Culture Head to Head Series – Aldi v Tesco

by | Nov 4, 2024 | Case study, Culture

Comparing company personalities using our twelve topic Culture framework reveals the strengths and weaknesses of company cultural behaviours and their employee value drivers. Enjoy our Head to Head series for CultureExperts

Who wins:
ALDI: More Empowered, Pay & Reward, Agility and Career Progression
Tesco More Learning, Work-life balance and Purpose

Key Observations and Analysis

Cultural Behaviors

  1. Agility & Bureaucracy
    Aldi scores -23.8%, while Tesco scores lower at -46.0%. Both scores are negative, indicating perceptions of bureaucracy, particularly at Tesco. Streamlining processes at Tesco could improve agility, helping it to be more responsive to market changes, a quality that Aldi seems to maintain slightly better.
  2. Empowered
    Aldi has a score of -3.6%, while Tesco scores -26.6%. These scores indicate that Aldi employees feel somewhat more empowered than those at Tesco. Increasing empowerment initiatives at Tesco, such as granting employees more decision-making authority, could enhance engagement and morale.
  3. Progressive
    Aldi scores -70.1%, while Tesco is slightly better at -59.6%. Both companies are viewed as less progressive, with Aldi perceived as more conservative. Emphasizing innovation and modern practices could benefit both retailers, particularly as the grocery sector continues to evolve with new technologies and customer expectations.
  4. Diversity & Inclusion (D&I)
    Aldi has a score of -39.3%, while Tesco is notably better at -3.0%. Tesco’s relatively higher score suggests some level of inclusivity, whereas Aldi’s more negative score indicates room for improvement. Focusing on D&I initiatives could help Aldi create a more inclusive workplace, appealing to a broader range of talent.
  5. Collaborative
    Aldi scores +66.0%, with Tesco slightly higher at +66.2%. Both companies demonstrate strong positive sentiment around collaboration, suggesting that employees perceive a supportive and teamwork-oriented environment. This collaborative culture can be a valuable asset for driving efficient operations and fostering a positive work environment.
  6. Supportive
    Aldi has a score of -30.1%, while Tesco scores slightly lower at -31.7%. Both scores are negative, indicating that employees in both organizations may feel a lack of adequate support. Strengthening support mechanisms, such as accessible management and mentorship programs, could enhance employee satisfaction.

Employee Value Drivers

  1. Purpose
    Aldi scores -73.9%, while Tesco scores -78.4%. These negative scores suggest that employees in both companies feel a disconnect from their organization’s mission, with Tesco showing a slightly greater gap. Improving purpose alignment through clearer communication of each company’s vision could foster a stronger sense of motivation among employees.
  2. Work-Life Balance
    Aldi has a score of -37.1%, while Tesco scores higher at -11.1%. Both companies show some dissatisfaction with work-life balance, though Tesco’s score suggests a relatively better balance. Addressing work-life balance concerns, particularly at Aldi, could improve employee well-being and retention.
  3. Learning & Development
    Tesco scores +31.8%, which is notably higher than Aldi’s +11.5%. Both companies have positive scores, but Tesco’s significantly higher score suggests it may offer more robust development opportunities. Investing in further learning and growth programs could enhance Aldi’s employee value proposition.
  4. Career Progression
    Aldi has a score of -9.6%, while Tesco scores lower at -46.5%. Both companies display dissatisfaction in this area, with Tesco showing a stronger perception gap. Providing structured career pathways and clear promotion criteria could improve employee motivation and retention at both organizations.
  5. Pay & Rewards
    Aldi scores +65.5%, while Tesco scores +43.1%. Both companies have positive scores, indicating general satisfaction with compensation, though Aldi’s higher score suggests it has a stronger alignment with employee expectations in this area. Competitive pay is essential in attracting and retaining talent in the retail sector.
  6. Tech in Workplace
    Aldi has a score of -53.8%, while Tesco scores -22.2%. Both companies show negative sentiment around workplace technology, particularly at Aldi. Improving technology resources could enhance productivity and employee satisfaction, especially as the retail sector becomes increasingly tech-driven.

Summary

In summary, Tesco demonstrates strengths in learning and development (+31.8%) and diversity and inclusion (-3.0%), while Aldi shows strengths in pay and rewards (+65.5%) and empowerment (-3.6%). Both companies face challenges in purpose alignment and technology satisfaction. Tesco could benefit from improvements in agility and career progression, while Aldi might focus on enhancing D&I and workplace technology.

This analysis provides insights into key cultural and employee value drivers for Aldi and Tesco, highlighting areas for strategic improvements to strengthen employee engagement, retention, and satisfaction in the retail sector.

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