Aldi's Recruitment and Retention Strategies

This assignment delves into Aldi's approach to human resource management, focusing on their strategies for recruitment and employee retention. It examines factors such as in-house recruitment, training programs, compensation structures, and the influence of organizational culture on employee commitment and turnover. The analysis aims to shed light on how Aldi's HR practices contribute to its success.

ALDI FROM AN HR PERSPECTIVE
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Table of Contents
Introduction......................................................................................................................................3
Introduction to Aldi.........................................................................................................................3
LO1:.................................................................................................................................................4
P1 Explain the purpose and the functions of HRM with respect to workforce planning and
resourcing in Aldi.........................................................................................................................4
P2 Explain the strengths and weakness of different approaches to recruitment and selection for
Aldi...............................................................................................................................................5
LO 2.................................................................................................................................................6
P3 Explain the benefits of different HRM practices within Aldi for both the employer and
employee......................................................................................................................................6
P4 Evaluate the effectiveness of different HRM practices in terms of raising Aldi’s or the
chosen organisations profit and productivity...............................................................................7
LO3:.................................................................................................................................................8
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making for Aldi............................................................................................................................8
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making for Aldi..............................................................................................................9
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples from Aldi......................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Human resource management is all about the process of managing as well as developing
the workforce that is working in the organisation. It is also known by the name of personnel
management and must not be overlooked by the company. Rather the managers should focus on
creating competent and skilled employees that are more effective in comparison to competitors
(Anitha and Begum, 2016). The present study thus focuses on assessing various concepts of
HRM as a newly appointed manager of Aldi for staff management within its new branch at
Wembley. Focus is thus required to be given on restructuring the department as a part of
organisational change that is taking place within the frim. Hence, emphasis of the study will thus
be on discussing purpose of workforce planning, approaches to recruitment and selection,
benefits of practising employee legislation as well as importance of maintaining good employee
relations.
Introduction to Aldi
Aldi is a leading discounted supermarket chain that has a presence of around 7000 stores in over
70 nations. The company is headquartered in Germany and it was found in the year 1913 as that
retailer which provides self-service. It has further been operating in UK since the year 1990. Its
operations are basically based on 3 core values being consistency, simplicity as well as
responsibility (About us, 2017). This thus aids in provision of high quality products to the
consumers that are also at best price. Financial base of the company is also strong enough so as
to aid in its growth and provision of excellent work culture to the employees. The company was
further given the award of Grocer of the year in 2016 and now it has a presence of 700 stores
within UK. It has all been possible on account of the hard work and commitment of its
employees which is also valued by the company and this it offers highest amount of pay as well
as benefits to its consumers (Butler, 2017). The company has further been named as the best
supermarket employer in Britain.
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LO1
P1 Explain the purpose and the functions of HRM with respect to workforce planning and
resourcing in Aldi.
HRM plays a very important role in any organisation including Aldi especially with respect
to workforce planning and resourcing needs of the firm as it is planning to open a new branch in
Wembley central. Several roles can thus be played by the human resource manager.
 Forecasting workforce needs - The need here is to carry out an accurate forecast of the
staff members in form of finance experts, sales agents, front desk staff, accountants,
supervisors etc. that will be required in the new branch so as to take steps accordingly.
The manager is further required to forecast the employees as per the annual budget of the
organisation as well as long/short term plans (Bolman and Deal, 2017).
 Recruitment and selection - need is further to decide over the recruitment and selection
process by which with candidates will join the firm. This is very essential as if the
processes are not good enough then inexperienced and candidates will be selected which
will create issues for the firm in near term future. For example, there can be use of
internal recruitment for supervisors while other staff members can be appointed through
job advertisements on website, portals, agencies among others.
