drop of the hat and turnover means higher costs as a result.

Costco realized this early on and pays more than minimum wage, so they have a lower than average turnover rate.

That affects the bottom line overall - in a positive fashion.

Other companies that don’t focus on this aspect end up paying higher costs through HR, turnover, and training over time.