The Great Cannabis Resignation
A hot topic these days is the Great Resignation, a term to describe the widespread employee turnover happening in the US and Canadian labour markets. This problem has many dimensions.
In the US, almost 70M people left their jobs in 2021 (source: US Bureau of Labor Statistics). Nearly 2/3 of those who left departed in the last six months. It’s not much better in Canada, either.
A national Robert Half employment survey found that 28% of professionals are expecting to start a new job by mid-2022, up from 21% six months ago. For Millennials, that stat jumps to 40%. Alarmingly, 20% of all workers say they're willing to quit before landing their next job.
The cannabis sector, unfortunately, is not immune to these developments. In fact, the industry is at a higher risk given the existing shortage of skilled and experienced workers and the precariousness of many of its companies.
Quality industry data is scarce but I’m seeing the greatest turnover in semi-skilled and managerial positions, mostly at retail (budtenders, store ops) and cultivators (growers, compliance and supply chain).
There are many reasons for the Great [cannabis] Resignation: employees are leaving for higher pay, characteristic of a tight labour market; people are fed up with the ongoing travails of the cannabis space, not to mention the numerous toxic corporate cultures and; many workers are frustrated or depressed with remote work (RW) arrangements. Those employees that remain in their jobs may be just as unhappy. They are often left with more work to do and FOMO over their peers leaving. Many are emotionally checked out becoming less engaged and present (sick days are skyrocketing).
The GR should matter to every cannabis company. Broad market, economic and social forces are driving up wage costs; sparking demands for new RW-friendly organizational practices and; challenging recruiting & retention efforts.
There are no signs that the GR will abate soon. Leaders should respond to this unique problem by going beyond typical solutions. For example:
1. Provide added management flexibility to better address employee needs and schedules;
2. Enhance employee mental health initiatives while seeking to pre-empt burnout;
3. Prioritize talent management including better recruiting and training plans;
4. Strengthen the culture by fostering a compelling purpose and a sense of community;
5. Redesign the organization to streamline decision making, improve team building and reduce complexity.
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