Cannabusiness owners face many of the same HR challenges as other employers, but often with additional layers of complexity.

Running a cannabis business is complicated enough without adding a maze of HR responsibilities to the mix. From hiring and onboarding employees to payroll, benefits, compliance, workers’ compensation and employee policies, cannabusiness owners face many of the same HR challenges as other employers, but often with additional layers of complexity.

That is where a Professional Employer Organization (PEO) can make a significant difference. A PEO gives cannabis businesses access to professional HR resources, technology and expertise while helping take many time-consuming administrative responsibilities off the owner's plate.

The HR Challenge Facing Today's Cannabusiness

Cannabis companies operate in an environment where regulations, employment requirements and business practices can vary significantly by state and locality. At the same time, employees expect competitive compensation, benefits, clear workplace policies and a professional employment experience. For a growing cannabusiness, trying to manage all of this internally can quickly become overwhelming.

Owners may find themselves spending valuable time:

• Processing payroll
• Managing employee paperwork
• Tracking employee benefits
• Handling workers' compensation administration
• Developing employee handbooks and HR policies
• Recruiting and onboarding employees
• Keeping up with changing employment requirements
• Addressing employee relations issues
• Maintaining personnel records
• Managing HR technology

These responsibilities don't generate revenue, but they are essential to running the business. A PEO can help simplify many of them.

1. Payroll Doesn't Have to Become a Full-Time Job

Payroll is one of the most important responsibilities an employer has—and one of the easiest places for administrative problems to arise.

As a cannabusiness grows, payroll becomes more complicated. More employees mean more wage calculations, tax withholding, deductions, timekeeping and reporting.

A PEO can provide payroll technology and administrative support designed to make the process more efficient.

Instead of manually managing every aspect of payroll, business owners can have a centralized system for managing employee compensation and payroll information.

The result?

Less administrative work and more time to focus on the business.

2. Hiring and Onboarding Employees

Cannabis businesses often need employees with different skill sets, from retail and customer service personnel to cultivation, production, management and administrative professionals. Finding the right employees is only the beginning. Once someone is hired, the employer must manage onboarding, employee documentation, payroll setup, policies and other HR requirements.

A PEO can help establish a standardized onboarding process so new employees have a more professional experience from day one.

That can be especially valuable for rapidly growing companies that are hiring multiple employees at once.

3. Employee Benefits Can Help You Compete for Talent

Finding qualified employees can be challenging in any competitive industry. Offering benefits can help a small or growing company compete for talent with larger employers. Depending on the PEO and available plans, services may include access to health insurance, retirement plans and other employee benefits.

A PEO may also provide technology that makes it easier for employees to enroll in and manage their benefits. For a growing cannabusiness, providing a professional benefits experience can help make the company more attractive to potential employees—and help retain the people already on the team.

4. Workers' Compensation Administration

Workplace injuries are an unfortunate reality for employers in many industries. Cannabis businesses can have a variety of workplace environments, depending on their operations. Employees may work in retail locations, warehouses, manufacturing environments, cultivation facilities or offices.

Managing workers' compensation can involve insurance, employee documentation, claims administration and regulatory requirements.

A PEO can help employers manage the administrative side of workers' compensation and integrate it with other HR functions. That can give business owners one less administrative burden to manage on their own.

5. HR Compliance Is Too Important to Ignore

Employment laws can be complicated. Businesses may need to consider federal requirements along with state and local employment regulations involving areas such as:

• Wage and hour requirements
• Employee classification
• Workplace safety
• Leave requirements
• Anti-discrimination rules
• Employee documentation
• Required workplace notices
• Hiring and termination procedures

Cannabis businesses may already be spending considerable time understanding the regulations surrounding their industry. Adding a second layer of employment-related compliance responsibilities can stretch internal resources even further. A PEO can provide HR professionals and resources to help employers establish appropriate policies and processes and stay informed about employment requirements.

A PEO does not eliminate an employer's legal responsibilities, but it can provide valuable HR expertise and administrative support.

6. Employee Handbooks and Workplace Policies

A growing company needs consistent workplace policies.

What happens when an employee calls off?

How are overtime requests handled?

What is the company's policy regarding workplace conduct?

How are complaints reported?

What happens when an employee violates a company policy?

Without clearly documented policies, employers can find themselves handling similar situations differently from one employee to another. A PEO can help businesses develop and maintain employee handbooks and HR policies that create greater consistency across the organization. For a growing cannabusiness, that consistency becomes increasingly important as the workforce expands.

7. HR Technology Without Building Your Own HR Department

One of the biggest advantages of a PEO is access to HR technology. Modern PEO platforms can bring multiple HR functions together in one system, including:

• Payroll
• Employee information
• Time and attendance
• Benefits administration
• Onboarding
• HR documents
• Employee self-service
• Reporting

Instead of managing several disconnected systems, a business can have a more centralized HR environment. Employees can also gain access to information and tools without having to contact the business owner or manager for every routine HR question.

8. Employee Relations Can Become More Complicated as You Grow

When a business has only a few employees, the owner may personally handle most employee issues. That changes as the company grows. Employee disagreements, performance problems, disciplinary issues, complaints and termination decisions can become increasingly difficult to manage.

A PEO can provide access to HR professionals who can help business owners navigate these situations and develop consistent HR practices. That doesn't mean the PEO makes decisions for the business. Instead, it provides an experienced HR resource that can help owners make better-informed decisions.

9. A PEO Lets Owners Focus on the Business

Perhaps the biggest benefit is simple:

You didn't start a cannabusiness because you wanted to become an HR administrator. You started it to build a company. Every hour spent wrestling with payroll, benefits administration, employee paperwork and HR processes is an hour that could have been spent improving operations, serving customers, developing products, managing employees or growing the business. A PEO can take many of those administrative responsibilities and organize them into a more manageable HR system.

Is a PEO Right for Your Cannabusiness?

A PEO may be particularly valuable for cannabis companies that are:

• Growing their employee count
• Hiring managers or administrative staff
• Struggling with payroll administration
• Looking to offer competitive employee benefits
• Spending too much time on HR paperwork
• Concerned about employment compliance
• Managing employees across multiple locations
• Ready to move beyond informal HR processes

The right PEO can essentially become an extension of your company's HR operation.

Cannabis Is Complicated Enough. HR Doesn't Have to Be.

Building a successful cannabusiness requires attention to countless details. Your HR operation shouldn't become another source of unnecessary complexity. A Professional Employer Organization can provide the technology, HR expertise and administrative support businesses need to manage their workforce more efficiently.

At SkyHigh PEO, our goal is to help business owners simplify HR so they can spend more time doing what they do best, running and growing their business. If your cannabusiness is growing and HR responsibilities are starting to consume more of your time, it may be time to explore what a PEO can do for you. Let SkyHigh PEO help take HR off your shoulders and put your focus back where it belongs: growing your business.