ALDI US 2019 LEARNING PLAN

Contents
INTRODUCTION ............................................................................................................................................. 3
CURRENT ENVIRONMENT ............................................................................................................................. 3
OBJECTIVES ................................................................................................................................................... 3
WHY LEARNING? ........................................................................................................................................... 4
TYPES OF TRAINING ...................................................................................................................................... 7
Onboarding Training – 2,000 New Employees.......................................................................................... 7
Associate Onboarding Training ................................................................................................................. 7
Management Training – Enhancements ................................................................................................. 10
Management Readiness Training – Leadership Exploration Training Program ...................................... 11
Mentor Meetings .................................................................................................................................... 12
Increasing Productivity of Existing Employees............................................................................................ 13
New Product Training ............................................................................................................................. 14
Current Employee – Training Offerings and Required Annual Training ..................................................... 15
ADDITIONAL RECOMMENDATIONS ............................................................................................................ 16
FINANCIAL INFORMATION .......................................................................................................................... 18
At a Glance .............................................................................................................................................. 18
2019 BUDGET .............................................................................................................................................. 19
MODULE DEVELOPMENT COSTS ................................................................................................................. 20
MENTORING PROGRAM COSTS .................................................................................................................. 21
PAYROLL BUDGET ....................................................................................................................................... 21

2
 ALDI US 2019 LEARNING PLAN

INTRODUCTION

Although news that Aldi’s current market share is expected to grow rapidly is exciting, it should not be

celebrated prematurely. Unless the current level of investment in the training and development function

is increased, projected growth will be unsustainable considering only half of the recommended staffing

increases have been approved and current enrollment in talent development for management positions

falls short of the projected need by 84%.

What follows is a comprehensive outline of how an increase in the training and development budget will

sustain projected growth in the 2019 calendar year.

CURRENT ENVIRONMENT

2019 strategic goals cannot be met without the learning and development department ensuring

employees have the relevant skills, knowledge, and competencies to fulfill their job responsibilities.

Based on the results from the 2018 training needs analysis and feedback from stakeholders in

accounting, human resources, and operations the following must be addressed in 2019:

Associate and manager staffing requirements to sustain and support growth

Current employee productivity

Current employee development

Efficacy of current training programs

OBJECTIVES

Based on Aldi’s core values and the current environment the following learning objectives have been

identified for 2019:

3
 ALDI US 2019 LEARNING PLAN

Revise existing onboarding processes to improve performance and accommodate the 2,000 new

associates that will be hired this year. Success will be determined by new associates

demonstrating their ability to perform their job duties consistently, correctly, and efficiently.

Address current employee productivity and development by revising the existing training

program for the product tracking platform and implementing development programs that

increase customer engagement and employee product knowledge. Success will be defined by a

statistically significant increase in both employee productivity and customer satisfaction rates.

Increase efficacy of existing training programs by better utilizing the capability of the current

learning management system and converting appropriate training topics into e-learning. Success

will be measured by increased employee interest in optional training programs and assessment

scores.

WHY LEARNING?

Interviews with internal stakeholders revealed a common misconception- investing in the learning and

development function does not improve the bottom line. Although allocating available resources to

tangible improvements like remodeling older stores may a popular alternative, it is short sighted.

Research consistently shows that effective employee training and development increases profits and

productivity substantially. An extensive study of 575 US based, publicly traded firms initiated by the

Association for Talent Development (ATD) found:

Firms who increased their training investment to $680 per employee, experienced a 6% average

increase in TSR the following year.i

4
 ALDI US 2019 LEARNING PLAN

Firms with high average per-employee training investments reported 24% higher profit margins

and 218% higher income per employee than those with low employee training expenditures.ii

A separate study found that a 10% increase in workforce education lead to an 8.6% gain in employee

productivity whereas the same increase in equipment value only lead to a 3.4% productivity increase. iii

Given that 2,000 employees will join the Aldi team in 2019 and the proven impact training and

development has on the bottom line, investing in the training and development function is an important

component to maintaining Aldi’s existing competitive edge.

Investing in training and development will impact current employees as well. Information provided by

other departments indicated that the challenges threatening the sustainability of Aldi’s competitive

advantage are best addressed through employee learning and development. For example, analysis from

the accounting department showed that new products sit on the shelves the longest and the operations

department identified employee’s lack of product knowledge as a common customer complaint.

Considered together, this feedback indicates current new product training is ineffective. Careful product

selection is a proven component of Aldi’s success and if employees are unable to impart to customers

why Aldi products are exceptional, the business model will fail. To address a lack of product knowledge,

new product training will be designed to promote better information retention and teach employees

how to leverage their knowledge while engaging with customers to increase sales.

