Costco report shows long employee tenure and strong retention rates

Costco is selling a labor model built on staying power, not churn. The company says its average employee tenure is nine years, more than 55 percent of U.S. workers have at least five years of service, and more than 23,700 employees worldwide have 25 years or more on the job. For warehouse crews, that means a floor where veterans are still around to train new hires, spot problems faster and keep the operation from feeling like a revolving door.

The retention numbers back up that message. In Costco’s 2025 annual report, the company said U.S. and Canada employees with at least one year of service had an approximately 94 percent retention rate. Harvard Business School’s Institute for Business in Global Society has cited research putting Costco’s turnover at about 8 percent, far below the roughly 60 percent turnover often cited for retail overall. That gap matters in a warehouse business where steady staffing can mean steadier pallets, cleaner handoffs and fewer mistakes for stockers, forklift operators, meat and bakery teams and front-end crews.

Costco also ties retention to pay. In July 2024, CEO Ron Vachris told hourly workers in the U.S., Puerto Rico and Canada they would get a $1-an-hour raise, with many positions starting at $19.50. Costco later said its top wage scales rose by another $1.00 per hour, bringing the average hourly rate for U.S. hourly employees to about $32.00 by the end of 2025. In its SEC filings, the company says reducing turnover, boosting productivity and improving employee satisfaction require compensation above the industry average for much of its workforce.

The company is also leaning on training and education as part of the retention playbook. Costco says more than 66,000 employees participate in its education, networking and mentorship program, and eligible U.S. workers can apply for scholarships of up to $2,500 per academic year for as many as four years. That kind of investment matters most when it is attached to real advancement, not just a nice line in a benefits packet.

Costco says the promotion path is real. In fiscal 2024, the company promoted 95 new warehouse managers, and 85 percent of them started as hourly workers. That is the clearest sign that the company’s high-wage model is not just about keeping labor peace; it is about building a pipeline from the floor to management. For workers deciding whether Costco is a stopover or a career, the numbers point to a place where long tenure is expected, and where staying can still lead somewhere.