Key Takeaways for HR Executives: 

Listening at scale is possible and impactful 

Costco successfully executed small group listening sessions (10-15 employees each) across its entire workforce. As Francis explained, “Costco Connects meetings were open employee gatherings in smaller settings of 10 to 15 people. In store locations, these were typically led by the general manager, while at the home office, different department heads would facilitate the sessions.” The sheer scale – nearly half of Costco’s 300,000 employees participated – demonstrates that with proper planning and leadership buy-in, even the largest organizations can create meaningful dialogue with their workforce. 

Empower local leaders to drive the process 

Rather than centrally managing the initiative, Costco equipped its general managers and department heads to lead listening sessions. This decentralized approach allowed for greater flexibility and ensured conversations were relevant to local contexts. HR leaders should consider how to leverage existing leadership structures when designing listening programs. 

Provide robust support and guidance 

To ensure consistency and quality, Costco developed comprehensive toolkits for session facilitators. Francis noted, “We put together a comprehensive kit for all of our leaders, so they knew exactly what to do. We created FAQs that described their role, explained how to be a facilitator, and provided guidance on how to start each conversation.” This included conversation starters, active listening techniques, and guidance on handling sensitive topics. HR executives should invest in thorough preparation to set their listening initiatives up for success. 

Balance structure with open dialogue 

While Costco provided conversation starters, the sessions were intentionally unstructured to allow for organic discussion. This approach yielded unexpected insights, such as shared experiences around mental health challenges that might not have surfaced in a more rigid format. HR leaders should consider how to create “brave spaces” for authentic conversation in their organizations. 

Act on insights quickly and visibly 

After each session, managers were encouraged to recap key themes and outline action steps. This immediate follow-up demonstrated to employees that their input was valued and would lead to tangible changes. HR executives should emphasize the importance of closing the feedback loop in any listening initiative. 

Integrate with existing engagement efforts 

Costco plans to alternate years between this in-depth listening program and its traditional engagement survey.  This approach recognizes the complementary nature of different feedback mechanisms. HR leaders should consider how various listening channels can work together to provide a comprehensive view of employee sentiment. 

Listening builds trust and reinforces culture 

Francis and Weber emphasized that the initiative strongly reinforced Costco’s employee-centric culture. By creating dedicated time for open dialogue, the company demonstrated its commitment to its workforce. HR executives should view listening programs not just as data-gathering exercises, but as culture-building opportunities. 

Be prepared for emotional conversations 

The listening sessions often surfaced deeply personal stories and challenges faced by employees. Costco found it necessary to provide additional support and resources for managers facilitating these conversations. HR leaders should ensure that any listening program includes appropriate emotional and mental health support. 

Technology can support, but shouldn’t replace human connection 

While Costco is exploring AI and other technologies to enhance its HR capabilities, the company emphasized the irreplaceable value of face-to-face dialogue. HR executives should be wary of over-relying on technology-driven listening tools at the expense of human connection. 

Listening is an ongoing journey 

Costco views this initiative not as a one-time event, but as part of an evolving approach to employee engagement. Francis shared, “We’re going to do it again in 2025, and we’re really excited about it. We’ve learned a lot of lessons from the previous round. The company is already planning improvements for the next round of listening sessions. HR leaders should approach listening as a continuous process of refinement and adaptation. 

Costco’s ambitious listening initiative offers a compelling model for organizations looking to deepen employee engagement and strengthen workplace culture. By empowering local leaders, providing robust support, and emphasizing authentic dialogue, the company has created a scalable approach to listening that yields actionable insights. As HR executives navigate an increasingly complex talent landscape, Costco’s experience demonstrates the power of making time to truly listen to employees at all levels of the organization.