Additionally, the human resources department reported that recent applicants do not have the

necessary skills to be successful members of the Aldi management team. This indicates Aldi is not

attracting the right applicants. Based on extant research, attractive candidates who see a strong learning

and development department are more likely to apply. For example, 87% of millennials (who represent

the largest age group in the current workforce) cite career growth and professional development as very

important factors in employment decisions. When asked to identify the workplace policy that is most

5
 ALDI US 2019 LEARNING PLAN

important to them, 68% of workers said it was training and development.iv Although Aldi has a relatively

low turnover rate, when deciding on how to allocate resources for the upcoming year, consider that a

lack of training is one of the top four reasons retail employees leave their jobs.v

Considering the information above, exceptional sales growth, and the substantial employee onboarding

initiative that has been approved, there is no better time to invest in learning and development at Aldi.

6
 ALDI US 2019 LEARNING PLAN

TYPES OF TRAINING

Onboarding Training – 2,000 New Employees

Specific stores with high Assistant Manager and Manager performance within the system will be

designated as training locations. Training locations are allowed to staff Associates up to a 130% FTE rate,

as these locations will feed nearby locations when turnover occurs or headcount increases. These

locations may also staff additional Assistant Managers upon review with Area Managers.

After completing an initial week of training, associates may then be transferred to a designated store

location the same metropolitan area. If a single store exists in a designated metropolitan area, it will by

default become a training location to eliminate the cost of travel and board related to training. Such

stores will be allowed to staff Associates up to 120% FTE rate.

Associate Onboarding Training

Week 1: Orientation

The first week of Associate Onboarding Training is instructor-led training conducted by a corporate

trainer or designee at the training location. Content will be adapted and expanded from current

Onboarding training materials. Associates attend 40 hours of training over five days during this week.

Day 1: Getting Started

o Introduction to Aldi Corporate Culture

o New Hire Paperwork

o Introduction to Corporate Office

o Core Values – Consistency, Simplicity, Responsibility

o History of Aldi

7
 ALDI US 2019 LEARNING PLAN

o Safety and Security

o Evaluation

▪ Assessment is completed through an eLearning module deployed via LMS that is

completed by each associate at the end of the day. Associates must score 80%

or higher to pass

Day 2: Store Operations

o Store Layouts and Departments

o Stocking Shelves to be Customer Friendly

o Get More Done in a Day

o Where Does the Money Go for Associates

o Loss Prevention for Associates

▪ Assessment is completed through an eLearning module deployed via LMS that is

completed by each associate at the end of the day. Associates must score 80%

or higher to pass

Day 3: Transaction Training

o Transaction Platform

o Customer Service

o Payment Methods

o Voiding Transactions

o Balancing/End of Shift

o Evaluation

▪ On the Job assessment – trainees enter the store and using a register in test

mode, perform transactions and answer customer questions in role play with

8
 ALDI US 2019 LEARNING PLAN

corporate trainer, training store Assistant Manager, or designee; requires a

score of 80% or higher to pass

Day 4: Products

o New Product Training

o New Product Tracking Platform Training

o Evaluation

▪ On the Job assessment – trainees enter the store and using a register in test

mode, perform transactions and answer customer questions in role play with

corporate trainer, training store Assistant Manager, or designee; requires a

score of 80% or higher to pass

Day 5: Review & Wrap Up

o Dealing with Difficult Situations for Associates

o Sexual Harassment for Associates

o Future of Aldi

o Evaluation

▪ Assessment is completed through an eLearning module deployed via LMS that is

completed by each associate at the end of the day. Associates must score 80%

or higher to pass

Week 2: On the Job

The second week of Associate Onboarding Training is on the job training led by the Assistant Store

Manager at the Associate’s home location. Associates are scheduled for 32-36 hours during this week.

On the Job Training will reinforce lessons from Orientation Week 1

9
 ALDI US 2019 LEARNING PLAN

Evaluation

o Assessment is completed through an eLearning module deployed via LMS to be

completed by each associate at the end of the day. Associates must score 80% or higher

to pass

o On the Job assessment – Assistant Manager or designee will review performance

metrics daily including: transaction accuracy, balancing, and customer service survey

feedback; Assistant Manager or designee will also provide and record observational

feedback using the performance management platform.

Management Training – Enhancements

To enhance the existing Management Training program, in addition to updating existing content, the

following eLearning modules should be added. Each new module will have an estimated participant seat

time of one hour, including assessment.

Recruiting/Hiring the Right People

Building Business Acumen

Each eLearning training module will include an assessment to be completed by each participant at the

end of the module and requires a score of 80% or higher to pass. Attempts and scores are tracked

through the LMS. We recommend that Aldi considers adding a performance metric tied to employee

turnover as part of Manager and Associate Manager performance evaluations in 2019.

