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.
Reason 1: Ease 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 a valid excuse when it comes to compliance.
Human capital management software helps you stay in compliance with the ever-changing legal landscape. From payroll audit trails to safe work day documentation, human capital management software has tools in place to ensure that your business can guard against workforce-related legal issues.
Reason 2: Hire and Retain The Best Employees
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 the hiring demands of an ever-expanding operation.
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 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?
A human capital management platform provides smarter and speedier recruiting, applicant tracking, as well as effortless onboarding, benefits administration, and HR management. This will ensure you get in front of the right applicants and you can get them set up as quickly as possible.
Platforms that have a Learning Management component can house all your online training and employee certifications. This allows you to stay consistent with your training and know that your whole team has the skills and understanding to do their jobs - increasing employee engagement and overall support for your team.
Reason 3: Simplify 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 keep track of employee’s hours and pay them properly with data flowing seamlessly from the 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.
Reason 4: Increase Your Competitive Edge
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.
Reason 5: Grow Exponentially
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!