2020 is nearly here and with unemployment holding steady at a low 3.6%, HR departments nationwide will continue to face many of the same challenges that have plagued them this past year, specifically recruitment and retention as there are more jobs than workers. While these challenges won’t escape the cannabis industry, its HR departments will also have to deal with other issues distinctly unique to them, like changing laws and payroll, which is why finding a trusted partner should be first on the to-do list for the new year.
4 HR Challenges the Cannabis Industry Faces
1. Finding Quality Candidates
Cannabis companies will need to focus their HR efforts on filing their ever-expanding roles. The cannabis industry is quickly growing and adding more jobs. As of earlier this year, it was estimated the industry posted 300,000 jobs.
With so many positions to fill, HR managers must be sure recruitment is not only continual, but compliance is kept. Because the cannabis industry is so young, many companies may choose to outsource their hiring or have another department fill the role. According to the Cannabis Business Times, HR professionals see job postings that are discriminatory and set the company up for a lawsuit by asking for young and energetic workers.
An ATS can craft help wanted listings by automating the process while ensuring compliance. Plus, finding candidates is simplified as it can also integrate with hundreds of job boards and social media.
2. Paying Employees
The cannabis industry’s relationship with banking has its own set of challenges. Marijuana is a federal Schedule I controlled substance and many national banks don’t want to get involved with legal cannabis businesses. Since finding banking options is a hurdle, many cannabis businesses choose to pay their employees in cash. But paying employees in cash has its own set of risks, like security concerns and incorrect tax filings and exposure to IRS penalties.
The cannabis industry needs a payroll solution that works for the industry and ensures all payments and taxes are correct.
3. Retaining Employees
As the cannabis industry grows, it will be imperative for HR managers to retain the employees they have because they’ll be working hard to keep filing new roles. In 2018, the industry added 64,000 jobs and is expected to create another 20,000 jobs this year in California and Florida.
Retaining cannabis industry employees is the same as any other industry. Employees want to feel appreciated and that they have a future with your company. Tracking performance, offering training courses, certifications and mapping out succession plans can all work to keep employees engaged and retained.
4. Legal Issues
The cannabis industry is facing a whole host of legal issues from access to banking services to fairness in taxation to legality on the federal level. Staying ahead of the changing laws is paramount as future laws will affect employee issues like cannabis use on the job and worker compensation claims. Affordable, available legal counsel, like myHRcounsel, can help companies in the cannabis industry navigate the rapidly-changing legalities surrounding marijuana in their state and nationwide.
Arcoro has invested the time and funds into learning all about the challenges that face the cannabis industry. Our HR software for the cannabis industry can help cannabis companies find qualified applicants, onboard employees, track performance and stay compliant. Plus we offer legal counsel whenever you need it.