August 2018

qualifying medical conditions for MMJ patients in Pennsylvania. Solevo also paid employees to attend networking events or set up booths – at food and wine festivals, in yoga and well- ness centers and at libraries – to build a better understanding of cannabis in the community through consumer education. “Your staff should be out and be mouthpieces for your dispensary and the industry, to change the perception of what this plant can do,” Gullickson said. 3. Hire Based on Market Conditions A staffing plan is critical, Solevo’s Gullickson said. In a new market that you anticipate will have healthy supply, she advised to overstaff – or scale up your initial hiring. And in a market where supply and demand will be a challenge, scale back your initial hiring RETAINING TALENT STARTS WITH TRANSPARENCY O pen communication during the hiring process can help manage employees’ expectations, so they’re not blindsided by market delays. Continued transparency keeps them invested in the business, even during delays. Set reasonable expectations for job candidates. Tell themwhat’s happening in your market and explain poten- tial regulatory delays, testing logjams or supply shortages, said Helen Cho, director of integrated strategy at Hono- lulu’s vertically integrated Aloha Green. “During interviews, we tell candidates that we’re a startup,” Cho said. “That doesn’t mean we’re not doing well, but we haven’t broken even yet. We say, ‘There’s room for growth and excellent benefits – but if you’re just out to make a lot of cash, this probably isn’t the role for you.’ It weeds out people who’d be the first to walk away anyway if there was any issue or delay in the market.” Aloha Green’s benefits package – full health, dental and vision insurance – is a big incentive that helps the business retain employees during delays. Also, ask up front whether job candidates are interested in full- or part-time work. Schedule appropriately and find them a role that sets them up for success, Cho said. Investing in local talent also makes it easier to retain employees, Cho said. In general, Aloha Green doesn’t hire employees who aren’t current, full-time residents of Hawaii. Out-of-state candidates are talented and may have experience working in heavily regulated cannabis markets, but often they aren’t connected to the community and aren’t prepared for Hawaii’s high cost of living, Cho said. “When employees don’t have roots in a community, they’re more likely to go back home when things don’t work out,” she said. “Ultimately, it’s harder for us to find local people and train them, but we can’t afford to invest in talent and then have them leave.” After hiring, transparency and communication should be ongoing to keep employees informed and engaged. “Transparency and communication are so important,” she said. “There’s no reason to hide when you’re still fig- uring things out, when regulations are up in the air, when there are things you didn’t knowwould happen until they happened.” Every week, Aloha Green’s executive team hosts an all-hands conference call. Employees are encouraged to call in to hear market insights and learn what’s happening in the business. “It helps people understand what’s happening in the business, so they understand that nothing is personal,” Cho said. – Joey Peña and develop a strategy to run a lean operation until the industry stabilizes. In new, unpredictable markets, small, family-owned businesses that aren’t backed by venture capital should rein in their initial hiring, Pakalolo’s Hollister advised. “Don’t put yourself in a position to have too much overhead tied up in labor until you know you have money coming in,” Hollister said. When market conditions require you to operate a lean team, it’s important to have stakeholders who are willing to get their hands dirty, Hollister said. In the months before retail operations started, Pakalolo’s owners (the Hollister family) and a family friend cultivated, trimmed and packaged cannabis. “You need to be willing to put in 10- and 12-hour days, seven days a week for months and months and months to make it work,” Hollister said. “That was our only option because we didn’t have the money to hire more help than we absolutely needed.” 4. Cross-Train Staffers At Aloha Green, retail employees were encouraged to work in cultivation or production when there wasn’t supply to keep the dispensary open, Cho said. Cross-training makes for a more flexible staff, because employees can be used in other operations, she said. It also helps employees explore new skills, Cho said. “We learned to let employees go where they’re happiest,” she said. “It makes them more productive, and it makes them happier. It would be harder for them to focus on work if they know 80 • Marijuana Business Magazine • August 2018