Marijuana Business Magazine April 2019

Marijuana Business Magazine | April 2019 46 “I’ve seen extractors get placed for as little as $60,000 if they’re doing just simple butane extraction. And I’ve seen people with Ph.D.s who can do a new extraction method, and they’re getting $180,000 per year,” Yagielo said. “In extraction especially, I’ve seen a wide range of experience, talent and salaries. Figuring out an industry standard for extraction salaries will take a while.” Salaries of high-level workers can also be expected to increase as facilities grow and staff become responsible for a greater number of plants, increased extraction production and rising sales quotas. The compensation picture is also bright for entry- and lower-level workers. While those open positions fetch hundreds of resumes, most candidates who get the jobs can expect the same or better compensation as comparable jobs in other sectors. For example, budtenders make more money than bartenders, retail salespeo- ple and pharmacy aides. Trimmers do better than agricultural crop graders and sorters and greenhouse or crop workers, while edibles workers are better paid than bakers, general food processors and cooking machine operators. SALARY CLOUDS To be sure, not everyone believes marijuana industry salaries are better than those in other industries. In fact, the high cost of doing business in cannabis— for example, steep compliance fees and taxes that are pricier than those in other sectors—drives salaries down. “In certain markets, because of the cost of compliance, because of the taxes, you just don’t see salaries at the same level as you would in similar industries,” said Kara Bradford, CEO of Viridian Staffing, a cannabis recruitment firm in Seattle. In some cases, she added, the marijuana industry pays less than other industries because of a mix of factors beyond regulatory costs and taxes. The oversupply of cannabis—particularly in western markets such as California and Oregon—is forcing down prices and eroding company margins, leaving less money for salaries and even resulting in layoffs. “In markets with lots of supply…we’re seeing layoffs and people taking salary cuts,” Bradford said. “It’s business owners looking at their margins and saying, ‘How are we going to stay in business?’” Because salaries are a big expenditure, they are often cut as a cost-savings measure. Yagielo agreed, noting that as companies see margins shrink, they’ll often let go of a more expensive senior employee and replace that person with someone younger and willing to work for less. “Companies will pay a high salary for a couple of years and then realize they don’t need to pay that high of a salary because someone else can do the same for a lower salary.” Bradford also said cannabis companies have been more likely to offer higher compensation early in their existences to woo job candidates but then cut salaries after a market has hit its stride for about 18 months. “We see a dip and evening-out in markets,” Bradford said. Nevertheless, new markets continue to open, creating fresh jobs in the cannabis industry. In most markets, that means salaries will continue to rise. “We definitely think they’ll contin- ue to grow over the next few years. As companies start to enter this next phase of growth—where they have to hire for growth and bring in senior management and the best-of-the-best talent—salaries are going to continue to grow,” Vangst’s Humiston said. Portion of cannabis employers offering medical insurance, according to a Vangst survey of 1,200 businesses. Of the surveyed businesses, 51% offer dental insurance, 46% offer vision insurance and 46% offer all three. Almost a third—29%—offer employees a 401(k), while 21% of surveyed businesses offer no benefits outside of salary. 71% Proportion of cannabis job openings for professional and technical workers in December 2018, according to Glassdoor. 53% For startup businesses, offering stock options can be a way to recruit and retain employees. Salary Survey