10
 ALDI US 2019 LEARNING PLAN

Management Readiness Training – Leadership Exploration Training Program

The intended audience of this course is employees who are interested in exploring leadership

development opportunities at Aldi. In addition to completing management-level training requirements,

prospective employees would participate in an eLearning program (deployed through the LMS) that is

based on Aldi’s core values. Each module of the learning program has an estimated seat time of one

hour, including assessment. The training program would be open for enrollment at any time and is

largely self-paced, with a guideline for completing this training program within six months to one year.

Each lesson within the core values modules has an estimated participant seat time of one hour,

including assessment. Each eLearning training module would include an assessment to be completed by

participants at the end of the module. Participants must have a score of 80% or higher to pass and

attempts and scores are tracked through the LMS.

CONSISTENCY - Leads to reliability. We mean what we say. We are consistent in our dealings

with people, product, price and all other aspects of our day-to-day professional life.

o Scheduling and Resource Allocation

o Product and Inventory Management

o Get More Done in a Day for Managers

o Stocking Shelves to be Customer Friendly

o New Product Tracking Program Training

o New Product Training

SIMPLICITY - Creates efficiency, clarity and clear orientation within our organization as well as

for our customers.

11
 ALDI US 2019 LEARNING PLAN

o Self-Awareness Training

o Conflict Management

o Dealing with Difficult Situations for Managers

o Sexual Harassment for Managers

o Management Dos and Don’ts

RESPONSIBILITY - Stands for our commitment towards our people, customers, partners and the

environment. It also includes principles such as fairness, honesty, openness, service orientation

and friendliness.

o Human Resources for Managers

o Building Business Acumen

o Where Does the Money Go for Managers

Mentor Meetings

After completing the eLearning program, prospective leadership candidates would be paired with

current Assistant Managers within the store system as mentors. Candidates would meet over the phone

or exchange messages with their Assistant Manager mentor at least twice in a six-month period. The

goal of these meetings would be to review performance objectives, eLearning program evaluations, and

share insight on professional development with Aldi. Successful completion of the program would

reflect on participant’s internal records and is preferred for consideration for available Assistant

Manager roles.

12
 ALDI US 2019 LEARNING PLAN

Increasing Productivity of Existing Employees

The T&D department has identified three areas of need to enhance the productivity of existing

employees. A newly hired employee is considered an existing employee and it is recommended they

participate in this training after six months of employment.

New Product Tracking Platform Training

To increase utilization and acceptance of the New Product Tracking Platform Training, the training would

be rebranded and redeployed to all stores by the end of Q3, in preparation for Q4. This training would

be facilitated in a series of three meetings throughout Q3 to be delivered by Managers or Assistant

Managers. Effective implementation, meeting operations management’s approval of the New Product

Tracking Platform, and as employee feedback surveys would be the key evaluations for this training. It is

recommended that that Q4 performance metrics for each store include utilization of the New Product

Tracking Program as part of the quarterly incentive program.

Customer Engagement

This eLearning module will be added to annual training requirements and focuses on customer service in

the retail sales environment including best practices, making product recommendations, and closing the

sale. Training would include an assessment to be completed by each participant at the end of the

module and requires a score of 80% or higher to pass, with attempts and scores are tracked through the

LMS.

13
 ALDI US 2019 LEARNING PLAN

New Product Training

New Product Ambassador Program

Beginning in 2019, when new products are introduced to the store systems, each store will be required

to have an Associate-level New Product Ambassador. One week prior to release, the T&D department

will provide a New Product Ambassador guide when products are released that will provide background

information, resources, and expectations for the New Product Ambassador. New Product Ambassadors

are expected to serve as subject matter experts for their designated new product within their store for

the month following the product’s release. They will also be asked to provide feedback on the product’s

performance to Managers. This will help to identify talent, including future leaders and provides a

leadership opportunity for associates who have not been considered for management development.

Quarterly Sales Training

Beginning in 2019, the T&D department will provide Managers and Associate Managers with quarterly

sales-focused training as part of monthly team meetings. This sales-focused training will target current

promotions, new products, and seasonal considerations. Managers and Associate Managers will need to

record associate participation and successful completion in these training sessions in the LMS.

New Product Contests

Beginning in 2019, the T&D department will support monthly new product contests. Each month, store

employees will be challenged with a promotional or sales focused new product contest. Progress and

results of these contests will be posted in the corporate intranet. Any materials produced will be for

internal use only and may be refined for utilization publicly by Aldi’s Marketing department. Employee’s

with winning submissions may be additionally compensated through the Marketing budget. Evaluation

14
 ALDI US 2019 LEARNING PLAN

of this program would include review of product performance as well as survey feedback from store

employees, and customers.

New Product Suggestions

We recommend Aldi considers acquiring an idea management platform for internal use and incentivize

feedback from store employees on new products to offer within the store system. Further research

would be required to identify and vet an idea management platform, as well as consultation with

Information Technology and Information Security.

