Operating in the cannabis industry comes with enough regulatory and legal challenges, you don't need to pile HR duties on top of it. As a cannabusiness owner, you're already swamped with daily operational duties and keeping up to date on compliance. You know HR needs to be a focus, but you just don't have the time to commit.
Hiring a full-time employee might seem like a logical option, but that could get costly. And what if you make the wrong hiring decision? That compounds the frustration and the expense. Luckily, you have another option, one that doesn't tie you to a single employee but a team of experts that understands the cannabis industry.
What Is Outsourced Cannabis HR?
Outsourcing HR is a common way for small business owners to save money while still getting the HR support they need. Many choose to partner with a Professional Employer Organization (PEO) because of the comprehensive benefits these specific types of HR outsourcing companies can offer their clients.
But not every PEO understands the cannabis industry. As one of the most highly regulated and still federally illegal industries, you have numerous challenges on your hands relating to how you hire, pay, and provide benefits to your employees. While your employees work in the cannabis industry, that doesn't mean they don't want access to the same benefits and support as they may receive from another industry. It just means that you need to work with a PEO skilled in the cannabis industry.
How PEOs Can Save You Money
PEOs provide the most comprehensive HR outsourcing solution. As a business owner, you're always acutely aware of your budget and where you're spending money. Provided that you understand the advantages and disadvantages of a PEO, you can get a positive ROI on your investment.
Improved Talent Acquisition
Cannabusinesses deal with employee turnover just like any other business. When this turnover goes unchecked, it can cost your business money through time and expense on hiring a new employee, training them, and lost productivity while the job is open.
A cannabis PEO takes the time to help you hire the right talent the first time. Certain employees are attracted to the cannabis industry, so working to attract those candidates and giving them a stellar onboarding experience can make it more likely that they stick around and give you years of solid work performance. There's the added benefit that you avoid the costs associated with high levels of employee turnover.
Increased Employee Satisfaction
When you reduce your turnover, you can also increase employee satisfaction. Employees who feel supported are more engaged and more likely to remain with your organization. This is a problem all cannabusiness owners face, as the industry sees between 40 and 50% turnover in the first 60 days after a new employee joins the team.
One way that small businesses across all industries lose employees is by messing up payroll. While mistakes happen, missed or incorrect paychecks can mean an employee has to choose between bills to pay. Putting employees in this situation will make them more likely to leave.
With a PEO, however, you don't have to worry about payroll problems. A PEO becomes the employer of record for your employees, giving them the authority to manage and run payroll. This also allows your employees to receive their paychecks via direct deposit, something that not all cannabis companies can offer since federal banks will not deal with your money. This alone can set your company apart and give you a competitive advantage in the cannabis industry.
More compliance and regulation is not only frustrating and confusing, it's expensive. You need to have a trusted confidant who can help protect your business. With a cannabis PEO guiding you, you have the peace of mind that the HR experts you rely on will have your company's best interests in mind and will do everything to help you remain compliant.
Without that guidance, however, you risk severe compliance fines and penalties. If you're too busy to focus on a compliance issue or you have an in-house HR employee who doesn't know all of the rules and regulations, it can put your company at risk. Even innocent mistakes can result in costly fines and penalties. PEOs handle the compliance to help you avoid additional costs and keep your cannabusiness in operation.
Business Growth Initiatives
The best part about outsourcing HR to a partner you trust is that it frees up your mind, your time, and your energy so you can focus on your core business needs. When you stop worrying about HR and all the associated tasks, you have more time for business growth initiatives.
This is especially true as the cannabis industry enters its most fruitful years. As business owners have a chance to get ahead of the boom with more states legalizing the product, you can be ready to expand your business at a moment's notice, ready to get into a new market and increase your revenue.
These types of planning and preparation are only possible when you partner with a cannabis PEO. You need to trust that the compliance information you get is accurate so you can put your energy into growing your company. If you don't trust the information you receive, you won't be able to focus on growing your business.
Teamployer Is the Solution You Need
As a small cannabusiness owner, you have many duties and responsibilities that pull at your time and your company revenue. Before making any business decision, you always weigh your options and make sure you're getting the most bang for your buck. That's what keeps you profitable and makes your business thrive.
But the one area holding you back from being able to put all of your effort and energy into your core business needs is HR and compliance. With such a highly regulated industry, it's no wonder you haven't found the right trusted partner.
Until now. At Teamployer, we bring a fresh approach to cannabis payroll and HR by providing you with true white-glove service and technology that helps your business grow and remain compliant. Check us out today to see the Teamployer difference.