Why the Great Cannabis Resignation is Turning into the Great Cannabis Regret
Nothing like tough times...
Behind the celebrations around 4/20 is some good news for cannabis operators – and possibly bad news for employees. In the 2020/21 period, employee turnover particularly of Gen Z and Millennial workers was at all time highs. According to experts, this turnover was caused by the effects of the pandemic and poor working practices and management. Many employees left to find a greater sense of purpose/identify as well as better ‘human-centric’ working conditions.
Yet, most of the workers didn’t drop out of the labour force. It wasn’t a resignation. Enabled by a tight labour market, they left for greener and more lucrative pastures. And surprise, surprise, recent data suggests they didn’t necessarily find their workplace or personal nirvana.
Aggregated cannabis employee sentiments are very difficult to come by. However, other research can shed some light on this professional immaturity.
Muse, a job search site, recently surveyed 2,500 workers. They found that almost three-quarters of them (72%) experienced either “surprise or regret” that the new position or new company they quit their job for turned out to be “very different” from what they were led to believe. Nearly half (48%) of these workers said they would try to get their old job back.
Maybe the problem wasn’t just about cannabis companies treating their employees poorly or making bad operating decisions. Possibly, cannabis employees have been more than a bit naïve and ignorant (especially for veterans of the illicit market) of how businesses really function and the constraints they face. While its great to work for a firm with a strong shared purpose, these make up a tiny minority of enterprises. And even companies like Google or Amazon that appear more ‘human-centric’ will have more than their share of negatives.
Other factors will also play a role in reducing turnover. Government Covid financial support has come to an end. Rising inflation and debt are weighing on people’s finances – and making them more risk adverse. Finally, many of the high-flying cannabis companies that hoovered up skilled workers are now cutting costs and right sizing operations.
Not surprisingly, in these difficult times people are flocking back to work and staying put. This will be good news for a cannabis industry that needs all the (mature) talent it can get its hand on.
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