Cannabis Industry Sees Significant Salary Growth and Faces Challenges in Talent Retention and Regulatory Hurdles
Significant Salary Increases Across Roles
The cannabis industry has seen marked growth in executive compensation, with chief executive officers at the largest companies earning base salaries exceeding $416,000. This provides a stark contrast to mid-level managers, and even other top executives such as Chief Financial Officers, Presidents, Chief Revenue Officers, and Chief Marketing Officers, who command impressive salaries ranging from $396,469 to $338,195.
Over the last three years, various roles have witnessed substantial salary increases. For instance, the Master Grower role saw an increase from $107,182 to $210,201. Similarly, the Controller role experienced a rise from $131,116 to $184,186. These increases reflect the growing value and need for expertise within the booming cannabis industry.
Industry Growth and Challenges
With U.S. cannabis sales reaching $33 billion in 2023 and an expectation to hit $31 billion by the end of 2024, the industry is undeniably on an upward trajectory. This growth has naturally extended into the realm of executive compensation and benefits. Benefits packages are gaining significant importance, with two out of three employees indicating a willingness to leave their current job for better benefits. This underscores a shift in what employees prioritize in their compensation packages.
However, the cannabis industry is not without its challenges. A significant regulatory burden persists, impacting both business operations and employee compensation. A call for regulatory overhaul is echoed throughout the industry to support small business owners and prevent inevitable layoffs, which can stymie the growth momentum.
There is also a noticeable pay gap between CEOs and lower-level employees. While the average cannabis CEO’s pay in 2023 was $402,350, budtenders earned around $42,000 per year. Entry-level and mid-level roles such as production supervisors, accounts receivable leads, and executive assistants have lower salaries ranging from $44,747 to $66,598, illustrating a substantial disparity.
Strategies in Talent Acquisition and Retention
Talent acquisition remains a critical focus. Companies are increasingly looking towards candidates from outside the cannabis industry who bring a wealth of best practices from traditional consumer industries, while still honoring the unique core culture of cannabis. This strategy aims to enrich the industry’s talent pool and introduce innovative perspectives.
Effective compensation packages that encompass base salary, bonuses, and equity are vital in attracting and retaining top-tier talent. These packages’ importance varies across different age groups, presenting a challenge for companies striving to satisfy a diverse workforce. Hence, a tailored approach to compensation may be necessary to effectively meet the varied needs and expectations of employees within the cannabis sector.
