Despite the pandemic’s impact on business growth, the cannabis industry experienced a surge in profits, with a remarkable thirty-three percent increase in employment, particularly in CBD product sales. However, a challenge looms in the human resources domain for the cannabis sector. Some new CBD business owners opt to manage operations independently, presenting a unique challenge.

CBD strains here are gaining popularity, with consumers seeking unique and diverse options for their cannabis experience. This article is essential to know how the cannabis industry can gain from human resources.

How the Cannabis Industry Can Benefit From Human Resource

Some ways in which the CBD industry can help are through the following:

1. Through Compliance

The cannabis industry has very many regulations. At times, it becomes tough to comply with the set of rules from the government, especially regarding CBD products.

By having a human resource individual, the cannabis business can keep up with the regulations and rules of the industry. They can stay ahead of the company’s hiring, profits, banking, and licensing by keeping up.

Efficient human resources can help the cannabis business comply in the following ways:

  • By adhering to the wages and hours of the state which people follow
  • Following the safety rules of a workplace
  • By classifying contractors and employees well

In addition, a dedicated human resources team ensures that the company not only follows regulations but also proactively anticipates changes in compliance, mitigating potential risks and maintaining a solid legal standing.

2. Through Payrolls

The cannabis industry can be very tricky to operate because of laws within states. Though people can operate the cannabis business within state requirements, it is not so at the federal level.

Payroll management is a difficult task. It is hence essential for human resources to come into play. The human resource people ensure that employees are paid on time and paid legally.

Human resources may also constitute an online system that may automatically help with tax reductions. This process, in turn, reduces time.

Moreover, an efficient human resources team not only ensures legal compliance in payroll but also implements streamlined payroll systems, reducing the administrative burden on the company and ensuring accuracy in financial transactions.

a man standing while shaking the hands of a woman who is sitting

3. Through the Hiring Process

The cannabis industry has continued to grow over the last few years. The growth has led to an increase in the number of people business people should employ in the industry.

However, the process may be complicated and expensive when finding the best employees with experience dealing with cannabis. An excellent human resource group needs to be available to help a cannabis business select the best employees.

Furthermore, a proficient human resources department plays a crucial role in streamlining the hiring process, conducting thorough screenings, and ensuring that the selected candidates not only meet the job requirements but also align with the company’s values and objectives.

The hiring process through the human resource department may constitute the following management duties:

  • Candidate Sourcing: Strategically identify and attract potential candidates through various channels, including job portals, social media, and professional networks.
  • Screening and Shortlisting: Conduct initial assessments to shortlist candidates based on their qualifications, experience, and alignment with the job requirements.
  • Interview Coordination: Organize and facilitate interviews, ensuring a smooth and efficient process for both candidates and hiring managers.
  • Assessment and Testing: Implement relevant assessments or tests to evaluate candidates’ skills, knowledge, and suitability for the position.
  • Reference Checks: Conduct thorough reference checks to verify candidates’ professional background, performance, and reliability.
  • Offer Negotiation: Collaborate with hiring managers to extend job offers, negotiating terms and conditions in line with company policies and budgetary constraints.
  • Onboarding Support: Facilitate a seamless onboarding process for new hires, providing necessary information, resources, and support during their transition into the organization.
  • Compliance Management: Ensure adherence to legal and organizational policies throughout the hiring process, minimizing risks and promoting fair and unbiased practices.
  • Talent Pool Management: Build and maintain a talent pool for future hiring needs, keeping track of potential candidates for different roles within the organization.
  • Continuous Improvement: Regularly evaluate and enhance the hiring process, incorporating feedback from hiring managers and candidates to optimize efficiency and effectiveness.


The strategies presented highlight the critical role that HR can play in guiding the cannabis industry—and the CBD sector in particular—along the path of sustainable growth and compliance. The complex problems created by strict regulations necessitate a proactive approach, and the strategic addition of a human resources team is one way to address these problems. In the cannabis industry, human resources play a crucial role in various aspects of business operations such as payroll management, hiring process optimization, and compliance with intricate legal frameworks.

An effective human resources department is becoming increasingly important as the cannabis industry continues to grow and expand. The broad scope of HR’s contributions is demonstrated by the management responsibilities that are outlined, which range from finding candidates to continuously improving the hiring process. Cannabis businesses can position themselves for long-term success in this dynamic and evolving market by adopting these HR strategies, which will help them not only navigate the industry’s complexities but also cultivate a compliant and resilient organizational culture.

Leave a Reply

Your email address will not be published. Required fields are marked *