Let’s be blunt: Investing in people will spark success
The cannabis industry is growing rapidly, and companies need employees now more than ever. In today’s tight labor market, the focus on employee benefits is critical for businesses, helping improve productivity and recruitment, and retain good employees.
Low pay, limited employee benefits and industry stigma has further complicated the labor issue. Many cannabis companies are adding health insurance and offering 401(k) plans for the first time, raising wages, and creating worker-friendly environments to attract and retain.
Businesses with over 50 full-time, or full-time equivalent, employees are required to offer health coverage under the Affordable Care Act (ACA). Cost-containment is top of mind for cannabis business leaders, and employers are using various strategies to decrease benefits costs. Common strategies include changes to medical plan designs; increasing deductibles or out-of-pocket maximums; implementing narrow networks; and, offering an Individual Coverage Health Reimbursement Arrangement, or ICHRA.
Medical, dental, vision and life benefits remain the most common benefit offerings, but employers continue to expand the offerings to meet the unique needs of today’s workforce. Cannabis companies are now offering additional benefits such as disability, accident, hospital indemnity, and critical illness insurance. In addition, many groups are offering telehealth and access to employee assistance programs. 72% of employers in the cannabis industry are offering paid time off, and 71% offer health benefits according to the Vangst industry jobs report.
Personalized benefits programs offer a partial answer for employers in the cannabis industry. Personalizing benefits to meet individual employee needs results in positive employee experiences.
Cannabis companies should consider a benefits strategy centered around delivering quality employee experiences to help build a workplace that attracts and retains workers.
Melissa Seiler is an Employee Benefits Consultant at HUB International who specializes in working with companies in the cannabis industry throughout the United States. HUB International is a global insurance brokerage with over 530 locations that provides business insurance, employee benefits, personal insurance, retirement, wealth management and risk services. To learn more, contact Melissa Seiler via email at melissa.seiler@
