Member Blog: Are You Practicing Your A, B, R’s? Yes, “R.”
by John Serrantino, co-founder and Chief Strategy Officer of EzHire Cannabis
Why it is critical to “Always Be Recruiting” in the cannabis industry and how to do it.
The cannabis industry is primed for unprecedented growth in the coming months. Today posting a job can yield thousands of candidates in a matter of hours. In the post we will discuss why this may not be the blessing it appears and how businesses can adapt to handle the influx of talent coming into the cannabis industry.
It seems like everyone wants to work in cannabis these days. With the retail industry experiencing damage that has accelerated its demise, a more diverse candidate set is flocking to cannabis as the industry continues to grow. At EzHire Cannabis, a talent engagement platform, we have identified three distinct buckets of candidates:
Retail Refugees – these are candidates with extensive experience in a retail setting, including middle and upper management. This pool of candidates is short on cannabis experience but seasoned when it comes to creating a retail customer experience.
Silicon Valley meets cannabis – when it comes to the evolving needs of cannabis, technical knowledge is at a premium. IT support is necessary as digital storefronts become vital. Digital marketing & communication, particularly to maintain business-to-business relationships, has become a priority over face-to-face interactions.
Advancing from within – as new markets open the talent from more established markets is proving willing to relocate. Finding this type of talent isn’t easy but it can be critical when starting a cannabis operation in a new market where industry experience is near impossible to source locally.
Cannabis Talent is Building
The legal cannabis market currently employs nearly 300,000 people with exponential growth expected in the coming years. That means there are a lot of prospective candidates with real experience. Unfortunately, there are three core problems that hinder your hiring efforts:
Those experienced professionals aren’t always actively looking for jobs
Experienced candidates aren’t always located in your backyard
Your competitors may be able to lure these candidates to their business before you
In the 1992 film Glengarry Glen Ross, Blake, an aggressive big city salesman played by Alec Baldwin, introduces a sales team to the “Always Be Closing” mentality to drive business. While this advice hasn’t really aged well for sales, when it comes to staffing your business, it is applicable. Best practice dictates the need to “Always Be Recruiting.” This practice, known more commonly as active recruiting, involves networking with those already in the industry to improve your reach and visibility to those prospective candidates.
Best Practices for Finding Talent
The most common methods of active recruiting involve:
Attending industry networking events – virtual or otherwise these are a great way to get face time with a mix of industry professionals.
Leveraging Technology – as the stigma around working in the industry fades, top talent has migrated to LinkedIn. A smart business owner or hiring manager will build a strong network via the platform.
Monitor industry trends nationwide and share that knowledge – if you’ve built a strong social network, you’ll want to keep them educated. This helps engage the right people for your business.
Balancing Priorities While Getting Results
While it can feel like a lot of work to constantly be recruiting, the benefits far outweigh the time investment in the long run. Take for example the way an experienced hire, be it in retail or lab testing, is able to come in and “get stuff done” with limited onboarding and handholding. Most businesses find those candidates primarily need training on protocols and processes specific to the business rather than a full background in the industry which can be time-consuming and expensive.
Hiring Managers have consistently expressed feeling overwhelmed by the sheer amount of applicants they receive when they post for a position. They simply do not have time to sort through thousands of resumes to find the diamonds – and resumes often do not tell the full story, requiring a phone screen and in-person interviews to really get to know whether the applicant is a fit.
Fortunately, within the industry, there are a number of ways to streamline these motions. In fact, this post offers insight into some of the ways you can work toward securing top talent. Bringing on a new employee is an investment you are making in your business, taking the steps outlined above serves as a great way to make sure you are getting the highest probability of a return on that investment.
Happy Hiring!
