How to Develop A Benefits Package That Will Attract Valuable Employees

A proven method for becoming an employer of choice is to offer an appealing benefits package to employees.

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This article originally appeared in the April 2018 issue of Cannabis Dispensary. To subscribe, click here.

With increasing numbers of retail cannabis outlets comes additional pressure on operators to attract and retain valued employees.

A proven method for becoming an employer of choice in any industry is to offer an appealing benefits package to employees—especially to those you have trained and who are part of the value proposition in your company. Maintaining a good reputation as an employer and supporting your hard-working employees is not only the right thing to do, but it also makes excellent business sense.

Yet, tax code Section 280E makes this proven HR axiom more complex and challenging for the cannabis industry. Non-cannabis business entities can claim employee salaries and employee benefits—such as health, dental and vision insurance, or perks such as free coffee, snacks or gym memberships—as costs of doing business. A strict interpretation of 280E dictates that most cannabis retailers cannot do the same.

Size Matters

If you are a very small (less than four employees) retail business, then good employee benefit packages may not be affordable. Small retailers need to find other ways to make a job attractive and to retain experienced employees.

For larger cannabis retailers, the question becomes: Can you afford not to offer benefits or perks that will help retain employees and make your business more attractive to the best candidates?

Colorado’s Native Roots, with 20 dispensary locations and roughly 635 employees between its dispensaries and cultivation facilities, is among the largest dispensary businesses in the U.S. Its communications manager, Kim Casey, says maintaining loyal and trained staff is paramount, and is an important part of the company’s overall business approach. “The industry is rife with turnover, especially in the budtender and trimmer’s occupation. We want our employees to build their career at Native Roots, so we offer a good benefits package as well as a ‘living wage’—not just minimum wage—to keep our employees,” she says. “We offer full benefits, including health, vision and dental, which the company subsidizes.”

To read the full article in Cannabis Dispensary's April 2018 issue, click here

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