 Orientation - This is also a key function of HRM in Aldi with respect to workforce
planning and resourcing for Wembley branch. The need here is that manager formulates
proper orientation programs and also appoints orienteers for the same so that the
employee is able to adjust with the new environment (Kallio, Kallio and Blomberg,
2015). With the help of orientation, the employee should further be made aware about the
duties and responsibilities so that he can work actively within the organisation.
 Training - Training function is also required to be performed by the organisation so as to
ensure that employees get properly skilled and are also tuned with aims and objectives of
the organisation. Training in this regard will be different for all staff members. For
example, supervisors whom have been recruited from another branch of Aldi would be
made aware about the work responsibilities and new roles such as that of trainer. While
accountants recruited from outside would be trained in their work role and
responsibilities.
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P2 Explain the strengths and weakness of different approaches to recruitment and selection
for Aldi.
Different techniques can be used by Aldi for recruiting the staff members in is new
branch opened in Wembley. These are as follows;
Internal recruitment – Aldi can carry out recruitment activities from other outlets that are present
in UK. This technique can be applied in case of Supervisors as the new branch will need
experienced personnel who are aware about the overall working of Aldi. The technique is quite
advantageous as recruitment can be done in a cheaper and quick basis (Anitha and Begum,
2016). Moreover the increased familiarity of staff with operations of Aldi will save the cost of
appointing trainers as well. It can also act as a source of promoting those staff members who are
generating good business for the firm (Marchington and et.al., 2016). However, it could lead to
resentment and conflicts among the exiting employees and also lead to lack of new idea
generation from outside the firm.
External recruitment agencies – Usage of agencies for recruitment by Aldi can be advantageous
in present case as they are well aware about the existing job markets. They have good contacts
with potential candidates and can help in generating a large pool of applications which can act as
a benefit for Aldi. However, taking the help of external agencies is a long process and also
expensive as a good amount is charged by the company (Bolman and Deal, 2017). But seeing the
market position of Aldi cost will not be a factor however the non-awareness of agencies about
culture at Aldi can act as a significant source of disadvantage when recruitment and selection
process is concerned.
Online job portals – there is a presence of many websites such as Monster.com, LinkedIn,
Facebook etc. where job vacancies can be posted by the company. The advantage of the same is
that the technological usage makes it easier to manage the job application in the right manner
which further makes the process of recruitment speedy and cost effective one. However it results
in generation of a large number of inappropriate applications which are difficult to scrutinise
Moreover technical difficulty in the website may further damage the brand name of Aldi with
respect to recruitment.
Selection techniques
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Interview – This is one of the main techniques that can be used for employee selection by Aldi as
it will assist the interviews in getting an overall sense about the personality of interviewer. Phone
interview technique can also be used if the session is to be arranged in short period of time that
gets convenient for both the parties (Peppard and Ward, 2016). However, this process requires a
huge amount of time on part of interviewer which may waste the necessary time of Aldi which
could have been utilised elsewhere.
Psychometric test – This can act as a significant technique for selecting the candidates by HR at
newly opened branch of Aldi as there is an absence of any human biasness which increases the
overall accuracy and appropriateness. On a negative side, these tests causes over interpretation of
the results if the interpreter has lack of knowlege about assessment. Hence test must be used in
combination with other techniques (Van der Voet, 2014).
LO 2
P3 Explain the benefits of different HRM practices within Aldi for both the employer and
employee
Different HRM practices are utilised by Aldi which has been benefitting both the
employee as well as employer. Aldi has been known to pay one of the highest salaries to its
employees amongst all supermarkets present in UK. This is as the firm wants to recognise the
valuable contribution given by the employees on a daily basis (Rodionova, 2017). This benefits
the employees in terms of boosting their overall morale and making them work with diligence
and integrity. The high pay packages also benefits Aldi as it is able to make sure that only top
class employees come to work for the company and the boosted employee morale thus aids in
increasing the overall productivity of the company.
