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with customers who might not be as
knowledgeable. ... You really need that
base of retail experience, wherever it
might come from, " Wells said.
Compensation and Promotions
" Compensation is always a really tough
area, because you want to pay your
employees enough to excite them and
retain them, " Bradford said. " But you
also want to make sure that you're able
to pay your bills. "
The typical method for setting a
pay scale is to assess what other
local retailers are paying. Some
jurisdictions such as Colorado require
job postings to list compensation
ranges. But compensation data can
be obtained from job websites such
as Indeed and Glassdoor.
" Then, maybe go up a little bit to
offer a premium, especially if you're in
a state or municipality that does not
allow tips, " Bradford suggests.
Recruitment agencies also collect
their own compensation data,
McMahon said.
But setting compensation isn't
a one-time exercise: Raises and
promotions can help retain those hardearned
workers over time.
" I think that what makes a lot of
sense is to structure a few steps within
each role, " McMahon said.
For example, the hourly wage for a
budtender could be increased over
time to a maximum rate based on the
number of hours worked and their
performance. " I think giving employees
some line of sight on how they can get
raises is important, " she advised.
McMahon points out that raises
and promotions can be challenging
for some retailers, since there aren't
always many positions above the basic
front-line roles.
Viridian's Bradford said that small
retail operations will likely limit
an employee's upward mobility.
" Unfortunately, those companies
often lose those people to larger
companies, " she said.
Still, Bradford said vertically
with a record for nonviolent cannabis
integrated marijuana companies might
be able to offer more room for growth,
moving promoted retail workers over to
another area of the business such as
cultivation or manufacturing.
At vertically integrated Cresco Labs,
Wells said, employees undergo a
formal review process every year.
" It's the front-line managers who are
responsible for rating their employees
and coming back with consideration
for (salary) increases, " he explained.
" Of course, our flat rates do change
over time, just from a cost-of-living
perspective. As cost of living goes up,
so does the need for compensation for
your employees. "
Background Checks
Local laws and regulations could
require background checks for
prospective cannabis store employees.
Bradford points out that some
jurisdictions such as California actually
prohibit criminal background checks
until a conditional employment offer
has been made.
That complication highlights the
usefulness of a professional humanresources
practitioner-or at least an
outsourced HR service, she said. " From
a best-practice standpoint, I would
say most companies do background
checks, " she said.
Making an offer of employment
before conducting a criminalbackground
check can bring
advantages, Bradford said.
" Specifically in cannabis, there are
a lot of people who, unfairly, have
records of some sort or another
because of cannabis, " she said.
" It's better to make sure that you're
hiring them because they can perform
those job duties, and then making
them the offer and then doing the
background check. "
Cresco Labs' Wells said the company
runs background checks in most states
where it operates, but it doesn't pass
up the opportunity to hire someone
offenses.
" We look for folks who have had
those negative experiences with the
war on drugs, and we try to find a way
to hire those folks, " he said.
Treating Applicants With Respect
Throughout the application and
interview process, advised Viridian's
Bradford, it's important to remember
that even unhired applicants can
become loyal customers.
" By having a great interview process
and standardized hiring process in
place, it could mean the difference
between (getting and) keeping a customer
... or them going down the street
somewhere else because they had a
bad interview experience with you. "
Cresco's Wells similarly advises any
cannabis retailer just starting their
hiring process to " treat people with
respect. "
" Always remember to follow up
with people. If you're not going to hire
somebody for whatever reason ... you
always have to let them know, " he said.
" Word gets out very quickly if you don't
treat candidates with respect. You have
to tell them no when it's a no, and you
have to tell them why. "
Wells also advises keeping social
equity in mind throughout the hiring
process, particularly in light of the
harms caused by the war on drugs.
" As a cannabis company, if you're
not focused on diversity, equity and
inclusion and providing the right
culture for your organization and
putting the right people in front of your
customers and your patients who have
diverse backgrounds, I think you're
doing yourself and the industry itself a
disservice. "
Solomon Israel is a
reporter for Marijuana
Business Magazine and
MJBizDaily. You can reach
him at solomon.israel@
mjbizdaily.com.
April 2021 | mjbizdaily.com 69
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