In case you missed it, we recently had an amazing webinar with HUB International and Intellicents going over best practices for how to effectively scale your rapidly growing cannabis organization with a strong ecosystem of partners that understand and specifically serve the highly regulated industry.
The global legal marijuana market size was estimated to be 9.1 billion in 2020, yet is expected to reach 70.6 billion by 2028. If this doesn’t say how rapidly this industry is growing, we aren’t sure what does.
In this webinar, we heard from Leigh Wilson, the VP of Sales at HUB international, Tom Krusic, Financial Consultant at Intellicents, and our very own, Steven Cohen, Chief Revenue Officer here at PeopleGuru.
The webinar began with our problem statement (2:36). As the Cannabis industry continues to grow quickly and dramatically, many businesses are left scrambling to put the proper compliance, risk, and employee packages in place to promote retention as they continue scaling.
From there, we were presented with a scenario similar to that of which many players in the industry are currently facing (4:55). In this scenario, we are faced with a dispensary out of Colorado with three locations and 150 employees. This organization took a 200 million dollar investment from a private equity firm using a SPAC to go public. This firm then used a PIPE technique to raise another 200 million, leaving a total of 400 million dollars in hand to expand nationally and break ground in New York City.
Leigh walked us through the number one question investors are going to ask—what does the insurance look like? With a number of regulatory and compliance issues from both a state and federal level, it is best to explore both traditional and nontraditional approaches.
HUB International has successfully developed Transformational Directors and Officers Insurance-- a vehicle allowing a cannabis organization that is going through SPAC to be able to fund the insurance with publicly traded shares through a captive. (Skip to 8:08 for more from HUB International).
Next, we heard from Tom on benefit programs. While many mainstream 401k providers are still unwilling to support cannabis clients, they are beginning to try to educate themselves and find their way into the industry.
Regardless, employers must still consider that many states are beginning to require employers to offer a benefits program, and acquiring companies that have a 401k program in place can create difficulties if your company does not already have a benefits program. New York City has already passed a 401k mandate, and the state of Colorado is following suit.
To begin the process of obtaining a 401k plan, you must find someone who knows both ERISA and cannabis, and delegate as much liability as you can for everything. (Skip to 11:52 for more from Intellicents)
Finally, we heard from Steven to learn how a current client is overcoming their top three business challenges and scaling from 1.0 to 2.0 with the help of a strong technology foundation to help streamline every stage of the employee lifecycle, seamlessly onboard hundreds of new employees at once time as new locations open, and focus on everything talent management. (24:36).
In addition to a great focus on employee retention and development strategies, it is important for cannabis organizations to re-evaluate their HR processes to ensure consistent business operations that will support the appropriate compliance standards compliance. Pay close attention to the compliance gap as it comes with a lot of exposure Employee misclassification, biometric policies, scheduling issues, and premium pay can lead to heavy fines and ongoing compliance issues.
(skip to 23:53 for more from PeopleGuru)
Our webinar ended with a Q&A session that can be found at 38:43. Thank you to everyone who attended and to our partners HUB International and Intellicents for participating.
You can click here to watch a recording of the webinar on demand.
This blog post was written by Alexa Rivera and may not be copied or published without PeopleGuru's express written consent.