How to Reduce Employee Turnover in the Cannabis Industry
According to a report by analytics company Headset, a significant 44% of budtenders tend to leave their positions within the very first year of employment, and an additional 15% follow suit in the subsequent year. The report also highlights a startling trend where nearly 60% of entry-level cannabis employees exit within their initial two months of employment. These statistics are not only concerning but also bear a tangible financial consequence to your cannabis company.
The financial repercussions of losing an employee are substantial, averaging 6-9 months' worth of their salary to find a suitable replacement. However, the consequences extend beyond the fiscal realm. When a valuable team member quits, it can trigger a cascade of issues, including lowered morale and a potential bottleneck in your operations. Hence, focusing on retaining your cannabis workforce is key to nurturing a high-performing, contented team.
To forge a productive and harmonious work environment, we advocate for a people-first approach. Here are the top six strategies for cannabis industry employee retention that have proven to be highly effective:
1. Exit Interviews for Insightful Adaptation:
Initiating changes based on exit interviews is the initial stride toward enhancing employee retention in the cannabis industry. Exit interviews provide invaluable insights into an employee's perspective on their role, management, and the organization as a whole.
Key questions to ask during these interviews include:
Why did you decide to leave our cannabis company?
How do you perceive our management?
Do you have recommendations for improvement?
What criteria guided your selection of a new employer?
Did you feel adequately trained and developed during your tenure here?
Additionally, “Stay-Interviews,” where you engage with high-performing employees to assess what's working and what needs enhancement, are equally pivotal. Acting on insights from these interviews can bolster your efforts to retain your top cannabis talents.
2. Fostering Work-Life Balance:
Employee retention and work-life balance are inextricably linked, making it one of the most potent strategies in the cannabis industry. Many cannabis employees cite work-life balance as a decisive factor in their job satisfaction. However, mere mentions of this concept in meetings won't suffice.
Work-life balance can manifest in various ways, including flexible scheduling, remote work opportunities, shorter workdays, and even enforcing a cutoff time for work-related communications. By respecting your employees' time away from work, you can cultivate a healthier working relationship, resulting in greater on-the-job productivity.
3. Competitive Compensation and Appealing Perks:
Offering competitive salaries that commensurate with job responsibilities is an absolute must. Fair compensation is arguably the most vital aspect of employee retention. Employees who feel underpaid are more likely to seek greener pastures (no pun intended).
Providing an attractive perks package can significantly enhance morale and productivity. Flexible schedules, remote work options, wellness stipends, and professional development opportunities are just a few enticing perks to consider. Don't hesitate to think outside the box; solicit employee feedback to identify the perks that resonate most with your workforce. Pizza lunches don’t cut it anymore.
4. Combating Burnout with a Blended Workforce:
The cannabis industry's dynamic nature can sometimes lead to employee burnout. Zippia reported an alarming 77% of employees experienced burnout in their current roles, while 70% believed their employers weren’t doing enough to mitigate it.
One effective countermeasure is adopting a blended workforce. Temp employees can be invaluable during peak demand or for special projects, offering flexible schedules without the need for extensive onboarding. Their presence can be a lifeline during busy periods, minimizing the need to replace full-time employees suffering from burnout.
5. Invest in Training and Development:
Investing in employee training and development is a surefire means to bolster retention in the cannabis industry. By upskilling your workforce, you not only enhance your business's efficiency but also demonstrate your commitment to employee growth.
Consider providing tuition reimbursement for training, seminars, continuing education, and certification courses. Engaging expert consultants can also be advantageous for mentorship and specialized skill development, ultimately nurturing your employees into leaders.
6. Recognize and Reward Your Cannabis Heroes:
An article by Jimmy Chebat determined a staggering 79% of employees who resign cited a lack of appreciation as a significant factor in their decision. Recognizing your employees' contributions is a straightforward yet potent means to boost retention.
When you show appreciation, you activate the brain's stress control centre and elevate dopamine levels, promoting happiness and, subsequently, heightened work performance. Recognition can take various forms, such as specific praise during meetings, dedicated staff appreciation days, thank-you emails, and meaningful involvement in decision-making processes.
Complementing recognition with personalized rewards can amplify the impact. Align rewards with goals and pair them with heartfelt acknowledgments. Creative and personal rewards, from paid happy hours to gift cards, can go a long way in motivating and retaining your valuable cannabis staff.
If your cannabis company seeks to enhance employee retention, we stand ready to assist. Explore how our recruitment services and expert consultants can fortify your team, preventing staff burnout and supporting long-term success. Reach out to us today for a bespoke approach to elevate your employee retention strategies in the dynamic world of cannabis.
