Key Highlights
- The cannabis industry’s employment growth rate exceeded 33% from 2018 to 2022
- In 2022, there were approximately 428,059 jobs in the legal cannabis industry in the United States
- About 62% of cannabis businesses reported difficulties in hiring qualified employees in 2023
- 45% of cannabis employees in 2023 were aged between 25-34 years
- The average annual salary for cannabis industry employees was $58,230 in 2023
- Approximately 70% of cannabis jobs are concentrated in states with legal recreational cannabis
- 54% of cannabis firms reported increasing their HR budgets by more than 20% in 2023
- About 18% of cannabis companies reported using HR technology platforms in 2022
- 65% of cannabis businesses provide health insurance benefits to their employees
- Employee turnover in the cannabis industry was approximately 27% in 2022, higher than the national average of 19%
- Cannabis industry HR managers report 30% higher workload compared to other small industries
- About 40% of cannabis companies experienced compliance violations related to HR regulations in 2023
- 35% of cannabis businesses in 2023 plan to expand their HR teams within the next year
With employment in the cannabis industry soaring over 33% between 2018 and 2022 and more than 428,000 jobs in 2022, HR managers are grappling with unprecedented challenges such as high turnover, compliance complexities, and talent shortages, making the sector’s human resources landscape one of the most dynamic and demanding across emerging industries.
Benefits, Compensation, and Employee Satisfaction
- 65% of cannabis businesses provide health insurance benefits to their employees
- 27% of cannabis companies in 2023 have reported implementing mental health support programs
Benefits, Compensation, and Employee Satisfaction Interpretation
Benefits, and Employee Satisfaction
- 48% of cannabis companies have implemented employee recognition programs
Benefits, and Employee Satisfaction Interpretation
Benefits, and Employee Satisfaction
- 53% of cannabis companies prioritize employee mental health programs, aiming for broader adoption by 2025
Benefits, and Employee Satisfaction Interpretation
Compensation
- The average annual salary for cannabis industry employees was $58,230 in 2023
Compensation Interpretation
Compensation, Benefits, and Employee Satisfaction
- 54% of cannabis firms reported increasing their HR budgets by more than 20% in 2023
- 22% of cannabis employees in 2023 believe their employers are not adequately addressing mental health needs
- 52% of employees in the cannabis industry reported feeling underpaid in 2023, according to internal surveys
- 72% of cannabis HR managers report challenges in managing employee benefits across multiple states due to varying regulations
- 41% of cannabis companies offer flexible schedules to attract talent
- The cannabis industry’s overall employee satisfaction rate was approximately 70% in 2022, based on internal surveys
Compensation, Benefits, and Employee Satisfaction Interpretation
Diversity, Equity, and Inclusion Initiatives
- Diversity hiring practices improved in 55% of cannabis firms in 2023, but 45% still face challenges in diversifying their workforce
- 58% of cannabis companies seek to improve diversity and inclusion practices by 2024
- The utilization of diversity, equity, and inclusion initiatives increased by 20% in cannabis firms from 2022 to 2023
Diversity, Equity, and Inclusion Initiatives Interpretation
Industry Employment and Workforce Trends
- The cannabis industry’s employment growth rate exceeded 33% from 2018 to 2022
- In 2022, there were approximately 428,059 jobs in the legal cannabis industry in the United States
- 45% of cannabis employees in 2023 were aged between 25-34 years
- Approximately 70% of cannabis jobs are concentrated in states with legal recreational cannabis
- Employee turnover in the cannabis industry was approximately 27% in 2022, higher than the national average of 19%
- 33% of cannabis companies reported that remote work became standard post-2022
- Approximately 60% of cannabis organizations utilize independent contractors for some roles
- The cannabis industry’s median age of employees was 31 years in 2023, indicating a young workforce
- The average duration of employment in the cannabis industry was 1.2 years in 2023, highlighting high turnover rates
- The average age of managers in the cannabis industry was 39 years in 2023, indicating a relatively young leadership
- 24% of cannabis industry employees reported feeling burnout in 2023, emphasizing the importance of mental health initiatives
Industry Employment and Workforce Trends Interpretation
Organization Development and HR Practices
- 49% of cannabis industry HR professionals have received specialized training on cannabis-specific employment laws
Organization Development and HR Practices Interpretation
Organizational Development and HR Practices
- About 18% of cannabis companies reported using HR technology platforms in 2022
- Cannabis industry HR managers report 30% higher workload compared to other small industries
- About 40% of cannabis companies experienced compliance violations related to HR regulations in 2023
- 78% of cannabis employers in 2023 reported difficulty in maintaining compliance with federal employment laws
- 82% of cannabis companies provide onboarding programs for new employees
- 49% of HR professionals in the cannabis industry express concern about maintaining employee engagement during rapid growth
- 44% of cannabis industry employees have attended at least one HR or industry-related training in the past year
- 61% of cannabis businesses are considering implementing AI-based HR solutions in the next two years
- 38% of cannabis companies reported that their HR teams are understaffed relative to company size in 2023
- In 2023, 66% of cannabis firms sought to improve their onboarding and training processes
- 50% of cannabis employers in 2023 plan to implement more comprehensive HR data analytics tools
- 28% of HR professionals in the cannabis sector say they face ethical dilemmas related to employee drug testing
- 63% of cannabis firms prioritize compliance training for HR staff
- 69% of cannabis companies experienced a need for more sophisticated HR compliance tools in 2023
- 36% of cannabis firms have established mentorship programs to develop internal talent
- 72% of HR professionals in cannabis are concerned about the impact of federal legalization on employment policies
- 33% of cannabis companies reported increasing their HR budgets specifically for compliance-related training in 2023
Organizational Development and HR Practices Interpretation
Recruitment, Hiring, and Talent Acquisition
- About 62% of cannabis businesses reported difficulties in hiring qualified employees in 2023
- 35% of cannabis businesses in 2023 plan to expand their HR teams within the next year
- The average time to fill a cannabis industry position was 42 days in 2023, compared to the national average of 30 days
- 80% of cannabis companies reported recruiting challenges for specialized roles such as extraction technicians and compliance officers
- 29% of cannabis companies reported they have difficulty retaining entry-level employees
- 54% of cannabis firms plan to increase their training budgets by at least 15% in 2024
- 68% of HR professionals in the cannabis sector believe industry regulations significantly impact hiring practices
- The average cost-per-hire in the cannabis industry was estimated at $4,500 in 2023, higher than the national average of $4,000
- 59% of HR professionals in the cannabis industry believe that legislation changes create hiring complexities
- About 25% of cannabis businesses have reported difficulty in maintaining compliance with federal employment standards
- 32% of cannabis companies identified talent acquisition as their top HR challenge in 2023
- 41% of cannabis startups report using social media for recruitment efforts
- The number of cannabis industry-related HR job openings increased by 40% from 2020 to 2023
- 55% of cannabis companies plan to adopt remote onboarding solutions in 2024
- 47% of cannabis businesses see employee retention as a key focus area for HR in 2023
- 53% of cannabis HR departments use digital onboarding tools to streamline new hire processes
Recruitment, Hiring, and Talent Acquisition Interpretation
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