Sample Management Essay Paper on Costco vs. Sears

Costco vs. Sears

Costco and Sears are both very well established business enterprises with a large national coverage as well as a very large number of employees depending on them for salary. However, there are very significant differences between them regarding the way they treat their employees. Although both firms provide employee benefits after retirement, they are not given on fairground. Only the executive employees will receive their retirement packages (The Canadian Broadcasting Corporation(CBC),2017)); unlike at Costco where benefits are fairly given. The other disparity between the two firms regarding the employees is the turnover. Costco is selective in the hiring process and this makes it possible to maintain the employee turnover to below 10%. This significantly reduces the turnover cost (Nature of human resource management(2019). This high turnover cost is one of the reasons why Sears have seen reduced profits and decided to close business and the laying off of massive numbers of employees.

The reduced profits are also another reason why the enterprise is not able to take care of its current and former employees and they are a result of high tuenover cost The employees at Costco receive a fairly large pay per hour compared to what those at Sears receive. The layoff process at Costco is also very fair compared to that of Sears; all employees that have applied for benefits receive them when they are due(PRWeb Newswire, 2013); however, at Sears, when the liquidation was bound to happen, the ordinary employees were destined to lose their benefits in addition to a not-properly-notified layoff. This is a very poor human resource management strategy.


100-year-old Former Sears Worker’s Health Benefits and Insurance Axed. The Canadian             Broadcasting Corporation(CBC). (2017). Retrieved from    Commends Costco for the low cost of employee turnover and high             benefits. PRWeb Newswire(2013). Retrieved from

Sears to lay off at least 250 employees. Promo (online exclusive) (2005). Retrieved from   

The nature of human resource management. Low price high pay (20-21). HRonline(2019) .                        Retrivieved from http.//