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A very old-fashioned, seniority-based IT department

Applications Developer
Current Employee
Has worked at Costco for 2 years
January 28, 2015
Issaquah, Washington
2.0
Doesn't RecommendPositive OutlookApproves of CEO
Pros

My comments reflect only my experience in Costco's IT department.

  • For some teams/people, flexible hours and work/life balance (40-hour work week).
  • Job security; Costco has not ever laid people off at the home office.
  • You work at one of the most stable, generous retailers in the world.
  • The medical benefits are cheap and generous.
Cons

My comments reflect only my experience in Costco's IT department.

  • Seniority-based culture rather than a meritocracy, similar to working in a union.
  • On some teams, some people are overworked while others leave early all the time and do little work.
  • Only 2 weeks of vacation to start until 5 years, non-negotiable.
  • No stock options or bonuses for IT employees.
  • Salaries and raises are lower than average; we lost many potential good hires to that.
  • Very low 401k match and few perks until more seniority is reached.
  • Full telecommuting schedules are not permitted and it is generally frowned upon even on an ad hoc basis.
  • Very slow, bureaucratic environment.
  • 10k maximum relocation allowance for non-management employees, which might be tough for bigger moves/families.
  • There are a lot of old technology (AS/400 and RPG) IT employees who know nothing else and are modern technology illiterate.
  • There are a lot of people who started in warehouses who are now in IT and have little/no formal IT training or outside experience.
  • Lots of bad decisions about software packages and putting everything in the cloud.
  • Lots of projects languish past their due date or are canceled and/or restarted halfway through.
  • If the warehouse workers knew about the waste going on in the home office, they would riot, since they work hard.
  • Lots of managers who should not be in leadership positions.
  • Senior employees/management are very resistant to change.
  • The executive management is not rallying the troops, and morale is very low in most groups.
Advice to Management
  • Understand that to attract good IT employees, you need to change pay, telecommuting, and vacation policies.
  • Give some folks early retirement incentives and, in their place, hire more modern technology talent.
  • Find managers who are true leaders.

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