- The Costco employee handbook says front end workers must "greet every member with a smile."
- The company says it takes significant pride in putting members' needs first, outlining a high standard for workers.
First-time visitors to one of retail giant Costco's wholesale warehouses may notice something special when a red-vested associate walks up: they're just so… nice.
As it turns out, that's by design.
The company considers great service to be its "most critical commodity," saying that without it, all other efforts by the business would be "fruitless," according to a copy of the 2022 Employee Agreement reviewed by Insider.
Front-end workers should "greet every member with a smile and present yourself in a professional, friendly manner," the handbook says. It also says a smile is one of the easiest ways to demonstrate good customer service, and that they should "give each member your sincere gratitude."
Of course, Costco is by no means the only company with a smile policy.
Earlier this year, gas station and convenience store chain Sheetz came under scrutiny for its requirement that customers be greeted with a smile, and later dropped its requirement that employees have no visible dental problems after Insider's reporting on the issue.
For Costco's part, employees are simply expected to practice good grooming and hygiene habits, with additional safety requirements for workers in food service.
Chick-fil-A also has a pattern of politeness, topping the list of restaurant chains with employees who were most likely to say "please" and "thank you" during a customer interaction.
Costco employees told Insider that the smile requirement does not really stand out from the myriad other items they must keep in mind throughout the day, and that it's not specifically enforced anyway.
If any issues did arise regarding customer interactions, they would likely be handled in small-group meetings, one manager said.
"One thing we are repeatedly told and is also enforced is to greet a member if you come within five feet of them and ask them if they need any help," a forklift operator in Chicago said. "Most employees genuinely enjoy helping out members. Even with stockers and forklift drivers member service is considered our number one job."
For other workers Insider spoke with, it appears the company gives several reasons to smile, from above-average wages, to a substantial benefits package, and a generally supportive workplace culture.
The attention to detail translates to real results for the company.
The latest shopper survey by the American Customer Satisfaction Index ranked Costco best among general merchandise retailers, beating out wholesale rivals Sam's Club and BJ's by one and two points, respectively.
Not bad for a company that requires a $60 membership to shop there.
Are you a current or former Costco employee? Get in touch with Dominick via email here.