Financial support and guidance will ease employee stress and help create a loyal and productive staff.
Matt Vance
As the cannabis industry continues to grow and evolve, business owners are recognizing the importance of investing in their most valuable asset: their employees. By creating a supportive work environment that prioritizes employee well-being, business leaders can foster loyalty and enhance productivity and overall company success. There are several ways cannabis business owners can effectively support their employees and provide financial comfort.
Competitive Compensation
Just like any other industry, the key to attracting, supporting, and retaining quality staff is to provide fair and competitive pay. Owners and operators should research their local market and offer wages that align not only with industry standards, but also the local cost of living. This type of attention demonstrates a commitment to valuing staff contributions and helps attract and retain top talent. It might seem difficult to offer higher salaries, but the payoff will be worth it in terms of company culture, employee dedication and devotion to the business and its success. High turnover and the added costs and time that training new employees entails (operational costs vs. retention) should be considered.
Offering comprehensive health insurance is another significant way to support cannabis industry employees. In an industry where workplace safety and compliance are critical to maintaining licenses and avoiding regulatory headaches, access to affordable healthcare gives employees peace of mind not just from a health standpoint, but also from the peace of mind that it provides from a financial standpoint. Again, this can be a major factor in staff satisfaction and retention.
Retirement Planning
While not all cannabis businesses may be able to offer extensive retirement plans, even small steps toward helping employees plan for their future can make a big difference. If feasible, the implementation of a 401(k) plan with matching employer contributions will prove long-term investment in employees’ financial well-being and help them build more secure futures.
The cannabis industry is also prone to struggles with financial literacy and management due to its relatively high percentage of younger employees, federal illegality, lingering stigma, and lack of banking access. Businesses can partner with organizations like Salal that offer financial education programs, budgeting classes, and workplace banking solutions. These initiatives can significantly reduce financial stress among employees, which in turn can boost productivity and job satisfaction. Research has shown that financially stressed employees are less productive. According to a 2023 PricewaterhouseCoopers survey, nearly 45 percent of U.S. employees who are concerned about their finances say it is a cause of distraction while they’re at work. By addressing financial insecurity through the above measures, cannabis businesses can potentially see significant improvements in employee focus and productivity.
Advocacy, Support, and Education
It’s important for business owners to advocate for employees both in and outside of the workplace. Businesses should stay informed about changes and developments in industry regulations and actively support policies that will benefit staff. For example, lobbying for improved banking access and supporting initiatives that destigmatize cannabis and cannabis industry employment.
Collaborating with financial institutions and organizations like Salal that understand the unique challenges of the cannabis industry can also provide valuable resources for employees. Ongoing education about industry trends, safety protocols, and career development opportunities show a commitment to employee growth. Internal safety nets like paid time off for personal development can also help employees feel more secure.
Supporting employees in the cannabis industry goes beyond basic compensation. By offering comprehensive benefits, financial education, and establishing a workplace culture of support and advocacy, cannabis companies can build a loyal and committed staff. Financially secure employees are good for business; they’re more engaged, more productive, and more likely to stay with the company over the long term.
Do you operate in the cannabis industry and need financial resources and support? Salal’s cannabis banking experts can guide you to the best options to help your business and your employees thrive. Reach out today.
