Equipping Cannabis Workers for Unpredictable Industry Changes
The cannabis industry is rapidly growing and evolving, and with it comes constant changes in regulations, consumer demands, and business models. As the industry faces expansion across new markets, legal adjustments, and increasing competition, one of the most pressing challenges for cannabis businesses is how to equip their workforce to handle these unpredictable changes.
Workers in the cannabis industry, like those in other sectors, are feeling the pressure of increased workloads, longer hours, and the strain of navigating complex regulatory frameworks. A recent study that interviewed over 4,000 workers across essential industries in the US, UK, and Australia revealed that many employees are experiencing decreased enthusiasm toward work, a growing sense of fatigue, and even a decline in resilience. In the cannabis sector, these issues are compounded by the unpredictability of the industry itself.
This article will explore how cannabis companies can better equip their workers for the challenges ahead by improving resilience, investing in training and technology, and creating a supportive work environment.
The Challenges Facing Cannabis Workers
The cannabis industry is unique in that it operates in a constantly shifting legal and regulatory environment. Businesses and workers alike must adapt to changes in state laws, federal restrictions, and market dynamics, making flexibility and resilience key qualities for success. However, as the industry grows, so too do the pressures on its workers.
Increased Workloads and Longer Hours
As the demand for cannabis products grows and new markets open up, cannabis companies are expanding their operations. However, this rapid expansion often leads to increased workloads for employees. The aforementioned research showed that 58% of workers report an increase in workloads, while 52% are working longer hours than before. In the cannabis industry, this can manifest in various ways—more products to cultivate, process, and sell; tighter production schedules; and an increasing need to stay compliant with ever-changing regulations.
For workers in cannabis cultivation facilities, this might mean longer shifts in growing, harvesting, and packaging plants. For retail workers in dispensaries, it could involve handling a higher volume of customers, managing complex point-of-sale systems, and staying up to date on product knowledge. Employees are also being asked to wear multiple hats, filling roles in compliance, marketing, and customer service, often with little formal training.
Declining Resilience
One of the key findings from the research is that resilience among workers is diminishing. Resilience refers to an employee’s ability to adapt to change, recover from setbacks, and remain effective in the face of challenges. In industries like cannabis, where unpredictability is the norm, resilience is crucial. Unfortunately, the study found that 17% of workers feel less resilient than they did last year, and this decline in resilience is particularly concerning in the fast-paced cannabis sector.
With the pressures of longer hours and increased workloads, employees are burning out faster. Decreased enthusiasm toward work, as reported by 54% of workers, leads to lower morale, decreased productivity, and a higher likelihood of cutting corners, which can have serious consequences in the highly regulated cannabis industry. Workers need to be mentally and emotionally prepared to handle the ups and downs of the business, but without proper support, their ability to stay resilient is faltering.
Regulatory Complexity
The cannabis industry operates under some of the most stringent and complex regulatory frameworks in the business world. Regulations can vary significantly from state to state, and federal laws still classify cannabis as an illegal substance, adding to the complexity. Compliance requires careful attention to detail, and the consequences of non-compliance can be severe, including fines, license revocations, and legal action.
For workers, keeping up with these regulations is a significant challenge. Whether it’s ensuring proper labeling and packaging of products, adhering to safety and security protocols, or managing inventory in compliance with state-mandated tracking systems, the regulatory burden on cannabis workers is heavy. When combined with increasing workloads and declining resilience, this complexity can lead to errors, inefficiencies, and increased stress among employees.
Talent Retention
The cannabis industry is in its infancy in many regions, and as a result, there is often a shortage of experienced talent. Companies are faced with the dual challenge of finding skilled workers and retaining them in a highly competitive job market. According to the research, 46% of workers are considering leaving their current roles for opportunities in other sectors, a statistic that should be alarming to cannabis businesses.
The fast pace of the industry and the difficulty in maintaining a work-life balance are driving employees to seek opportunities elsewhere, particularly in sectors that offer better working conditions or more stable regulatory environments. If cannabis companies cannot retain their top talent, they risk falling behind in the increasingly competitive market.
Best Practices for Equipping Cannabis Workers
To overcome these challenges, cannabis companies must take proactive steps to better equip their workers for the unpredictable nature of the industry. By investing in employee well-being, improving training and development, and leveraging technology, businesses can build a more resilient, productive, and satisfied workforce.
