For many entrepreneurs, the cannabis industry seems like a dream investment opportunity.
- The global cannabis market is expected to rise to $198 billion by 2028 at a compound annual growth rate of 32.04 percent.
- Cannabis consumers in the US are expected to grow at 4 percent per year through 2030.
- Fifty-five percent of current consumers use both medical and recreational marijuana.
- The cannabis industry is creating more than 280 new jobs every day.
Yet with job growth also comes fluctuations. Many employees may enter the business for personal reasons, only to leave again once they discover the demands of the job.
And that can put your cannabis business at risk if you aren’t prepared. High employee turnover is commonplace in retail. Staying secure through these fluctuations is difficult at best. It’s something cannabis management teams need to plan for. Have you?
What causes employee turnover?
Management often examines employee turnover to find better ways to avoid it. While people quit for a variety of reasons, they can usually be lumped into several categories:
- For more money or better benefits
- To grow in their careers
- For better life balance
- Because leadership is ineffective
This ultimately comes down to company culture. The more time you spend creating an organization with strong inner guidelines, the better fit each employee will be. Of course, this takes work, but it’s worth it. Reducing employee turnover impacts profitability.
Tips to reduce employee turnover
Growing a cannabis business sends you down a new path every day. While you might find it fun to focus on production or marketing, your employees will impact your bottom line the most. This is where you should spend your time.
Hire the right people
Employee turnover is often higher because you don’t have a solid plan in place for hiring. You need someone for customer service, so you bring someone in quickly to fill the void. Yet that can increase your risk if they aren’t well prepared and you don’t have the resources in place to train them. Spend more time on the recruitment phase. Create a strong onboarding program. This is the time to bring all employees into the process to ensure everyone you bring on is a good fit.
Monitor toxic employees
You know who they are. So does everyone else on your team. They’re also the most likely source to push your high achievers out of your business, and cause discord throughout the community. This is where you’ll have to watch behavior and notice small trends in how the team functions together. Whether it’s you or other management, listening can be your greatest shield. Stay on top of anything that appears out of place.
Pay attention to the numbers
Employee behavior can cause disruption in a variety of ways. Have you noticed a sudden change in company sales? Are profits down? Is product missing? This is where technology can point you in the right direction. Analytical tools can keep you up to date on the inner workings of your business. Watch trends. Notice anomalies. Ask questions.
Define your company culture
Company culture starts with a plan. It’s about clearly defining every role and system within your organization. Seat-of-your-pants won’t fly if you have dreams of growth and opportunity. Instead, it’s better to rely on partnerships that will help you clearly define each aspect of your business, its purpose, and how it strengthens your organization.
It’s becoming increasingly important for cannabis management teams to pay attention to how retention impacts business growth and the security of your business. If you’re looking to create a safe and secure environment for all who work with you, ask for help. It’s the best way to move forward.
For IT Strategy, Security and Compliance, or Help Desk Services, reach out to us at Cannabis Technology Partners 360-450-4759.