By Sahid Fawaz

Costco has earned praise for not following the Walmarts of the world and instead paying their employees a living wage.

And the company's CEO shared his reasons why it refuses to pay any less than that.

Business Insider reports:

"At Costco, hourly workers make an average of more than $20 an hour — well above the national average of $11.39 for a retail sales worker — according to a 2013 Businessweek story. For employees who put in 40 hours per week, that works out to about $43,000 a year.

In addition, Businessweek reports that 88% of Costco's 185,000 employees have company-sponsored healthcare.

Costco is primarily focused on making everyone who works at one of the company's 663 warehouses happy. The idea is that a more pleasant workplace will lead to lower employee turnover and a more productive workforce.

'I just think people need to make a living wage with health benefits,' CEO Craig Jelinek tells Businessweek. 'It also puts more money back into the economy and creates a healthier country. It's really that simple.'

To that end, the company's turnover rate is a measly 5% for employees who have been there more than a year."

For the rest of the story, check out the Business Insider piece here.

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