Cannabis industry turnover has historically exceeded that of comparable industries. While some churn is inevitable in a rapidly evolving sector, excessive turnover is costly and disruptive. Understanding why employees leave—and what keeps them—is essential for building stable teams.
**Why Cannabis Employees Leave**
Exit interview data and industry surveys reveal common departure reasons:
1. **Compensation**: While cannabis wages have improved, employees often find better-paying opportunities elsewhere—sometimes in the industry, sometimes in adjacent fields.
2. **Limited Advancement**: Many cannabis companies lack clear career pathways. Ambitious employees who see no growth opportunities will seek them elsewhere.
3. **Burnout**: Cannabis operations often involve demanding schedules, particularly during harvest or new store openings. Without adequate support, burnout drives departures.
4. **Management Issues**: As in any industry, poor management is a top reason employees leave. Cannabis companies have often promoted based on industry experience rather than leadership ability.
5. **Company Instability**: Market volatility, financial challenges, and organizational changes create uncertainty that drives employees to more stable opportunities.
**Retention Strategies That Work**
Companies with lower turnover typically implement:
**Competitive Compensation Reviews**: Regular market analysis ensures pay remains competitive. Annual adjustments prevent employees from needing to leave to get raises.
**Career Development Programs**: Clear pathways from entry-level to senior positions. Training programs that help employees advance.
**Flexible Scheduling**: Where operationally possible, providing schedule input and work-life balance improves satisfaction.
**Recognition Programs**: Acknowledging strong performance through formal and informal recognition. Employee of the month, performance bonuses, public appreciation.
**Management Training**: Investing in leadership development for supervisors and managers. Poor managers create retention problems; good ones solve them.
**Culture and Values**: Employees increasingly want to work for companies whose values align with their own. Authentic commitment to social equity, sustainability, or community involvement can differentiate employers.
**The Cost of Turnover**
Calculate your turnover costs: - Recruiting expenses (advertising, recruiter fees) - Training time for new hires - Reduced productivity during onboarding - Knowledge loss from departing employees - Impact on remaining team morale
For most positions, replacing an employee costs 50-200% of annual salary when all factors are considered. This makes retention investment highly cost-effective.