John Serrantino is the co-founder and Chief Strategy Officer of EzHire Cannabis. EzHire Cannabis offers technology forward solutions for business owners and hiring managers to enable their growth. Founded in 2017, originally as Fortuna Business Solutions, EzHire represents the first talent engagement platform for the cannabis industry. Prior to joining EzHire, John was an early-stage employee at multiple successful startups including as Director of Sales for Seattle-based CRM, PipelineDeals and Director of Client Services at Philadelphia-based remindermedia. John and his wife Sarah reside in the Tampa Bay area and are active in the animal rescue community.
Member Blog: Suggestions For Cannabis Economy Leaders As We Navigate the COVID-19 Crisis
As COVID-19 swept across the globe, shutting down countries, there was an unexpected side effect taking place in the cannabis economy. Many cannabis companies that may have made hiring or operational errors have used the pandemic as an opportunity for correction even as they are staying open and deemed an essential service. Companies who over-hired based on “what if” scenarios of possible growth have used this to exit or furlough unexpecting employees with little to no explanation why.
Working in the cannabis executive recruitment space for several years (and being in the people business for decades), this is heartbreaking to see and hear. New hires should be based on new and real business needs grounded in data and facts instead of staffing up because a company is hoping for amazing growth. Companies using this pandemic as a correction must be more transparent and human in their actions. Acknowledge and realize some employees are losing their jobs (sometimes after stellar performance reviews) with little to no severance and little explanation. However, we all can learn from this experience and make some changes to how we operate moving forward.
Treat people as you would like to be treated.
The impact of a bad employee exit has a trickle-down effect. There’s a lot more good to come from understanding that former employees, along with their family members, friends, and colleagues, are all potential consumers, investors, and future employees. The (relative) smallness of our cannabis economy should be further inspiration to behave accordingly towards others during this time of crisis. When an employee is let go in an unprofessional manner, it impacts the morale of those employees who are still with the company. Relationships matter. We’re not saying that there isn’t a need to let people go and make organizational changes; you’re still running a business. Look for ways to make an unpleasant experience more positive. Furlough some people instead of flat out laying them off, and then communicate a lot with them during the time they spend in that holding pattern for you. Evaluate performance over salary when deciding on cutbacks. Consider bringing in an Industrial Psychologist to speak with your remaining employees who are probably suffering emotionally and thinking they’re next on the chopping block. Offer more perks to show that you care. Reach out to those individuals who are no longer with the company and see how they’re doing. Offer to pay for resume writing services or actively connect them to career support services or recruiters.
Invest in a strategic HR or Human Capital position.
You need a dedicated strategic HR leader in your organization to help guide your company vs. simply hiring an HR body to keep you out of a courtroom and to keep your files organized! This is a critical role, often overlooked by young and growing companies. Employees are the most valuable (and only appreciating) asset in an organization, and they can make or break an organization. Companies spend a lot of time and money on M&A diligence, vetting strategic partnerships, etc. However, many miss putting the same consideration into their human capital management. Hiring, training, and retaining best-in-class talent provides some of the best ROI for any organization, and that requires an individual (or entire department) dedicated to the recruitment, onboarding, training, continuous employee relations activities, and ultimately increasing employee happiness and effectiveness.
Evaluate Everything
Every company is looking to save money and improve their operations. Take this time to evaluate your current operational partners critically. Are you paying too much in additional fees? Are you getting the ROI you expect? Use this time to interview and seek out new partners who might be a better fit. What are the pillars of your culture? Is your leadership team the right mix? Do you have the right people on board to steer you toward the culture and future you hope for? Who do you want to attract to the organization? You may need to take some time to reflect and make some adjustments to the culture or team members to build the company you aspire to be.
Moving forward, companies who survive this can come out on the other side with better processes for employee hiring, onboarding, training, management, and retention. Many of us are in this business for the love and respect of the cannabis plant. Cannabis is a great connector of people, and this is an opportunity for us all to shift our operations to pay tribute to that fact and to improve our human relations processes.
