Employee Retention in Non-Traditional Industries: A Focus on Cannabis
By Staci Hegarty, M.Ed.
Employee retention is a growing challenge across many industries, but it’s particularly pressing in non-traditional sectors like cannabis. With the rapid growth and ever-evolving nature of the cannabis industry, businesses often find themselves facing high turnover rates. In fact, recent reports show that turnover in the cannabis sector can reach as high as 55%, a significant concern for companies striving to build strong, long-term teams. Turnover is having a significant impact on the bottom line. For example, if a dispensary has 10 employees making an average of $19 an hour, a 55% turnover rate can translate into an annual turnover cost of nearly $80,000.
But why is retention so difficult in industries like cannabis, and what can employers do to keep their best talent?
- The Nature of the Industry
Cannabis is still a relatively young industry, often operating in states with fluctuating regulations and a rapidly changing market. For many workers, this can mean job instability, limited growth opportunities, and challenges related to unclear career paths. Additionally, the stigma surrounding cannabis—despite growing acceptance—can also create barriers to retention for employees who might feel their career in the sector isn’t as secure or respected as in more traditional fields.
- Strategic Hiring and Onboarding
When faced with high turnover, it is tempting to simply get the position filled and put the employee too work as quickly as possible. Prioritizing thoughtful hiring and implementing a robust onboarding program is the first step to retaining employees. A longer onboarding process means that employees reach full productivity more than 30% faster than employees who are onboarded briefly or not at all. The repetitive cycle of onboarding and training new employees is not only costly but also time-consuming, diverting valuable resources from other critical business activities.
The lack of transfer of business best practices and tribal knowledge, often confined to the owner’s head, can hinder effective decision-making and customer focus. Maintaining continuity and preserving institutional knowledge are vital to sustaining growth and stability.
- The Importance of Company Culture
In industries like cannabis, a strong, inclusive company culture can make all the difference. Employees are more likely to stay when they feel valued, heard, and part of a mission they believe in. Cannabis companies that foster an environment of trust, transparency, and support are better positioned to build loyalty among their teams. Investing in employee engagement, regular feedback, and recognition can go a long way toward building this type of culture.
Investing in employee engagement is another critical factor. Regular feedback sessions help employees understand their performance and areas for improvement, while also giving them a platform to voice their ideas and concerns.
- Career Development and Growth Opportunities
In fast-growing sectors like cannabis, employees want to know they have room to grow. Offering clear career development paths, opportunities for advancement, and training programs can help employees feel invested in their long-term success. Companies that prioritize personal and professional growth—whether through mentorship, certifications, or leadership programs—tend to see higher retention rates.
- Competitive Compensation and Benefits
While passion for the product and the mission is important, employees still need competitive wages and benefits to stay engaged. Cannabis businesses must consider offering competitive compensation, flexible working conditions, and benefits like health insurance or retirement plans to keep their workforce motivated and satisfied. In a highly competitive job market, it’s essential to show employees that their contributions are valued.
In addition, recognition programs that celebrate achievements, both big and small, boost morale and motivation. When employees feel appreciated and acknowledged for their hard work, they are more likely to stay committed to the company.
- Work-Life Balance
With the demands of the cannabis industry, from harvests to compliance requirements, employees can easily experience burnout. Encouraging a healthy work-life balance is essential to preventing turnover. Flexible schedules, remote work options, and wellness programs can all play a key role in keeping employees happy and reducing stress.
Conclusion
In industries like cannabis, where the workforce is often young, passionate, and diverse, employee retention is both a challenge and an opportunity. By focusing on creating a positive, supportive culture, offering growth opportunities, and ensuring competitive compensation, cannabis businesses can not only reduce turnover but also foster loyalty and long-term success. In a competitive market, the best employees aren’t just looking for a job—they’re looking for a place where they can grow and thrive. It’s up to employers to provide that space.
Ultimately, investing in employee retention ensures the stability and growth of the business, creating a competitive edge in the market. Retaining good talent is essential because each employee’s contribution boosts productivity, fosters community, and improves the quality of services offered, leading to loyal, returning customers.
Envision RISE understands the unique challenges of the cannabis industry and will work to create employee retention strategies that translate into cost reduction, greater employee engagement, and a positive customer experience.
Visit our website at https://envisionrise.com.