Date: March 28, 2024

‍

The cannabis industry is facing a costly problem that needs to be addressed: employee turnover. According to The National Cannabis Industry Association, the turnover rate within the first two months of employment in cannabis operations ranges from an astounding 40% to 60%. This issue not only incurs substantial financial costs but also impacts the consistent quality required to produce exceptional cannabis products.

The costs of turnover can escalate to between one half to two times an employee's salary, depending on their level of seniority, the financial burden on cannabis operations can be substantial, with estimates ranging from $1,500 per hourly worker to up to 213% of a C-suite executive's salary. This underlines a critical need for a solution to mitigate these challenges effectively.

Understanding the problem

The root causes of employee turnover in the cannabis industry are multifaceted, with poor leadership communication and insufficient career development opportunities at the forefront. Jason Desentz, Managing Partner at FlowerHire, highlights these as primary reasons for the high turnover rates, indicating that employees in the cannabis sector are not just motivated by personal interests but also seek professional development and growth opportunities.

“Employees come to cannabis mostly for personal reasons but they are still looking to be developed and trained toward there current role and future advancement.  We are also seeing poor leadership development and training which is another reason for high turn over.” - Jason Desentz, Managing Partner at FlowerHire

The Cost of Turnover and Training

The financial cost of employee turnover extends beyond the direct costs of replacing a worker. Indirect costs such as lost productivity, overburdened remaining staff, and the degradation of service or product quality can further worsen the financial strain on cannabis operations. On the other hand, the cost of training a new employee, while significant, is an investment in the stability and quality of the operation.

Benefits of Effective Training

Implementing an effective training program can serve as a crucial strategy to reduce the high turnover rate. Training can bridge the knowledge gap, ensuring that employees are well-versed in high-quality techniques and processes necessary for cultivating great cannabis products. Plus, effective training can enhance employee retention by fostering long-term trust and satisfaction, transforming a potentially frustrated employee into a committed and engaged member of the team.

Implementing a Robust Training Program

A robust training program should include the development of technical skills, understanding of compliance and software tools, and development of leadership and communication abilities. Measuring the success of a training program is essential to ensure its effectiveness and should include metrics such as reduced turnover rates, improved productivity, and enhanced product quality.

The Role of Data in Employee Transition

Data and logs play a pivotal role in the onboarding and continuous training of employees. They act as a repository of collective knowledge, detailing things such as the specific care requirements of different cannabis strains. This information is key for new employees who need to quickly adapt, ensuring continuity in cultivation practices and maintaining the high-quality standards expected in the cannabis industry.

Enhancing Training and Onboarding with Canix

Operators using a software like Canix have a useful tool to help address the challenges of employee turnover and training. With features such as labor tracking, historical data access, task management, simplified training processes, knowledge transfer, workflow and compliance management, admin controls, and SOP storage, Canix can help to streamline the onboarding and training process. This not only reduces the time and cost associated with training new employees but also enhances the overall efficiency and productivity of cannabis operations.

• Labor Tracking & Task Management: Streamline workflow efficiency and reduce errors with intuitive task management. Canix enables teams to track labor costs effectively and manage tasks by automating updates for recurring inventory actions, minimizing the risk of referencing outdated inventory and reducing user errors.
• Historical Data Access & SOP Storage: Ensure continuity and consistency in cultivation practices with easy access to historical data and Standard Operating Procedures (SOPs). This repository of collective knowledge assists new employees in quickly adapting to the specific requirements of different cannabis strains, maintaining high-quality standards across the board.
• Admin Controls: Implement granular permissions to safeguard your operations. With Canix, you can ensure critical reviews are conducted before submissions, and restrict access for new users to prevent unauthorized actions, enhancing security and compliance.
• Comprehensive Training Resources: Benefit from Canix's extensive library of training materials, including recorded onboarding sessions, instructional videos on Canix’s YouTube channel, and detailed guides in the Help Center. These resources allow new employees to familiarize themselves with essential procedures and best practices even before they start, accelerating the learning curve and improving productivity.

By utilizing Canix's advanced features, cannabis businesses can not only reduce the time and costs associated with training new employees but also significantly improve operational efficiency and productivity. This strategic approach to employee training and onboarding positions Canix as an indispensable tool for combating the high turnover rates and training challenges in the cannabis industry.