You, Too, Can Be a Millionaire by Working at Costco

A million-dollar nest egg may not be the usual outcome for a store cashier, but the Wall Street Journal reports that's exactly what Costco's pay-and-benefits strategy has helped produce. The news outlet follows 60-year-old Tony Barzar, who earns $32.90 an hour at a warehouse in Tucson, Arizona, and has quietly amassed more than $1 million in his 401(k). Barzar's story is used to illustrate Costco's long-running bet that paying front-line workers more, offering strong health coverage, and keeping them for decades is cheaper than constant hiring and training—and better for customers.

The company has raised its top hourly wage, expanded bonuses and vacation time, and added "culture coach" roles so veterans like Barzar can formally mentor new hires. Costco says "many thousands" of its US hourly employees are now 401(k) millionaires, even as some retire earlier than managers would like, taking their hard-won expertise with them. The retailer argues that the model still pays off, pointing to low turnover, rising sales, and a stock price that's soared over the past two decades. More here, including the company's perspective and Barzar's personal story, and here on how Costco treats its workers. Meanwhile, check out these takes on Costco employee pay and the jobs there with the best wages.