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Why Cannabis Companies Struggle With HR and Turnover
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While the estimate of over 420,000 jobs created by the cannabis industry might sound like a “Weekend Update” joke, the figure is a staggering reality. According to the 2025 Vangst Job Report, the American cannabis sector now supports over 425,000 jobs. Despite a slight 3.4% decline in total employment recently, the industry remains a massive employer.
Yet, even with a workforce drawn from all walks of life, many cannabis firms under-invest in the very HR departments meant to support them. The result? Employee turnover in dispensaries and cultivation facilities is exponentially higher than in traditional industries, creating ripple effects that threaten the bottom line.
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| HR Challenge | Industry Impact | Operational Risk |
|---|---|---|
| High Employee Turnover | Frequent hiring cycles in dispensaries and cultivation facilities | Training costs and inconsistent service quality |
| Weak HR Infrastructure | Limited onboarding systems and unclear policies | Poor employee engagement and burnout |
| Compliance Gaps | Errors in payroll, overtime, and documentation | Fines and labor investigations |
| Leadership & Training Deficits | Managers lack operational training | Inconsistent workplace culture |
The Original Causes of These HR Issues
The youth and rapid expansion of the cannabis industry meant that crucial human resources infrastructure was often built on a shaky foundation. Marc Rodriguez, Co-Founder and CEO of Green Leaf Business Solutions, notes that the industry was essentially “built in survival mode.”
As adult-use markets exploded in states like California and Colorado, growth simply outpaced operational maturity. Rodriguez explains that because the industry lacked access to traditional HR tech platforms and institutional capital due to federal illegality, many companies began “scaling without foundational workforce systems.”
Operational Risks of Weak HR Systems
Beyond high turnover, a lack of professional HR oversight exposes companies to costly hefty non-compliance fines. From wage and hour violations to inaccurate I-9 documentation, the risks are high. Rodriguez warns that federal illegality does not grant a “free pass” when it comes to labor laws: “Wage and hour laws, overtime rules, and recordkeeping requirements apply equally.”
Ultimately, high turnover is often a symptom of deeper organizational failures. Rodriguez believes that when onboarding is chaotic and expectations are unclear, employees don’t just quit—they instead disengage.
Brendan McKee, Co-Founder & COO of Silver Therapeutics, agrees that these systemic failures usually start at the C-suite level. He argues that if a corporate team isn’t leading effectively, the entire organization will lack the management systems necessary to hold teams accountable. “If you fail to plan, you plan to fail,” McKee adds, emphasizing the need for clear OKRs and KPIs across all departments.
How Cannabis Companies Can Fix HR Challenges
To combat these issues, Rodriguez suggests a multi-layered approach that moves beyond simple administrative tasks. This includes creating clear career pathing, refining core company values, and implementing a “consistent communication cadence.” He notes that while culture is vital, it cannot stand alone: “Culture matters, but culture without systems doesn’t scale.”
At Silver Therapeutics, McKee has seen success by prioritizing the holistic health of his team. This involves offering competitive compensation and mental health services, but more importantly, creating “open format meetings” to ensure concerns are heard. McKee stresses that visibility is key, stating that it is “important for folks across the markets we serve to have visibility on everything we are working on to improve as a company.”
The Future of HR in the Cannabis Industry
Looking ahead, McKee believes that engaging with employees at all levels—from retail managers to budtenders—leveraging their daily experiences is what will ultimately improve the customer journey. “We are always stronger together,” he concludes.
As newer markets emerge in states like Florida and Minnesota, the competitive landscape will continue to shift. Rodriguez recommends that operators stop viewing HR as an expense and start seeing it as a “strategic growth driver.” In his view, the future of the industry belongs to those who professionalize their people operations today.