Current Employee – Training Offerings and Required Annual Training

As part of the business plan for 2019, the T&D department proposes to better utilize the existing LMS

and enhance existing training offerings by converting popular topics to eLearning activities. To improve

customer service and better meet our core values, the T&D department also proposes that the training

modules below are required to be completed annually. All training modules have an estimated

participant seat time of one hour, including assessment. Each eLearning training module would include

an assessment to be completed by each participant at the end of the module and requires a score of

80% or higher to pass, with attempts and scores are tracked through the LMS.

Associates Only

Get More Done in a Day

Stocking Shelves to be Customer Friendly

Sexual Harassment for Associates

Dealing with Difficult Situations for Associates

15
 ALDI US 2019 LEARNING PLAN

Where Does the Money Go for Associates

New Product Training

Deputy Managers, Assistant Store Managers, Store Managers, Area Managers, Executive Offices

Get More Done in a Day

Stocking Shelves to be Customer Friendly

Management Dos and Don’ts

Sexual Harassment for Managers

Dealing with Difficult Situations for Managers

Where Does the Money Go for Managers

New Product Training

ADDITIONAL RECOMMENDATIONS
To address the issue of finding the right talent identified by Operations, the T&D department makes the

following recommendations:

Recruitment Strategy

Aldi should consider revisiting the overall recruitment strategy including improved job postings,

identifying sources for historically high performing talent, identifying where high performing employees

are succeeding within the company, and collecting more data on the employee life cycling including how

long employees are staying within the Associate role, as it is the position with the highest demand.

16
 ALDI US 2019 LEARNING PLAN

Talent Identification and Employee Retention

Goals and training within the Human Resources Department should be re-evaluated to better identify

talent and convert summer and winter Seasonal Associates to full or part time Associates at higher

rates.

Data Collection

As Assistant Store Managers and Managers do the most hiring for Aldi, it would be appropriate to begin

collecting and analyzing rates of retention on a store-by-store and department-by-department basis.

The potential of performance metrics around this data for Assistant Store Managers and Managers

should also be considered.

17
 ALDI US 2019 LEARNING PLAN

FINANCIAL INFORMATION

At a Glance

The largest expense in the 2019 T&D budget is wages paid during on-
boarding ($2.6M)

The costs of mentoring 260 future managers was calculated as an

additional expense for the time that the mentor and mentee meet to
discuss goals (payroll) of $150/mentee.

Cost of developing new learning module = $2,000/ module

Cost of revising current learning modules = $1,000/ module

18
 ALDI US 2019 LEARNING PLAN

2019 BUDGET

$3.3M Total Learning & Development Budget:

o Hire 2,000 new Associates
o Mentor 260 Manager Trainees
Total Cost for Manager Trainee Mentorship = 150/mentee
Total Cost for On-Boarding Program for 2019 = $1,314/trainee
2,000 Associates On-boarded and 260 Manager Trainees Payroll Expenses

19
 ALDI US 2019 LEARNING PLAN

MODULE DEVELOPMENT COSTS

Costs to Create and Update Training Courses

Total Cost for Course Development for 2019 = $55,000

20
 ALDI US 2019 LEARNING PLAN

MENTORING PROGRAM COSTS

Total cost to mentor a Manager Trainee = $150

Mentoring costs are only related payroll costs

PAYROLL BUDGET

Requested L&D Budget is less than 1% of the 2019 Payroll Budget (most
organizations invest 3% of their payroll budget for Learning and Development)

21
 ALDI US 2019 LEARNING PLAN

i
Business Training Experts . (2000). Profiting From Learning: Do Firms’ Investments in Education and
Training Pay Off? Retrieved from www.businesstrainingexperts.com:
http://businesstrainingexperts.com/knowledge-center/training-roi/profiting-from-learning/
ii
Business Training Experts . (2000). Profiting From Learning: Do Firms’ Investments in Education and
Training Pay Off? Retrieved from www.businesstrainingexperts.com:
http://businesstrainingexperts.com/knowledge-center/training-roi/profiting-from-learning/
iii
Gutierrez, K. (2017, August 22 ). Mind-blowing Statistics that Prove the Value of Employee Training and
Development. Retrieved from www.shiftlearning.com:
https://www.shiftelearning.com/blog/statistics-value-of-employee-training-and-development
iv
Gutierrez, K. (2017, August 22 ). Mind-blowing Statistics that Prove the Value of Employee Training and
Development. Retrieved from www.shiftlearning.com:
https://www.shiftelearning.com/blog/statistics-value-of-employee-training-and-development
v
Gutierrez, K. (2017, August 22 ). Mind-blowing Statistics that Prove the Value of Employee Training and
Development. Retrieved from www.shiftlearning.com:
https://www.shiftelearning.com/blog/statistics-value-of-employee-training-and-development

22