If you’ve worked in the cannabis industry, even for a short time, you’ve probably faced some unique challenges. We’ve heard countless stories of challenges spanning across all areas of cannabis businesses, including hiring and recruiting.
Finding the right employees can be harder in cannabis than in other industries due to the nature of the industry. If you are a leader in the cannabis space, know these 5 things to help you hire in the cannabis industry.
1 Unique companies mean unique roles
There’s no standard “way” of doing things in the cannabis industry. Regional cannabis regulations can vary drastically. Small startup dispensaries or processors, often with limited funds, almost all see varying day-to-day roles and responsibilities. Even a multi-state operator can operate much differently from state-to-state depending on the regulations. Until federal legislation occurs, cannabis companies are under the burden of roadblocks and risks that impede the ability to create “standard” operating practices including a standard organizational chat.
What does this mean for hiring managers? You need to be very clear on the exact responsibilities you’re hiring for within a role and find a person who fits your unique role. In the FlowerHire Advisors practice, we help companies craft the exact role they need to fit the unique needs of the company. Then our recruiters find the person who fits that exact role.
Connect with FlowerHire Advisors for help crafting your unique organizational chart.
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2 Know the importance of transferable skills and the DNA of a good cannabis hire
In the cannabis industry, some similar roles exist in other industries, and other roles are brand new and have never existed. But even the roles similar in other industries (i.e. accounting, marketing, manufacturing) have unique nuances that make the roles much different in the cannabis industry than any other industry. This means that transferrable skills are key.
Of course, many roles require hard skills. But without the right soft skills and transferable skills, there could be a better candidate than the one who has the strongest set of hard skills. This is why it’s critical to look at the whole person when assessing relevant skills. Keep an open mind. Sometimes personal qualities, cultural fit, and soft skills determine a candidate’s success with a company more than a candidate with the most desired hard skills or cannabis-industry experience.
When assessing a candidate’s relevant skills, keep in mind that flexibility, genuine enthusiasm, and scrappiness are strong predictors of long-term success in the cannabis industry.
3 Understand the state of the payscale in cannabis
In such an ever-changing market with varying types of businesses, compensation in cannabis is challenging. The same role may drastically vary in responsibility from one company to the next. Many variables affect compensation in cannabis including, funding, burn rate, pace of growth, and the state in which they are operating.
The role a candidate has before entering the cannabis industry could mean either a pay cut or a pay jump. For some, a pay cut is worth getting into a new and exciting industry that’s full of opportunity. If you’re on the fence, we want to reassure you, that there are a lot of growth opportunities. The trajectory toward advancement is far faster than in traditional industries.
And to further complicate things… Since cannabis is still federally illegal, the government does not track pay data. Currently, compensation reports are self-reported. But since FlowerHire has been placing senior-level and executive roles to hire in the cannabis industry since 2017, we collect our own data.
We’ve placed 1000+ people in cannabis in 100+ different job titles in 28+ states. With our data collection and experiences, we’ve compiled our recommendations on how to build a compensation plan that helps your company stay competitive. It’s best if you talk to a FlowerHire team member for individualized recommendations, but in the meantime, we’ve put together a guide to get you started.
View our Cannabis Comprehensive Compensation Guide for management and executive levels.
4 Examine access to capital and funding
With the rapid growth of the cannabis industry, a company may want to hire another person to accommodate the growth pace. And while it may be the ideal time for the company to hire another person, it may not have enough capital to cover another salary and onboarding costs. And since cannabis companies are under the burden of not yet being recognized as federally legal, they don’t yet have the option to borrow money from a national bank. Too often if they do find a bank that will lend, the interest rates are exceptionally high. This can create a detrimental ‘catch-22’ situation for a privately funded company simply attempting to hire another sales employee to increase revenue, but can’t get investments until revenue increases.
If you find yourself in this scenario, consider a 1099 employee or if another employee can cover the responsibilities until the company can afford a new hire.
5 Understand a job seeker’s hesitancy to work in a startup industry
The cannabis industry is essentially a startup industry, which means the industry can change a lot in several ways. It’s important for companies to understand some of the fears that might come up for a candidate so that hiring managers can have compassion and understanding of where a candidate is at the time of their interview.
Evolving regulations
And since the basis of the industry is based on a plant that’s still federally illegal, the regulations vary state-by-state. Importantly, since it’s such a new industry, the regulations continue to change and evolve. The continual evolution of regulations can lead to dramatic pivots in a company, even for a seemingly small change.
Employees may be expected to completely shift their responsibilities to accommodate a shift in the company. This requires candidates to be flexible. So it’s critical for hiring managers to find employees who are both capable of handling these types of shifts and have the desire to work in such an ever-changing environment. The reality is that many people want stability and consistency in their jobs. That’s another reason we encourage hiring managers to look for candidates who have the DNA of a cannabis hire.
Merger and acquisition (M&A)
Cannabis companies are at various stages of growth and M&A transactions occur more often in cannabis than in many other industries. Candidates may want to know more about the stability of a company to avoid future job loss. Strong candidates may think twice about the unpredictability levels in the industry, despite the upsides of growth and opportunity. If you’re interviewing a candidate who wants to stay at a company for 5 years or more, it’s important to set the expectation that the industry evolves and companies frequently get bought and sold.
Stigma
Statistics confirm that stigmas exist concerning cannabis, even as 88% of Americans say marijuana should be legal for medical or recreational use. Many qualified potential employees are interested in cannabis but may be wary of committing to working in the industry due to perceived stigmas. People fear what a cannabis job will look like on their resume and may also be concerned about what friends and family will think about them working in cannabis. Additionally, there are still some risks in joining an industry where the product is still federally illegal, such as the potential to affect getting a home or personal loan. And while the risk continues to decrease in some cases levels of risk do still exist.
Fortunately, many people can look past possible risks and see the enormous opportunity in front of them. We are, even though slowly, on the path to federal legalization. Regulations continue to loosen, and companies continue to emerge and grow. An interviewer can be key to helping a potential hire in the cannabis industry understand the incredible opportunity to get in early — and develop an expert skillset.
Learn how to build a cannabis employee retention strategy.
