Starting wages: $13.29
Trader Joe's, the grocery store where employees wear tropical shirts and refer to managers as "mates" and store leaders as "captains" pays entry-level employees $13.29. At the company's 457 stores, employees also get a 10 percent store discount, access to leadership development courses, and paid vacation time.
Those higher wages and added perks pay off for the company, especially concerning employee turnover. According to Fortune, replacement costs for workers can be anywhere from 30-150 percent of an employee's yearly pay because of hiring, training, and separation costs. Companies paying minimum wage can turnover 50-200 percent of employees a year, costing businesses millions in labor costs. In comparison, Trader Joe's turnover of full time employees is less than 10 percent, according to the Harvard Business Review. Companies with higher wages (such as the aforementioned Aldi and Costco), tend to see less employee turnover, saving money in lessened labor costs.
