It's not exactly a secret that a core part of Costco's business model is treating members well and making them feel valued.

"The most important item we sell is the membership card," Costco CEO Ron Vachris told Fortune magazine in 2024.

Costco also recognizes that if it wants to retain members, it needs to keep investing in ways to improve the customer experience.

Many people are cutting back on spending in the wake of persistently elevated living costs. For some, a Costco membership isn't a given β€” it's a luxury.

"We continue to invest in building a larger pipeline of new warehouses, remodeling our existing warehouses to drive continued growth in high-volume buildings, expanding our depot network to support operations, and enhancing the member digital experience," CFO Gary Millerchip told investors during the company's most recent earnings call.

And there's another investment Costco is making that could make shopping there better.

Costco has always prided itself on treating its workers well. The company is known to have a competitive starting wage, and upward mobility within the company is common.

In fact, Costco's current CEO Ron Vachris began his career as a forklift driver. Now, he's running the company.

Related: Costco proves it’s winning the price war

"We feel good that we will continue to reinvest," Vachris said during Costco's most recent earnings call. "That is what we do, both in employees and in pricing and in the business overall."

Last year, Costco shared plans to increase pay for most of its hourly U.S. store workers to more than $30 per hour, Reuters reported. And it seems the company is making good on that promise.

In a recent Reddit thread, Costco employees shared what their hourly pay looks like. And the numbers were impressive.

"I make 32.90 an hour while cashiering, and 33.90 an hour while driving a forklift in the morning," said one employee.

Another Redditor said they're now making more than $40 per hour.

But it's not just that Costco pays a generous wage. As another Reddit user said, "I work 4-9 a.m. 5 days a week, and get great benefits for the family."

In addition to competitive wages, Costco employees enjoy perks including the following.

Health insurance, including dental and vision

A 401(k) plan

Life insurance

Short- and long-term disability insurance

Paid sick and vacation time

Employee assistance programs

Employee stock options Source: Costco

Clearly, Costco's higher wages are a positive thing for the workers the company employs. But it's not just Costco employees who benefit from competitive pay and incentives. Members get to benefit, too.

When workers are treated well, they tend to treat customers well. Not only that, but a more stable workforce can lead to a better customer experience. Longer-term Costco employees know the stores inside and out and are equipped to clearly explain store policies.

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Let's remember that consumers these days have lots of choices when it comes to shopping for groceries and essentials.

Discount grocers such as Aldi could seriously undercut Costco even when accounting for the savings that come with buying in bulk. And you don't need a membership to shop at Aldi.

But the value of a Costco membership isn't just access to low prices. Rather, it's about enjoying a consistently positive in-store experience β€” one that's powered by satisfied employees who can focus on doing their jobs with less financial stress because they're actually paid fairly.

Maurie Backman owns shares of Costco.

Related: Sam's Club fixes problem that's a major pain point at Costco

This story was originally published by TheStreet on Mar 20, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.