MJstack’s team of cannabis business advisors are industry experts who offer free services to ensure you have the cannatech stack you need so your business can thrive.

For most new dispensary owners, the compliance and ever-changing regulatory environment of the cannabis industry is enough to make their heads spin. Add on top of that a function like human resources, which is very specific and has its own countless nuances and compliance issues, and it starts to seem so complicated that most owners push HR and benefits back as something to think about sometime down the road.

However, that complexity is exactly why cannabiz owners should invest in HR and benefits solutions early on. A solid HR and benefits program can also help you battle the low employee retention rates the cannabis industry sees, which can boost your bottom line. Early adoption of HR and benefits support helps streamline your business operations, attract the right talent, and set you up for success early on. And if you ever sell your company down the line, having a strong HR program legitimizes your business. As the young cannabis industry experiences exponential growth and starts maturing, the HR function is maturing alongside that. You’ll be glad to be on the front end of that trend.

Whether you’re preparing to open your dispensary soon or you have been in business for a few years, it’s always a good time to implement a solid HR and benefits program. 

Here are our top things to consider when considering a program for your dispensary.

Payroll & Compliance

With regulations constantly evolving, and considering how important it is to manage, report, and file taxes, every dispensary should have a cannabis-specific HR company or professional employee organization (PEO) partner who can advise you on proper payroll and compliance. They will keep you current on important regulations and tax codes that impact your cannabis operation, including nuances like how employees’ hours are taxed depending on their job duties. Cannabis-specific HR companies and PEOs have easy-to-implement solutions for direct deposit, online data management, and all the tax administration and reporting you need to remain in compliance without having to worry.

Health Insurance & Retirement

It’s no secret. The cannabis industry has a reputation as a poorly paying industry. Like any retail industry, this can lead to high employee turnover. Increasingly, dispensaries are looking to offer medical, dental, and vision insurance, alongside Health Savings Accounts and Flexible Savings Accounts. While private insurance can be costly, there are PEOs that let your small business buy into larger group plans that provide lower cost benefits. Access to 401k retirement savings plans is another benefit you could offer through an HR partner. Offering more comprehensive benefits packages can help you retain top talent and save time and money from constantly hiring and onboarding new employees.

Alternative Benefits

“As the job market continues to become more competitive it is even more important for companies to be an employer of choice by offering competitive wages, benefits, continued education and 401k.” -Brian Wall, Vice President of AdaptiveHR

For some small businesses, a comprehensive benefits program that includes insurance and retirement options might not be in the cards yet. There are other things you can do to retain employees until you get the point of offering those options. You can, of course, provide discounted products to your employees or reimburse them for the cost of getting their medical cannabis card. You can also create programs that incentivize high performers by providing swag and additional discounts on products. There is also marketing technology that lets employees get compensated when customers mention them in positive web reviews, incentivizing great performance. Prioritizing a solid onboarding process, PTO policy, and making pay as competitive as possible can reduce your employee turnover by 20-30%. Other options to consider include giving your team access to ongoing employee education on topics that boost their professional skills – from subjects like OSHA, safety, and compliance to leadership and customer service. 

Next Steps

We know it can be difficult – and overwhelming – to understand which services are best for your particular business’s needs. And many of the vendors you spend time researching may not be familiar with the nuances and needs of the cannabis industry. Making these decisions is hard unless you are partnering with someone to help you understand all of the various options. Here at MJstack, we provide consultations that are always 100% free of charge to you, to help you select the cannatech vendors that will make your job easier, not harder. 

We are industry veterans who have intimate knowledge of the essential technology solutions dispensaries need. We’ve spent countless hours vetting vendors, including those that provide HR and benefits solutions, so you can save valuable time. Schedule a free consultation with us today and let us simplify and streamline the vendor evaluation process for you. We’ll help you get set up with an HR and benefits program that keeps your operations and team running smoothly.