Bryan Passman is a father, a husband, a trailblazer, and Co-founder and CEO of Hunter + Esquire. My professional background before launching H+E was entirely in retained executive search for 18 years in MedTech/Pharma (15 yrs) and Food and Adult Beverage CPG (3 yrs). My deep knowledge of those highly regulated and nuanced industries has helped H+E significantly understand the needs and wants of our cannabis clients. My deep and genuine networks within those industries have helped us deliver that rare talent “unicorn” our clients desire to fit their particular needs. My client-first approach helps us provide a very customized, white-glove, headhunter treatment to client and candidate.
Member Blog: Best Ways to Attract Top Talent to Your Cannabis Business
The cannabis industry is growing rapidly. As more people look to cannabis for the health benefits it provides, the industry is on an upward trajectory and now is a great time to get in on the ground floor.
If you are starting or growing your cannabis business, the people you hire will be very important. Your staff will include customer service reps which will be the face of your business, people who work behind the scenes to make sure you are compliant and organized, a marketing team and those in the warehouse who are responsible for making sure your products arrive safely and securely.
While the market is growing, the industry is quite competitive and you need to do what you can to make sure your business stands out. Hiring the right people can give you that edge. With that in mind, this article will explore the best ways to attract talent to your cannabis business.
Seek the Help of a Specialized Search Firm
It’s important to remember that the best candidates might not be the ones looking for jobs. They are often people that are already in respected positions and, with an attractive enough package, you may be able to lure them in to start working for you.
Certain search firms will know exactly where to look for the talent you need. They will have a network of qualified people that they will sort through before using other tactics. This will ensure that they are picking from a pool of experienced candidates who will know what it takes to help your company grow.
When considering what type of search firms will be best, look into retained recruitment and executive recruitment firms. Retained recruiters are dedicated to finding the ideal candidate for your position and they won’t stop until their job is done.
Executive recruiters, on the other hand, are skilled in finding candidates for top-level positions. Consult them to find qualified people who will see to it that your company is running smoothly and reaching its goals.
Show Your Company in the Best Light Possible
If you are looking to find top tier candidates for your positions, you have to show your company in the best light possible. Remember, you will be picking from a pool of highly skilled candidates who may have their choice of positions to choose from. Therefore, not only will it be important for the candidate to make a favorable impression, it will be important to the company as well.
Companies can do this by offering comprehensive compensation packages including competitive pay, benefits, and perks. A great work environment will also be a bonus.
You also want to do all you can to impress the candidate in the interview process. During this process, be sure to not only ask the candidate questions about themselves but leave them plenty of room to ask you questions as well. Bringing in members of the staff to meet them will also make them feel as if you are showing a real interest in them and want to make them part of your team.
Establishing your brand is another thing you can do to make your company look impressive. Your brand should have a logo, a well-designed website, a strong online presence, a clear mission statement, and a strategic marketing strategy before even attempting to look for top tier talent. A lack of these qualities can make qualified candidates run the other way.
Accurate Job Descriptions
Whether you are going through a search firm or doing your own headhunting, having an accurate job description will be a real bonus. It may seem obvious, but leaving out valuable information like the basic duties of the job, the hours, the benefits and pay offered, the location and anything else that might be relevant can make candidates skip over your ad and move on to the next.
Be sure to add as many details as possible when creating your wanted ads.
Offer Smooth Onboarding
Once you have decided on a candidate you would like to hire, follow up with a smooth onboarding process.
It may be surprising to find out how easy it is to lose qualified candidates during the onboarding process due to lack of communication, lack of support of just general confusion. Make sure that you maintain plenty of contact with your employees while they are becoming integrated into your system. Provide helpful feedback and encourage them to share their feelings and opinions during this pivotal time.
If you are looking to make your cannabis business stand out by hiring a first-rate staff, the steps you take during the hiring process are very important. Team up with the right search firms, make sure you look impressive to the talent, provide accurate job descriptions and continue to support them throughout the onboarding process. Then you can look forward to having a team that will help your company grow.