Aldi is further investing a lot in training and development of its employees as it
understands their overall importance for future of the company. The presence of training
initiatives makes the employee more productive and they thus work hard for increasing the
profitability of the company (Rees and Smith, 2017). It further aids the employees in performing
their job in an effective manner which further aids in their career progression. It further benefits
the employers as it supports in growth of company because the employees are able to perform in
a better manner.
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Aldi has further maintained a culture of openness as well as transparency by which they
welcome the employees with open arms and ask for their suggestions as to how the company can
improve (Our people, 2017). This makes the employees feel engaged with the organisation and
they are thus motivated to perform better for the company. This further generates a feeling in the
employees that their work is valued and they thus take pride in the work that is done by them.
This ultimately benefits the company as worker productivity improves due to existence of
positive atmosphere within the organisation (Anitha and Begum, 2016).
Overall it can be said, in terms of the HRM practices, Aldi researches, designs as well as
implement effective tools and processes that render support to every stage of employee lifecycle.
This aids in overall employee retention and also secures the position of Aldi as being the
employer of choice (about us, 2017). Employees also benefit on account of the above processes
as they feel that their efforts are valued and respected by the firm which keeps them highly
motivated.
P4 Evaluate the effectiveness of different HRM practices in terms of raising Aldi’s or the
chosen organisations profit and productivity
On account of the above mentioned HRM practices, ALDI has been experiencing rapid growth
within UK retail sector and has overtaken the co-op thereby becoming fifth largest chain in the
nation. The group is further planning to open 1000 outlets in the nation by the year 2022 which is
726 at present (Butler, 2017). The firm is thus scaling up its operations in comparison to other
rivals which has been made possible on account of the hard work done by the employees that has
further been valued by the frim which pays the highest salaries to its employees. The firm has
further doubled its revenue in just a span of 3 years and attracted around 761000 new consumers
to its stores within UK. Moreover the share of Aldi within grocery market of UK stands out to be
6.2 percent. This is all on account of good performance given by its employees which is possible
due to efficient HRM practices utilised by the company (Anitha and Begum, 2016). The firm
should thus maintain the overall efficiency of HRM practices within UK so as to generate better
results in the coming future.
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LO3
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making for Aldi.
Retail firm within Aldi clearly understands the importance of maintaining good employee
relations as it aids in maintain work enrolment a happier one where the staff members enjoy
working and do not consider it as a burden. It further increases their overall motivation level as
they have a feeling that the employer values the work done by them. The same is required to be
practised in the new outlet of Aldi within UK which can be done by use of several techniques.
The practice of collective consultation should be done with the employees by making use of
elected representatives (Shen and Benson, 2016). This process is being used in other outlets of
Aldi where the management acts as a listener and gives an ear to the feedback of the employees
which make them feel part of organisation. This strategy should be practised in new outlet as
well so as to increase the overall concentration of employees and enhance the overall
productivity. It will further aid in increasing the overall trust level of employees as they will feel
comfortable in terms of expressing their opinion in front of management (Sparrow Brewster and
Chung, 2016).
Presence of good employee relations further puts an impact on the decisions made by HR as the
need is to modify the hours so that schedule of employee can be changed accordingly if they
wish to meet the HR manager for collective consultation in the newly opened branch of Aldi.
The need is further to maintain an open line of communication and hence decision should be
taken by hr. manager with respect to it (Riccucci, 2015). Boundaries should also be set for the
employees so that a highly open culture does not develops in the new branch. Employee relations
can further be maintained if the HR manager takes proper decision with respect to handling
grievance and if this happens then staff will further feel comfortable in the new branch and thus
good employee relations will be maintained (Singh and et.al., 2017).
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P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making for Aldi.
There is a presence of many different kinds of regulations in UK retail sector which are
concerned with the employees. These have a huge impact on the overall working of Aldi and
have been described below.
