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3 Ways a Cannabis HRO Improves Internal Operations

Admin 12/1/21 9:00 AM

As someone in charge of your company's HR department, you're constantly pulled in different directions, helping new employees get their footing and ensuring compliance with your company policies. This takes time and focus away from your other HR responsibilities.

Particularly in the growing cannabis industry, you must have as much time as possible to improve clarity and remain compliant with ever-changing regulations.

Fortunately, you have options available to help you manage these duties. With human resources outsourcing (HRO), you can shift some of your HR burden to a trusted partner who can help your cannabusiness navigate its responsibilities.

What Is a Cannabis HRO?

An HRO works with you to manage complex and time-consuming HR tasks. Helping to reduce the costs associated with hiring a new, in-house HR employee, an HRO helps you save time and money by shouldering some of the HR burdens.

The services an HRO provides you will depend on your needs. Contrary to other types of HR outsourcing, you can pick and choose exactly what your cannabusiness needs to support your HR department.

HRO and Internal Operations

An HRO provides your company with tailored support services. They can scale these services to support your company's growth over time. A quality HRO will also provide you with best-in-class software to help you manage your company's HR needs. 

Unlike other HR outsourcing companies, an HRO does not come in and become the employer of record for your employees, reducing the confusion associated with some HR outsourcing solutions. You retain full control and authority over your business operations and your HRO supports you in every way.

Employee Ownership

Certain HR outsourcing companies enter into a co-employment relationship with their client companies. This results in your employees being paid by your HR outsourcing provider and, for all legal purposes, being an employee of the HR company. This causes confusion among employees and concerns among business leaders.

An HRO is entirely different. You are simply outsourcing some HR responsibilities while maintaining full oversight of your team.

However, just because you don't enter into a co-employment relationship with an HRO doesn't mean you miss out on some of the benefits associated with co-employment. A co-employment relationship may mean that your HR partner can provide your company with additional benefits, like healthcare, that you may not otherwise be able to provide on your own.

HROs give you support when you need it. By giving you assistance with healthcare options, payroll, compliance, and more, you have more time to focus on core business tasks. An HRO will also help your employees understand their healthcare options, discuss the plans with them, and help get their plans set up. Best of all, your HRO partner will also help you manage the payroll deductions to ensure that all premiums are covered and no one's healthcare is in jeopardy.


As a member of the cannabusiness industry, you know all too well the struggles with banking in an industry that is heavily regulated and sells a product that is still illegal at the federal level. Because of all those legal issues, most federal banks will not hold your company's money, making it challenging to run payroll.

An HRO helps you overcome these challenges. Your partner may have relationships with local banks that can help manage your accounts. Your HRO will also help you run your payroll, making sure that you're compliant with all federal, state, and local laws and taxes.

Even if your company has a large in-house HR team, you can still benefit from partnering with an HRO. One of the biggest benefits is outsourcing your payroll processing. A tedious, time-consuming, and legally challenging process, an HRO can ensure that your payroll is correct every single time. 

This has numerous benefits to your company beyond remaining compliant. Nearly half of all workers are just one paycheck away from poverty. Making sure that your employees get their paychecks on time and that they are correct will not only help them make ends meet but will also keep them loyal to your organization.

Compliance and Risk Management

Because the cannabis industry is so highly regulated and only fully legal in select states, it's absolutely crucial that your business remains compliant. Many federal and state cannabis laws are polar opposites, confusing even some of the most seasoned HR professionals. This is an area of your work where you should absolutely ask for help when you need it.

An HRO can provide you with that guidance and help you manage complex compliance issues. Your HRO can also manage your company's risk by working closely with you on your processes. The right HRO for your company will staff HR experts proficient in the cannabis industry who can help guide you and ensure you're compliant. 

But they won't completely take over your company or your processes. You still get the satisfaction of handling the work in-house. You simply have a trusted guide to help you manage the challenges faced by all cannabis industry businesses.

Teamployer May Be the Solution for You

Depending on your needs, an HRO might be just what your cannabusiness needs. Especially if you already have an in-house HR team, you don't need to fully outsource your HR to other providers. An HRO is a perfect complement to your internal HR staff, helping to guide them and ensure that they are taking the right steps. 

At Teamployer, we can help you figure out the exact solutions you need and provide them to your organization. We won't try to sell you services that you simply won't use. Our goal is to support your cannabusiness by offering guidance and assistance with complex HR issues, letting you stay focused on helping your company grow.

Contact Teamployer today to learn how we can support the HR needs of your cannabusiness.