1. Walmart (Sam’s Club) Costco
• 102,000 employees • 68,000 employees
• Annual turnover rate • Annual turnover rate
of 21% of 6%
• Replacement cost is • Same replacement
1.5 to 2.5 X salary cost
• $755/yr per employee • $300/yr per employee
to cover costs of to cover costs of
turnover turnover
• 47% covered by • 82% covered by
healthcare ins. healthcare ins.
• $35 billion in revenue • $34 billion in revenue
from 102,000 from 68,000
employees employees
• When productivity is • When productivity is
included, labor rates included, labor rates
are 17% are 9.8%
• Low price/low service • Lower price and high
strategy service strategy
From Cascio (2004) &
Business Week