Jacob Carlson is the Co-Founder and CEO of Fortuna Business Solutions. Fortuna is proud to be one of the first east coast staffing agencies in the cannabis industry being based out of Portland, Maine. Jacob is a serial entrepreneur having previously co-founded a corporate event service (Just Enjoy!) and social media automation tool (RapidCrowd), and he is primed for scaling his next venture with his two co-founders, the Ellis brothers.
Hiring in the cannabis industry is hard, Fortuna Business Solutions makes it easy. We help businesses in the cannabis, CBD and hemp industry find quality candidates to hire on to their team. If you are tired of weeding through thousands of unqualified applicants or struggling to find someone with specific experience, we can help.
Committee Blog: What The Recent Layoffs in the Cannabis Industry Mean
Many in our industry have heard about the recent layoffs announced by cannabis companies, including some of NCIA’s members, in the U.S. NCIA’s Human Resources Committee views the layoffs as an unfortunate but sometimes necessary part of business, and overall remain optimistic about the industry as a whole.
On the face of it, the recent headlines regarding cannabis industry layoffs appear grim. One of California’s best-known cannabis brands announced a reduction of 20% of its labor force. Another grower is reported to have had a similarly sized cut. Listening to the news coverage, one might have the impression that the industry as a whole is going through a massive negative upheaval. This could not be further from the truth.
At the same time, we have seen hiring trends in 2019 that are overwhelmingly positive. According to an article in Forbes earlier this year, the cannabis industry added almost 65,000 jobs in 2018, with a substantially greater amount expected for this year. Clearly, cannabis is a significant growth engine for employment across the U.S. Add in Illinois, Massachusetts, and other states legalizing cannabis for medical or adult-use, and the numbers continue to grow. The state of the cannabis industry is strong!
Since its founding nearly a decade ago, NCIA has dedicated itself to promoting the growth of a responsible and legitimate cannabis industry. During this time, the industry workforce has swelled to over 200,000 people, and new people are joining us daily from coast to coast. NCIA’s HR Committee, which is comprised of human resource practitioners devoted to bringing best practices to the cannabis industry, carefully monitors hiring trends and other people-related developments.
NCIA’s Human Resources Committee regrets any job losses for their impact on the lives of employees and their families. History has shown that layoffs often happen in high growth industries. These reductions in force occur when companies who have over-invested ahead of anticipated growth must adjust their labor counts to rapidly shifting business dynamics. While painful in the short term for employer and employee alike, this represents a chance for other companies to acquire top talent, and for that top talent to secure new and exciting opportunities.
NCIA’s HR Committee is unwavering in its faith that the cannabis industry will continue to grow as an economic force in this country for many decades to come, and that these short-term changes will make the industry better, stronger and more resilient in the long run.
There are many ways you can get involved and help. Attend NCIA’s national trade shows and regional networking events to get your foot in the door of our dynamic industry. Start a business. Educate yourself on the latest issues, and contact your congressperson. Whatever road you choose to take, we look forward to welcoming you as our partner on this amazing journey!
Recruiters are on the front lines in the competition for talent. When a role is critical, tough to fill, or requires specific expertise, recruiters can play an invaluable role. They have the contacts, the skills, and the persistence to get the people you need right now.
Recruiters are a special kind of farmer. They aren’t picking the low hanging fruit. They are working on selecting the very best fruit. But, quality can come at a premium price.
The cannabis industry now has several strong talent acquisition firms. They know the industry and the lingo. They have contacts, and their connections have contacts. Currently, they are also one of the few sources of compensation rates for many positions in the industry. The pay data they provide is accurate, but it may not be “right.” How can this be?
Remember, the best recruiters target the best talent. They also target people with current jobs. The best talent usually gets paid more than typical, and still perfectly acceptable, talent. Employed people cost more to hire than unemployed people. This can result in recruiter provided pay ranges that are above industry norms.
