The newfound legal status and economic mobility of cannabis has made it a multi billion-dollar industry. In fact, regulated marijuana sales in North America are projected to increase to 21.6 billion dollars by 2021, marking a 26% annual growth rate since 2016.
Perhaps that is why many cannabis professionals are seeking a human capital management (HCM) solution to solve their workforce issues. Compliance difficulties with state-specific laws, federal legislation, the IRS, and the Financial Crimes Enforcement Network (FinCEN)- as well as operational stresses related to payroll, hiring, and workforce management- require solutions that can keep up with your trailblazing business.
Still looking for clarity on how HCM can transform your business operations? Human capital management may be your number one safeguard and benefactor in navigating the new and ever-changing cannabis landscape. Here are the top five reasons your cannabis business needs a human capital management solution.
Eases Regulation and Compliance Difficulties
HCM systems are designed specifically with your industry in mind. Regulations vary greatly for each legalized state, and even those rules can be misinterpreted and ambiguous. Some states allow up to 12 months for businesses to learn and adapt to new regulations, but that grace period does not last long and is not guaranteed. Once those 12 months end, the audits, fines, licenses, and compliance cases begin. Ignorance is not an option if you want to keep a competitive seat.
Human capital management software also provides compliance monitorization, real-time ad-hoc reports, transparency into product and workforce regulation, and effortless record-keeping so there’s no room for human error. New court cases and legislation are occurring more and more frequently nowadays. Let technology make sure you are informed and prepared to manage accordingly!
Hiring and Talent Retention
Hiring in an industry with a 60% turnover rate makes for even more challenges. Obstacles like rigorous background checks, state-mandated prerequisites for hires, and other elements ensure that only the most qualified are managing your facilities- but they also make it difficult to meet expanding operation demands.
Employee dissatisfaction is also a growing struggle because employers are often too consumed with regulatory compliance and scouring job boards to fully engage, train, and support the experience of the employees they already have. The number of job listings around legal cannabis has grown by 690% from January 1, 2017 to August 1, 2018 according to Vangst’s “Guide to Hiring Competitively in the Cannabis Industry”. So what’s the solution?
HCM provides smarter and speedier recruiting, applicant tracking, as well as effortless onboarding, benefits administration, and HR management around payroll, time and labor management, tax and garnishment accuracy, and more- all automated and available from any device.
Ensuring you’ve got a competitive edge for finding and keeping top talent starts and ends with powerful administration. HCM helps you maintain the best workforce possible.
Simplifies Payroll for Hourly, Distributed Workforce
Legalized cannabis operations in the U.S., regardless of whether you are a grower or distributor, usually employ an hourly, distributed workforce. That workforce, especially if participating in cannabis’ industrialized agriculture, isn’t always centrally located either. With 36% of cultivation operations having more than one facility/grow site, payroll- let’s face it- is a bit of a nightmare.
With a unified human capital management system, however, it’s easy to track employee’s hours and pay them properly with data flowing seamlessly from time and attendance through pay rule engines and onto payroll. Workforce dashboards, customized reporting, complex pay rules, and other superior methods further ensure accuracy for every step of your management needs. Plus, you’ll save money on administrative services and time theft. It’s a win-win all around.
Competition Between Cannabis Businesses
The first way to succeed in business is, of course, to have a product that is better than the rest. However, operational efficiency becomes the next component in gaining a competitive advantage. Your workforce is one of your largest costs- and one of your most important assets in this regard.
Eliminating wasted effort, minimizing administrative workloads, and keeping employees happy and engaged are important ways to remain competitive. HCM solutions don’t just guarentee employees are fulfilling their roles in your company, but that they have everything they need to grow and prosper as well. Certain HCM’s include orientation or training programs and self-service administration options to encourage employees to feel valued, in control, and ready for anything.
As your business grows, basic and necessary tasks cannot fall to the wayside. Your company's development requires powerful tools that can be scaled as your head count grows. HCMs save money and relieve worries that details or compliance may be slipping through the cracks.
You deserve to focus on projecting your business forward, instead of stressing about regulatory rules day in and day out. HCMs can help you tackle these issues, so employee and customer satisfaction can return to center stage once more.
EPAY Systems is taking on the cannabis industry challenges with its all-in-one, customizable HCM. Built with the complex hourly workforce in mind, we know we’ve got everything it takes to keep you compliant and sailing on smooth waters. Request a demonstration today!