By Dan Walter, FutureSense LLC
Everyone wants to know how much to pay people (or how much to get paid.) In a world of instantly accessible google searches, it can be maddening that pay data for the cannabis industry is hard to find. Even when you locate information, it probably isn’t compelling (or legally compliant). What’s the problem and how do we fix it?
Here are the most basic rules:
FTC regulations require the information provided by survey participants (companies) to be based on data more than three months old. Actionable survey data can only be supplied for positions with more than five respondents. No individual participant’s data can represent more than 25 percent on a weighted basis of the reported statistic.
Any data that does not meet these minimum requirements is interesting but is unlikely to provide a solid foundation (or a legal defense). Data collected directly from employees or talent searches are almost always non-compliant.
Actionable survey data will also give you ranges for each position. At the very least, usable survey data will provide statistically relevant minimums, midpoints, and maximums for each position. More comprehensive data will usually provide quartiles or percentiles for each job. To be blunt. Median numbers are the playground of thin data. If all you see is a median, you are probably looking at data that isn’t actionable. The median may be interesting, but it isn’t much more than that.
Many providers in the cannabis industry have spent their time and money trying to help companies with better pay data. Some of the data is accurate, and some are not. Some of the data meets legal requirements, and some are just fun to have. How should a company decide which data is actionable and which is only interesting? The paragraphs above provide some insight into assessing the information out there. NCIA and FutureSense are working diligently to augment that information with a data set that respects the breadth and depth of the cannabis industry (truly an industry of industries).
This is what makes your participation in the 2019 NCIA Cannabis Compensation Study, powered by FutureSense, so important. We have executed pay surveys for decades. Our goal is to provide actionable data for every position in the cannabis industry. Your participation is crucial! Participation is simple, FutureSense does most of the work. Also, many of the industry HR, Recruiting, and Accounting service providers are already set up to submit your data quickly.
Contact us today, or contact your service provider and ask them to collaborate for you! We will update this post as new providers get on board.