Bryan Passman is the Founder of Hunter + Esquire, a cannabis industry talent acquisition firm.
Ezra Bailey
The differences between the pre-pandemic and current cannabis landscapes are certainly being felt already by those in the industry and those looking for entry. We have seen a lot of good leadership talent leave their cannabis employers due to cost-cutting measures, and the pause button has been hit on the leadership hiring frenzy that we witnessed in recent years leading up to a few months ago.
A majority of cannabis businesses are weathering the storm and even growing and thriving in many cases, despite the pandemic accelerating the number of cannabis economic challenges that were already underway. The capital crunch that started in the second half of 2019 was already causing companies to shift their focus from generating top-line growth at any cost to creating bottom-line profitability. Smaller entities were seeking to scale via mergers with peers and acquisition by larger entities. Larger entities were seeking ways to acquire smaller competitors or run them out of business.
Consider some of the significant leadership challenges brought on by the pandemic: the disruption of global supply chains, changes in consumer buying behavior as we enter a recession/depression, diminishing access to capital and increasing rates of M&A/consolidation. These new challenges require a higher level of leadership than what had been needed in the past for cannabis companies to survive and thrive. Smart companies will use this time to upgrade their leadership by enhancing the capabilities of the leadership talent they already have in place. They will also recruit top leadership from adjacent industries that, unlike the cannabis industry, are not expecting double-digit growth through an economic downturn.
With over 40 million Americans filing for unemployment benefits as of June 4, talent seeking their first or next opportunity within the industry will face an even greater surplus of competition for a seat on the cannabis economy bus. This is good news for organizations looking to level up on talent or simply fill vacated or newly created roles with top talent. As such, many organizations are wondering how to get started. Here are a few suggestions to help you evaluate your current needs and determine your next steps:
1. Perform a companywide talent audit comparing future talent needs (Will you need an experienced M&A pro in three months?) against existing talent (Is the sales pro you promoted into that role your best choice?).
2. Fill talent gaps.
3. Improve the commitment to outstanding people engagement.
This dynamic also sets the stage for potential abuse of position in this supply-and-demand model where companies know they have the upper hand and may potentially drop the ball during the hiring and onboarding process. I want to believe the U.S. will have its "Cannabis 2.0" moment when we emerge from this crisis, with a bounty of opportunity ahead and an improved focus by American cannabis businesses in terms of scaling and operating more mindfully, especially when it comes to the people. This is where I would love to see the Cannabis 2.0 moment begin: with an excellent opportunity to improve how people with power treat people despite the position they hold over the growing pool of unemployed talent. A positive boost to your corporate brand impression with talent (a.k.a. consumers and investors) is a pretty great byproduct of treating people as you should.
Organizations looking to hire new leaders will need to be acutely aware that the way they handle the hiring and onboarding process ultimately communicates to these individuals how you want them to lead, motivate and nurture your teams moving forward. This only adds pressure to those in hiring roles to ensure that they're setting the stage for the type of organization they want to create and be known for and to ensure they're hiring the best individual for the role based on the company needs and goals.
This cannot be accomplished effectively without a buttoned-up process. If not in place already, now is a great time to shore up your human resource operations with the installation of an applicant tracking system to effectively manage the influx of incredibly talented human capital coming your way. Make improvements to your hiring process. Standardize employee onboarding processes and training protocols, or finally hire a strategic human capital leader to your organization. These areas have been glaring weaknesses of too many rapidly growing cannabis companies over the years, and now is not the time to let it slide.
Too much is at stake for companies coming out of the pandemic and looking to make a significant move in the industry. Covid-19 forced many companies to flex their creative problem-solving muscles to effectively pivot and adapt. Organizations with a keen understanding of essential leadership qualities and the importance of team collaboration, and employees who understand their roles in the success of the company, along with the ability to exercise critical thinking, will be one step ahead.
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