Prioritize Employee Well-Being
The foundation of any successful workforce is employee well-being. Companies must recognize the pressures their workers face and take steps to alleviate them. One of the most effective ways to support well-being is by offering flexible working options. As the study revealed, longer hours and heavier workloads are straining employees. By allowing workers to have more control over their schedules, businesses can reduce burnout and improve work-life balance.
In addition to flexible work arrangements, companies should invest in mental health support. Offering access to mental health resources, including counseling and wellness programs, can help employees cope with the stress and demands of the cannabis industry. Encouraging open communication and creating a supportive work culture where employees feel comfortable discussing their challenges can also contribute to better mental health outcomes.
Invest in Upskilling and Reskilling
One of the most important investments a cannabis company can make is in the ongoing development of its workforce. Given the industry’s rapid changes, employees need to be equipped with the skills and knowledge necessary to adapt. Offering training programs that focus on upskilling and reskilling workers will not only help them stay relevant in their current roles but will also prepare them for future changes in the industry.
For example, providing compliance training is crucial to ensure that employees understand the ever-changing regulations surrounding cannabis. Similarly, offering education on the latest cultivation techniques, retail management systems, or data analytics tools can empower workers to perform better in their jobs.
Upskilling also helps in employee retention. When workers feel that their employer is investing in their professional growth, they are more likely to stay with the company and contribute to its long-term success.
Embrace Technology to Streamline Operations
Another key recommendation from the research is the need for cannabis companies to embrace technology to streamline operations. The cannabis industry is inherently complex, with layers of compliance, inventory management, customer engagement, and financial reporting. Integrating technology solutions such as AI-driven tools, data analytics platforms, and automated compliance systems can significantly reduce the burden on employees and improve overall efficiency.
For instance, using AI to optimize supply chain management can help reduce the workload on employees by automating inventory tracking, demand forecasting, and order management. Similarly, leveraging advanced data analytics can provide insights into customer behavior, helping dispensaries make more informed decisions about product offerings and marketing strategies.
Automation is also crucial for compliance. Implementing tools that automate reporting to state regulators, track product shipments, and monitor security footage can save employees time and reduce the risk of human error. By reducing the manual workload and providing employees with access to real-time data, technology can help cannabis businesses become more agile and responsive to changes in the market.
Break Down Organizational Silos
Cannabis businesses often operate in silos, with different departments working independently and failing to communicate effectively. This fragmented approach can lead to inefficiencies, miscommunications, and compliance issues. For example, a lack of coordination between the compliance and operations teams can result in products being mislabeled or improperly tracked, leading to regulatory penalties.
To overcome this challenge, cannabis companies should focus on breaking down organizational silos and promoting collaboration across teams. One way to achieve this is by implementing integrated data management systems that allow different departments to access and share information in real time. These systems can improve data accuracy, enhance communication, and ensure that all teams are aligned on company goals.
By fostering a culture of collaboration, businesses can create a more cohesive and efficient workforce that is better equipped to handle the unpredictable nature of the cannabis industry.
Simplify Compliance Processes
Regulatory compliance is one of the biggest challenges in the cannabis industry, and as regulations continue to evolve, companies need to be proactive in streamlining their compliance processes. Simplifying regulatory compliance can alleviate some of the pressure on employees, allowing them to focus on core activities rather than getting bogged down in paperwork and complex procedures.
To simplify compliance, businesses should invest in compliance management software that automates reporting, tracks regulatory changes, and ensures that all necessary documentation is maintained. Additionally, creating clear, standardized protocols for compliance-related tasks can reduce confusion and errors among employees.
By making compliance more manageable, cannabis companies can reduce the risk of non-compliance while also improving employee productivity and satisfaction.
As the cannabis industry continues to grow and face new challenges, equipping workers to handle unpredictable changes is more important than ever. By prioritizing employee well-being, investing in training and development, embracing technology, fostering collaboration, and simplifying compliance processes, cannabis businesses can build a resilient workforce capable of thriving in a dynamic and evolving industry.
In a sector where the regulatory landscape can shift overnight, and consumer demands are constantly changing, the ability to adapt and remain agile is crucial. By implementing these best practices, cannabis companies can ensure that their workers are prepared to meet the challenges of today and the opportunities of tomorrow.