Dive Brief:
- Aldi is looking to hire more than 1,000 permanent positions at 380 stores in eight states including Ohio, West Virginia, Maryland, Illinois, Indiana, Georgia and Michigan, according to reports. The company is hiring positions for in-store, warehouses and corporate roles through October.
- Aldi's goal is to add 25,000 new jobs across the company. With this hiring spree, the grocer plans to invest $5.3 billion to remodel and expand to 2,500 stores by the end of 2022.
- “While many retailers are closing locations and facing a challenging retail climate, Aldi is expanding in every core area of our business, particularly our stores and warehouses,” Aldi U.S. CEO Jason Hart said in a statement. “We invite job seekers to be part of the largest expansion the company has seen as we advance our mission to help more than 100 million people save money on high-quality food every month by 2022.”
Dive Insight:
In order to support its rapidly expanding business, Aldi will have to figure out how to attract employees in a competitive job market.
The German grocer, which opened 135 new stores last year and is adding more in 2018, could have a competitive edge over some retailers. It has been ranked as one of the best places to work for three consecutive years in Forbes, as well as a top destination for women. Indeed also named it one of the best places to work when it comes to compensation and benefits.
Just like its cult-following among some consumers, Aldi’s employees are devoted to the company, and these rankings reflect that loyalty. The company’s Glassdoor reviews rave about Aldi's benefits and pay, the great work environment and the ability to meet new people. However, the main complaint across the board was a better work/life balance.
With mostly favorable Glassdoor reviews, one would expect the discount grocer to fill the 1,000 positions fairly easily. Unfortunately, Aldi’s hiring spree comes at a time when companies are struggling to find employees due to the economy’s tight labor market. As companies compete for workers, many are forced to offer higher wages and more competitive benefits. This is good news for employees. These extra costs, however, could squeeze margins and increase costs at retailers, which ultimately get passed on to customers. In the cutthroat grocery space where margins are low, these higher costs can be especially damaging.
Dollar General, another expanding discounted retailer, also has gone on a hiring spree recently. The company, which plans to hire 7,000 managers this year, is facing a similar challenge to Aldi — attracting and retaining quality talent. Target recently raised its starting pay to $12 an hour and plans to make it $15 by 2020. Walmart has increased its hourly starting pay to $11 and announced a tuition-assistance plan. Kroger also offered to help employees pay for college. Publix, a privately held grocery chain, also offers tuition assistance.
With Aldi, Lidl, Walmart and Amazon, among other retailers, expanding their footprint in grocery, retailers have little choice but to pay up in order to get the best employees to help distance themselves in the increasingly competitive space.