Compensation: New vs. Established Industries
When comparing compensation in the cannabis industry, it's essential to recognize the differences between the relatively new cannabis market and more established industries. Each has unique characteristics that influence wages, benefits, and overall compensation structures.
The Cannabis Industry
The cannabis industry is rapidly expanding, with legalization spreading across various states and countries. However, it is still a new sector, and compensation is influenced by this early-stage status.
Key Characteristics:
Start-up Culture: Many cannabis businesses operate in a start-up mode, especially newer brands, cultivators, and retailers. Start-ups typically have limited budgets, so salaries might be lower compared to well-established industries. However, equity packages, bonuses, or performance-based compensation may be more common, providing potential for high rewards if the company succeeds.
Variable Compensation: The regulatory landscape is still evolving, and the financial health of companies can be volatile. As mentioned in our 2024 Industry Salary Guide, compensation can vary significantly by region, role, and size of the company. For example, a cannabis company operating in a state with a new legal market (like New York or New Jersey) might offer higher wages to attract talent due to high competition, whereas more mature markets (like California or Colorado) might offer more stable wages.
Non-Traditional Benefits: Some cannabis businesses are offering unconventional benefits to attract talent, such as flexible work schedules, cannabis-related perks (like product discounts), and involvement in industry advocacy.
Limited Access to Traditional Benefits: Many cannabis companies, especially small ones, have difficulty accessing traditional financial institutions, insurance, and employee benefits (such as 401(k) plans or health insurance) due to federal restrictions on cannabis. Larger, more established players have overcome some of these hurdles, but the lack of standardized benefits packages remains an issue.
High Demand for Specific Roles: Certain roles, such as master growers, extraction technicians, and regulatory compliance experts, command premium salaries due to their specialized knowledge and skills. These positions may offer wages that are competitive with or even exceed those in other industries.
Compensation Trends in the Cannabis Markets:
Entry-Level Roles (e.g., Budtender, Cultivation Assistant): $12–$20 per hour.
Mid-Level Roles (e.g., Store Manager, Marketing Manager): $45,000–$80,000 per year.
Specialized/Executive Roles (e.g., Cultivation Director, Compliance Officer, COO): $100,000–$250,000+ annually, often including stock options or profit-sharing.
As highlighted in our 2024 Industry Salary Guide*
Established Industries
In contrast, established industries like pharmaceuticals, manufacturing, retail, or agriculture have well-defined compensation structures based on decades of data and benchmarks. They tend to offer more predictable compensation packages, stable benefits, and a clearer career trajectory.
Key Characteristics:
Standardized Salaries and Benefits: Established industries typically offer predictable salary ranges based on experience, education, and geographic location. Benefits packages tend to include comprehensive health insurance, retirement plans, paid time off, and other traditional perks.
Stability in Employment and Compensation: Employees in established sectors benefit from more job security and stable compensation packages. Salaries and wages are often tied to industry-wide standards, collective bargaining agreements (in some cases), and economic conditions.
Clear Career Paths: Employees in mature industries have access to clear career progression models, with standard timelines for promotions, salary increases, and benefits adjustments based on tenure and performance.
More Accessible Benefits: Companies in established industries have better access to benefits like pension plans, 401(k) matching, and comprehensive health insurance, which may be more difficult for cannabis businesses to offer due to federal regulations and financial restrictions.
Compensation Trends in Established Markets:
Entry-Level Roles (e.g., Retail Associate, Manufacturing Line Worker): $15–$25 per hour.
Mid-Level Roles (e.g., Operations Manager, Marketing Director): $60,000–$120,000 per year.
Specialized/Executive Roles (e.g., Research Scientist, Plant Manager, CEO): $150,000–$500,000+ annually, with performance bonuses, stock options, or profit-sharing in large corporations.
Comparing Industries
Compensation in the cannabis industry reflects its status as a young, rapidly growing sector with high potential for reward but also higher risks and volatility. While established industries offer stable salaries, benefits, and clear career paths, cannabis companies often attract talent by offering potential equity, flexibility, and the excitement of being part of a new and expanding market. Compensation in cannabis will likely evolve as the industry matures, with more standardized benefits and salaries as regulations stabilize.
