Why Cannabis Firms Need an Employee Value Proposition, and Pronto

A business axiom says that you need a strong value proposition to compete effectively. This common sense extends beyond your products. Firms need a compelling value proposition to attract and retain staff, at all levels.  

Right now, sector fundamentals do not look good for businesses looking to maximize available talent, particularly top performers:

- Many see cannabis as a failed, or at best, highly unstable industry;

- Pay has not kept pace with other industries.  Moreover, stock-based compensation no longer entices like it used to;

- Many weed companies have unprofessional, immature cultures, especially when compared to peers in other industries;

- The bloom has come off the rose.  Whether it's because the above or just advancing age, the industry has lost much of its ‘cool’ factor. 

Don’t think you can bury the firm’s issues.  Glassdoor, Reddit and X are ablaze with current & former employees trashing your company over low pay, poor working conditions and mismanagement. 

Many executive recruiters describe – anecdotally confirmed by me - a growing talent gap:  good, canna-experienced people are leaving (and never to return) while potential hires are reluctant to join the fray.  I see the biggest gaps in finance, sales & marketing, and HR.

Given industry dynamics, it is fair to say that cannabis companies will rise or fall on their level of high-quality talent. This is where your employee value proposition becomes crucial.  An EVP outlines to existing and prospective employees ‘what you give and get’.  It is much more compelling than a “come work here with fun, young people and all the free weed you want’' pitch. 

The EVP should be credible, communicated widely and include these elements: 

1) A statement of your firm’s purpose, values and mission, answering the question, 'Why You?'

2) Consideration of non-pay perks like training, adaptive work cultures and incentive plans;

3) Basic documents like an org chart, roles & responsibilities and onboarding resources;

4) A transparent and clear overview of compensation & benefits;

If your firm doesn’t have this information, get to work. Likely, your competitors are upping their game. And don’t make the mistake of assuming your EVP is your firm’s brand.   What your brands tell the market could be very different than your EVP. To wit, a high touch consumer experience can be powered by a hard-driving, results-oriented culture. To avoid misunderstandings, it is also essential for leaders to understand their employee experience and how it jives with a potential EVP.

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