The top people in any position commonly make 10-20% more than mid-level people. Motivating someone to change companies can take twice the increase as promoting an internal employee. This means recruiter-provided pay rates are often 20-35% higher than a formal compensation survey would indicate. This is fine for critical people, but it’s a ridiculously expensive way to pay an entire staff. This is why formal compensation surveys, like CannaCompensation, are essential to your success.
Compensation is likely your biggest expense – it may eat up as much as 75% of your revenue. Saving even 5% on paying your staff can mean the difference between growth and failure. This type of savings can fund a marketing campaign, purchase new equipment, develop new products, or become the down-payment on new real estate. When you provide your pay data to the CannaCompensation Study, you are building a foundation for future success. Participating is easy and confidential.
Your recruiters will always remain a vital source of information for pricing your highest priority positions. CannaCompensation will serve as the foundation for your pay decisions. When you combine them, you will be armed to win the battle for both talent and future success.
You’ve hired your team! Now, how do you manage that talent?
Most small business owners have demonstrated they are savvy enough to have launched an organization under the most demanding circumstances in business today. But I believe all small business owners go through a rude awakening when they realize the demands of being responsible for every aspect of that business – marketing, legal, accounting, IT, operations, and human resources. If HR isn’t one of your strongest skill sets, I hope to share insights that will build your HR competencies!
Your people are your greatest asset. Are you wondering how to maximize their value to you and your organization, and vice versa? Here are what I consider to be the top five steps to take to drive results and ensure success.
SET GOALS
What are your organization’s goals for the next year? Do you want to increase revenue by 20%? Increase production by 10%? Once you have one to five goals for the organization, set team goals that directly support the organization’s goals and individual goals that support the team goals. Then, everyone is aligned with your vision.
COMMUNICATE
You have to tell the teams and the individuals what those goals are so 1) they have purpose, and 2) you can hold them accountable. Remember, communication is the exchange of information. So collaborate with your teams and utilize their input and ideas. Make time to communicate with all the individuals that work for you – regularly and frequently.
REWARD YOUR PEOPLE
Competitive compensation and benefits are important, but most of us place more value on other forms of recognition. Have you witnessed the expression on an employee’s face when thanked for a stellar idea? Have you seen the flush of pride when an employee is publicly recognized for a job well done? The gesture costs nothing but your time and effort. There are many zero-to-low cost means of rewarding employees that one can consider.
DON’T AVOID CONFRONTATION
As a new manager, I found this to be the most difficult task to learn – to address poor behavior or performance immediately. Always discipline in private, present the issue for discussion, consider the employee’s side, and work together towards a solution. If the behavior or performance can’t be improved, then you need to get better talent. Often, the business suffers solely because we are avoiding confrontation.
BE A LEADER
Communicate your vision and compel employees to follow you by being collaborative, decisive, and respectful!
Carole Richter, CRichter ~ HR Consulting
Managing your talent can be one of the most difficult and rewarding aspects of being a business owner. The task is difficult because you are always dealing with variations on a theme! The people and the factors involved in each developmental opportunity are rarely the same. But, when your employee succeeds, you succeed.
Carole Richter, owner of CRichter ~ HR Consulting, has been a member of NCIA since May 2014. Carole consults with owners of small-to-medium-sized businesses to support, complement, or develop their skill set in talent management. She offers extensive experience in recruiting, training and facilitation, employee relations, negotiation and conflict resolution, talent management, leadership development, and succession planning.
For more on navigating the complex issues of human resources, register today for NCIA’s upcoming Educational Series event, Recruit, Retain, and Develop Your Talent, taking place on March 2at the History Colorado Center in Denver!
Recruit, Retain and Develop Your Talent — This panel of experts will help you build your human resources competencies! They will present the latest trends in talent acquisition and management. You will learn how to select the best person for the position and your organization, discover how to set and align your teams towards organizational goals, and drive and engage your best performers while managing others, up or out! Acquire the knowledge and tools you need to ensure your employees and your organization are successful.
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