Marijuana Business Magazine February 2019

February 2019 | mjbizdaily.com 75 I t can be difficult for marijuana retailers to keep their top-performing bud- tenders, but the payoff for investing in retention is well worth it. “When you have really engaged, high-performing budtenders who are passionate about what you do and who are passionate about working for your com- pany, they can become brand evangelists,” said Christine Hodgdon, director of hu- man resources at Native Roots, a vertically integrated Colorado cannabis retail chain. Budtender retention is a challenge for many dispensaries. According to Seattle-based business intelligence platform Headset, data collected in Colorado and Washington over a 12-month period showed the average retailer in those states reported 30% budtender turnover. Of that 30%, it also showed that 58% of budtenders in both states quit or were terminated in less than two months, and 40% didn’t even last a month. “All of your customer-facing employees are the face of your company,” said Lilach Mazor Power, the co-founder and managing director of Giving Tree Dispensary in Phoenix. “If they’re happy and they’re staying, that means they’re the best brand ambassadors you can have.” To retain budtenders, you can offer competitive pay, health care, ongoing education and performance incentives. But the key, sources said, is to keep them engaged and make them feel valued. “You can have great products, shops that look nice, but it’s all in vain if your budtenders aren’t happy,” said Ryan Kunkel, the founder and CEO of Have a Heart, a multistate cannabis retailer based in Washington state. “Happiness isn’t something you can measure on the bottom line. A CPA can’t see it. But it’s everything.” Marijuana Business Magazine asked Mazor Power, Hodgdon and Kunkel to share their companies’ strategies for retaining budtenders—and asked their budtenders why those retention strategies matter. Hire the right people . Cannabis knowledge and dispensary experience aren’t as important as hiring for a good fit with a positive attitude and a track re- cord of delivering excellent customer ser- vice, according to Mazor Power. Giving Tree’s weeklong training for budtenders covers cannabis 101, but someone can’t be trained to be the right fit. “I want someone who gets it, who wants to be a part of our company’s mission and vision. If they don’t get it—if they don’t get us —it’s not going to work,” Mazor Power said. Offer health care and supplemental benefits. Giving Tree provides employees health insurance, a 3% matching 401(k) contribution and profit sharing. At the end of the year, the company’s retirement plan managers deposit a percentage of Giving Tree’s annual profits into employ- ees’ retirement accounts based on their hours worked and employment history. “Working in a startup environment is not easy; they’ve earned it,” Mazor Power said. Be transparent. “Have an open-door policy,” Mazor Power advised. “It sounds like a slogan, but when you put it in practice for real, it’s one of the best things you can do.” Mazor Power communicates with employees during office hours and in monthly meetings and quarterly newsletters. She shares sales and patient numbers, information about products and insight on what the next 90 days Giving Tree Dispensary Headquarters Phoenix Number of employees 39 Number of retail stores One retail store and 26 wholesale locations for brands Markets Medical The average marijuana retailer in Colorado and Washington state reported 30% budtender turnover last year, according to business intelligence platform Headset. Of that number, 58% of budtenders in both states quit or were terminated in less than two months. The findings illustrate the challenge retailers have retaining budtenders. Retail executives shared these strategies to boost retention: • During the interview process, ask questions that illuminate behaviors, and hire candidates who are the “right fit” versus candidates who have cannabis industry experience. Also, hire managers who empower their employees. • Offer competitive pay as well as medical, dental and vision benefits that are either employer-sponsored or available through collective bargaining. If you can, contribute to employee retirement accounts, prioritize profit sharing and offer paid time off, too. • Through in-person training or online learning management systems, pro- vide comprehensive onboarding and ongoing education to employees. • Communicate, be transparent and check in regularly with employees. Keep office hours, host quarterly meetings or use preshift huddles to share important information and hear feedback. • Feature budtenders in your online marketing and social media cam- paigns. It will make them feel recog- nized and invested in your brand.