Although Costco pays its employees substantially more than its closest competitor,Sam's Club,it has similar financial returns on its labor costs due to which of the following?

Question

Quizplus · Accepted Answer

Costco's higher wages result in lower employee turnover, which in turn leads to more experienced and productive employees. This leads to higher levels of employee productivity than Sam's Club, who pays their employees less, ultimately resulting in similar financial returns on labor costs despite the higher wages paid by Costco.

Although Costco Pays Its Employees Substantially More Than Its Closest