Green Growth: Maximizing Savings, HR Support, and Talent Retention in Cannabis Companies
In the cannabis industry, companies face unique challenges in providing comprehensive employee benefits packages while managing compliance with state regulations and navigating complex ownership structures. Many cannabis businesses rely on large payroll companies for their benefits administration, unaware that they may be missing out on savings and the opportunity to offer tailored health benefits to their employees. For cannabis companies, there may come a time where a benefits broker can help close the knowledge gap and provide you with insight to make the best decisions for your employees.
My company is one among many brokerages that provides services like this, and this article can help you delve deeper into what you should know when choosing a broker in your state that works best for you and your unique needs.
1. Personalized Service Is Paramount
A benefits broker can offer more than just a transactional relationship; they can provide personalized attention, including annually reviewing rates and hosting enrollment meetings for employees. This hands-on approach not only communicates the company’s significant investment in its employees’ well-being but also fosters a sense of value and appreciation among the workforce. Employees can feel heard and supported when their benefits are explained in detail and can have their questions answered at an annual open enrollment meeting.
2. Understanding the Intricacies of the Cannabis Industry Is Crucial
Unlike large companies that may lack familiarity with the unique regulatory environment of cannabis, a good benefits broker specializes in navigating the complexities of state licensing and ownership structures. By consolidating benefits under a single group with groups that qualify, brokers can optimize coverage and reduce costs, particularly for companies operating in multiple states with varying enrollment periods and rates. This streamlined approach alleviates the burden on managers trying to manage five or six different open enrollments in one company.
Moreover, benefits brokers can offer comprehensive HR and compliance support, ranging from Employee Retirement Income Security Act (ERISA) and Affordable Care Act (ACA) reporting to setting up Section 125 plans and managing Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). By outsourcing these functions to experts, cannabis companies can focus on their core business activities while ensuring regulatory compliance and minimizing the risk of costly penalties.
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In addition to regulatory compliance and cost savings, benefits brokers help enable cannabis companies to differentiate themselves as employers of choice. By offering creative benefits such as pet insurance and international trip insurance, which are highly valued by employees, companies can support attracting and retaining top talent without incurring additional costs. This strategic approach to employee benefits not only enhances the company’s reputation but also contributes to a positive work culture and employee satisfaction.
5. Integrated Technology Solutions
A reputable benefits agency offers advanced technology solutions for streamlined benefits administration. Utilizing centralized systems, employees receive personalized enrollment emails detailing their benefits and costs per pay period. This technology seamlessly transfers information to each carrier, facilitating enrollment in multiple benefit categories. Moreover, integration with payroll companies provides a one-stop solution for all HR needs. Benefits brokers, compensated by carriers, offer their services at no cost to employers. It’s a choice between personalized service and efficient technology integration, versus the frustration of generic service lines.
6. Integrating Technology and Personalized Service for Seamless Operations
While personalized service is essential, it’s equally crucial not to overlook the benefits of integrating technology into benefits administration. A reputable benefits broker can seamlessly integrate with payroll companies, offering a one-stop solution for all employee benefits needs. This integration ensures that everything from enrollment to payroll deductions is handled efficiently within a single platform. Moreover, benefits brokers are compensated by carriers, meaning their services come at no cost to employers. By choosing a benefits broker over a generic 1-800 number, companies can access personalized service and advanced technology without sacrificing affordability. It’s a choice between attentive support and frustration-inducing delays.
Cannabis companies often advocate supporting craft grows, small business, and social equity-owned brands of cannabis. We should be equally mindful of the ancillary companies we hire, opting for an independent benefits agency that supports our industry, supporting small, women-owned, or Black-owned businesses. Or perhaps it’s important to you to support an agent who’s actively lobbying. As part of the social justice movement, our business choices should promote drug war reform. Choosing service providers engaged in ending the drug war reflects a company’s commitment to justice and equity.
I’ve worked with many cannabis companies as a benefits agency over the last decade, and I find they are often led by entrepreneurs without extensive business experience, who are often drawn to one-stop shopping solutions. Relying solely on large companies that don’t understand our industry can result in unnecessary expenses and frustration. By partnering with a dedicated benefits broker, cannabis businesses can access personalized service, industry expertise, advanced technology and cost savings — all while streamlining operations and enhancing employee satisfaction. It’s an investment in the long-term success and sustainability of the company. It also allows companies to choose ancillary partners that support the industry.