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Costco No Longer Wants to Hire Business School Grads

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Twenty20

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January 18, 2019

Costco has long been known as one of the best companies to work for. They offer great pay, good benefits and a path to move up in the company. And a climbable corporate ladder is one reason the company doesn't hire candidates with MBAs, according to a 2013 Bloomberg profile on CEO Craig Jelinek. 

 

"Costco does not hire business school graduates—thanks to another idiosyncrasy meant to preserve its distinct company culture. It cultivates employees who work the floor in its warehouses and sponsors them through graduate school. Seventy percent of its warehouse managers started at the company by pushing carts and ringing cash registers," Bloomberg wrote.

 

There are benefits to this system. Bloomberg reports that turnover at the company is crazy low: 5% for people there for longer than a year and just 1% for company executives. By promoting people from within, Costco is able to foster a strong company culture AND create a sense of loyalty between it and its employees.

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