The cannabis industry is a rapidly growing market that faces unique challenges when it comes to human resources (HR) compliance. Failure to comply with state and local regulations can result in hefty fines, license revocation, and even criminal charges. With that said, HR can have a great impact on compliance in the cannabis industry by implementing the right strategies.
According to a report by the Society for Human Resource Management (SHRM), the cannabis industry faces many unique HR challenges, including attracting and retaining top talent, dealing with the stigma surrounding the industry, and ensuring compliance with state and federal regulations. Here are some intriguing statistics about the cannabis industry:
High turnover rates
The cannabis industry has one of the highest turnover rates of any industry, with an average turnover rate of 43%. This can be attributed to several factors, including the fast-paced nature of the industry and the lack of HR infrastructure in many companies.
Difficulty in finding qualified candidates
According to a survey conducted by the National Cannabis Industry Association (NCIA), 69% of cannabis companies report difficulty in finding qualified candidates. This is due in part to the stigma surrounding the industry, which can deter qualified candidates from applying for jobs in the industry.
Compliance concerns
Compliance is a significant concern for the cannabis industry, with 77% of cannabis companies citing compliance as their top concern, according to a survey by Green Flower Media. Failure to comply with state and local regulations can result in hefty fines, license revocation, and even criminal charges.
Lack of HR infrastructure
The cannabis industry is relatively new and lacks the HR infrastructure found in more established industries. According to a report by the National Association of Cannabis Businesses (NACB), only 44% of cannabis companies have a dedicated HR department. This can make it challenging to ensure compliance with state and federal regulations and attract and retain top talent.
So how can HR positively impact compliance in the cannabis industry? By implementing a comprehensive HR strategy that includes the following:
Robust training and development programs
Providing ongoing training and development programs can help ensure that employees stay up-to-date on state and federal regulations, company policies, and best practices. This can help mitigate compliance concerns and increase employee engagement and retention.
Compliance monitoring and audits
Regular compliance monitoring and audits can help identify areas of noncompliance early on, allowing for corrective action to be taken before any serious consequences occur. This can help to rid your organization of compliance concerns and build a strong reputation within the industry.
For regular regulatory updates, visit VensureHR’s legal update page.
Employee engagement and retention initiatives
Employee engagement and retention initiatives, such as career development opportunities and worker recognition programs, can help bolster your staff. This can be especially important in an industry with high turnover rates.
HR infrastructure development
Developing a robust HR infrastructure, including a dedicated HR department and policies and procedures that comply with state and federal regulations, can help ensure compliance and attract and retain top talent.
The cannabis industry faces unique HR challenges that require a comprehensive HR strategy to address. By implementing robust training and development programs, compliance monitoring and audits, employee engagement and retention initiatives, and HR infrastructure development, HR can positively impact compliance in the cannabis industry and ensure its long-term viability. For more help staying compliant in the cannabis industry, contact Greenleaf HR, the cannabis industry’s HR leader.
