PRICE CHOPPER CBT SLASHES TRAINING TIME FOR CASHIERS

DEENA AMATO-McCOY

SCHENECTADY, N.Y. -- The significant success of computer-based training for cashiers has paved the way for Price Chopper here to roll out CBT modules in five new areas chainwide, starting this month.

Price Chopper credits the cashier-training modules with helping reduce required training hours by 40%, as well as increasing employee retention rates, since launching the program in October 1995.

"Prior to CBT, basic training skills totaled about 30 hours. By using CBT, we cut those hours to 18 -- saving Price Chopper's training budget 12 hours per cashier," said Jack McKeough, director of training and communications for Price Chopper.

He added, "We are dealing with more than 5,000 cashiers within the chain, and these numbers enabled us to see a hard savings within the first year of implementation."

Price Chopper originally decided to implement CBT to gain consistency in its training program, with the goal of reducing turnover.

"We have seen an 11% turnover reduction chainwide in one year since implementing CBT," said John Cox, computer-based training specialist for Price Chopper. "CBT, along with other factors, contributed to this figure."

This month, Price Chopper will be adding new modules to its CBT library in the areas of deli, sexual harassment awareness, grocery basics, alcohol and tobacco sales management and storewide safety and sanitation skills. In addition to cashier training, the retailer is also currently using CBT for Occupational Safety and Health Administration training programs within its stores.

According to McKeough, this month the retailer will begin its CBT rollout of the deli module on 40 systems.

"Once the budget for this year is complete, we will roll out the deli CBT chainwide. Over 90 stores will be using the technology to train new hires in this area," McKeough said.

Once the deli program is in place, Price Chopper will add four additional CBT programs. The chain plans to roll out storewide food safety and sanitation skills, and alcohol and tobacco sales management CBT modules by the end of the summer; sexual harassment awareness training and grocery basics are scheduled to be live by year's end.

"We wanted to maintain the quality of training, but decrease the time it takes to train a new associate," said McKeough. "We knew that if we could reduce training time while impacting our turnover rate, there would be a strong savings and potential for a quick return on our investment."

Price Chopper began using CBT for its cashiers. "Based on software costs, the hardware necessary to launch CBT and the number of cashiers we hire and train each year, we discovered we could decrease the time it takes to train a cashier while experiencing a hard payback on our investment," he explained.

Cox reported that up to 120 newly hired Price Chopper cashiers can train through CBT simultaneously chainwide.

"The best training we have recorded so far is 398 cashiers [completing] training on 14 CBT systems within a four-week period," he explained.

Price Chopper managed to roll out CBT cashier training to its entire chain within a one-year time frame.

"We started the rollout by installing 100 multimedia personal computers with cashier-training software, then as we worked out the bugs we were able to complete the rollout within one year," Cox explained. He added, "One bonus to offering the CBT for cashier skills is there is a bagging module included for bagging training. This allowed us to train two positions for the price of one."

Price Chopper implemented new modules for safety training at the end of last year. The program also trained associates in the OSHA guidelines for fire safety, hazardous materials and conditions, and electronic equipment operations.

"Getting our OSHA-compliance CBT off the ground helped us gear up for our second full year of computer training," McKeough said.

Price Chopper plans to have a majority of its new associates train on its OSHA CBT.

"Out of over 17,000 associates chainwide at Price Chopper, we intend to train 10,000 to 12,000 associates annually with this program," Cox reported.

The key to Price Chopper's computer-based training is a combination of training methods.

"We do not consider the computer a replacement for the trainer," McKeough explained. "We allow 18 training hours for associates. An associate trains between eight and 10 hours on CBT, and the remaining eight hours are spread between classroom training with a trainer, and buddy or on-the-job training."

CBT replaced a more traditional training process that included using workbooks and video tapes.

"Training used to be conducted by department managers who supplied new associates with workbooks and videos," he said. "When you have between 400 and 500 different department managers training new associates chainwide, what was suffering was consistency."

The CBT system, however, is a hands-on learning tool that combines software, CD-ROM technology for audio and video, and an actual cash register keyboard used at Price Chopper's point-of-sale. These allow trainees to perform mock transactions in order to be comfortable with the POS.

"We were changing our registers in the midst of rolling out our cashier CBT and decided to add a real keyboard that matches our PC-based cash registers," McKeough explained. "Cashiers can respond on the keyboard to get used to real keys."

Cashiers go through each module answering questions in true or false or multiple choice formats. The computer keeps a running score on correctly answered questions, as well as those often missed. If a question is answered incorrectly twice, the software will replay the video portion of the area giving the cashier trouble.

After the switch to CBT, Price Chopper associates are exhibiting a higher level of retention of learned information.

"CBT allows for a thorough training process with a 75% retention rate, as opposed to a 30% retention rate with information learned from workbooks, and a 50% rate from video," said a source familiar with the situation.

In addition to CBT, this year Price Chopper plans to use the hardware to conduct interviews for new hires.

"We spent the last several months investigating a return on investment on computer-assisted interviewing," McKeough explained. "Once Price Chopper decided there was an [acceptable] ROI, we decided to move forward to implement CAI chainwide this year."

CAI begins with a telephone-based prescreening system. Potential job candidates call in to answer questions, including their availability to work. Depending on their answers, the automated system -- using manager input -- schedules an appointment at the appropriate Price Chopper store, including the date and time.

"When the candidate comes to the store, he participates in a 45-minute interview through the CBT unit," he said. "In 45 minutes we can get the equivalent to four hours of a one-on-one interviewing session."

The tool gives the hiring manager a report on the candidate, helping to make better decisions in the hiring process.

"The computer does not replace a one-on-one interview, but it will give us more consistent information on candidates," said McKeough. Price Chopper expects to see a 10% turnover reduction in its first year of using CAI.

Price Chopper looks at interactive programs such as CBT and CAI as a way to remain competitive.

"Our overall philosophy is that we are expanding, and in order to add new stores to remain competitive we need to expand our number of associates," McKeough said. "We need to be sure that we are doing our best to hire these associates and it is critical to train them to our best ability."

He added, "CBT and CAI are a cost-effective way to hire and train a lot of people spread over large geographical areas with some degree of consistency."

The CBT program is from Payback Training Systems, Morristown, N.J.