Equal pay act 1970 deals with salary related conditions for the employees. The legislation is
there to ensure that all the staff members working in same position get same pay irrespective of
the gender issues. Hence the management team at Aldi is required to ensure that no pay related
discrimination is done with the employees on the grounds of gender else it is bound to face legal
issues if complaint is filed by the employee. Then comes the disability discrimination act 1995
where it is required to be ensured by hr. that no discrimination is practiced against the employees
on the grounds of disability (Shields and et.al, 2016). The hr. manager at Aldi is also required to
make sure that no harassment or bullying is done against these employees which give them
mental or physical torture. Hence hr. manager is required to be vigilant in this regard and also
make strong policies towards the same.
Due to the presence of data protection act, Aldi is further required to make sure that it uses the
personal data of the employees only with respect to the purpose for which it is meant for. The
company is also required to be transparent with the employees in this regard. The same thing
must also be adhered in the contract signed between employee and management. This can be
done by ensuring that all kinds of details with respect to the use and processing of data is carried
out in a separate consent form which should then be duly signed by the employees (Singh and
et.al., 2017). It can decrease the pressure form the staff members as they are sure about the fact
that a free consent has been given by them. The procedures with respect to data encryption must
also be practiced by the authorities as security breaches can led to legal penalties for the
company. The decision further lies in the hands of HR manager as to how long the data is
required to be stored inside the system before getting permanently deleted.
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LO4
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples from Aldi.
Aldi adheres with varied types of human resource practices that are as follows;
It adopts a rigorous as well as comprehensive process for recruiting the candidates which has
been designed in order to estimate the strength, achievements as well as overall attitude of the
person. Then comes the selection process that is based on various competency tests based on
applied role followed by video, group and individual interview. The final stage involves for one
on one interview with the concerned person that varies as per the role (Insights into in-house
recruitment: ALDI, 2016). For example, area manager is usually interviewed by regional
managing director.
Aldi in the year 2015 held around 700 training courses that was attended by around 13000
employees which included on the job training, induction etc for developing the skillset. In the
same manner, a new performance review system was also started by the employees in order to
make sure that the staff members get right feedback and are able to discuss the personal
development and career planning in a proper manner. New courses meant for health and
wellbeing has also been launched to ensure that employees get the right support for developing
the skill set so that job can be done in a proper manner. Apprenticeship programme has also been
started by the company whose number was 738 in 2017 (Corporate responsibility, 2017).
Conclusion
From the above report it can be concluded that having proper policies and practices of human
resource management ids very essential for the success of new branch opened in Wemberly. This
will not only assist in maintaining the overall brand image of the company but also ensure that
the new branch operates with success. Hence the hr. manager must take proper steps with respect
to recruitment and selection and also in the area of maintaining proper employee relations.
Adherence should also be done with respect to employee legislations so as to get benefits in a
short span of time. The company in its other branches has been adhering with the HR concepts
and same is to be done in new branch as well.
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References
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<https://www.Aldirecruitment.co.uk/head-office/rolesold/recruitment-training/>
[Accessed on 18th January 2017].
Anitha, J. and Begum, F.N., 2016. Role of Organisational Culture and Employee Commitment in
Employee Retention. ASBM Journal of Management. 9(1). p.17.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership.
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<https://www.changeboard.com/article-details/16367/insights-into-in-house-recruitment-
Aldi/> [Accessed on 18th January 2017].
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Riccucci, N.M., 2015. Public personnel management. Routledge.
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Rodionova, Z., 2017. Aldi to become highest-paying supermarket in the UK with pay rise for
3,000-strong workforce. [Online]. Available through:
<http://www.independent.co.uk/news/business/news/Aldi-supermarket-highest-paying-
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Singh, H., Jamil, R., Baroto, M.B., Hussin, M., Boyi, Y. and Singh, S., 2017. Impact of Financial
and Non-Financial Incentives on Employee Performance. Advanced Science Letters.
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Routledge.
Van der Voet, J., 2014. The effectiveness and specificity of change management in a public
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structure. European Management Journal. 32(3). pp.373-382.
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