This is part of a regular series of MJBizDaily interviews with major THC industry players. To be considered for an interview, contact editorial@mjbizdaily.com.
For Karson Humiston, founder and CEO of Denver-based cannabis staffing firm Vangst, the upcoming outdoor harvest season is the busiest stretch of the year.
Dubbed “Croptober,” the stretch from Sept. 15 to Nov. 15 drives cannabis cultivation operators to staff up fast.
And Vangst helps fulfill their needs.
Growers need anywhere from 10 to 200 extra workers to bring in the crop, Humiston told MJBizDaily in a recent interview. Overall, Vangst expects to issue 10,000 IRS Form W2s this year.
No other time of the year comes close, she added.
The upshot is good news for workers.
“Everybody is fighting for the same workforce, especially if you’re in a remote location,” she said.
“We started recruiting people in the spring, letting them know we have a big job coming up for them in the fall.”
For outdoor cannabis operators who need reliable people on site for the Croptober harvest season, hiring must start now.
Some operators assume they can handle staffing on their own. They then find themselves short-handed at the worst possible time, she said.
But the hiring competition doesn’t stop once harvest begins.
Poaching is common, with some growers losing workers mid-harvest when a competitor pulls them away, Humiston said.
What’s the biggest staffing challenge facing cannabis operators?
It’s not just one type of job that’s difficult to fill. It’s the sheer number of workers needed all at once, said Humiston, a panelist at MJBizCon 2024.
The trick is to find people who show up reliably and finish the season.
“Getting a large quantity and having them have some experience and have them show up every single day for the duration is the hardest part,” she said.
Traditionally, workers hired for short-term roles during harvest season earn minimum wage, which ranges from the federal minimum wage of $7.25 per hour to as high as $16.90 in California.
That means retention is challenging.
Actual harvest-season pay depends on state and location, but paying slightly above minimum wage attracts higher-quality people, Humistan said.
Operators must account for that reality when they set expectations for temporary staff, she said.
Cannabis cultivators who want reliable, experienced hands for a tight window should offer higher rates rather than settling for whoever shows up, Humiston said.
How has price compression affected employment?
Price compression and consolidation have squeezed margins for cannabis operators across the industry.
Even so, because labor remains a necessity, Humiston said growers haven’t slashed what they spend on their workforce.
Without an efficient workforce, operators can’t drive down cost per pound. That makes quality staffing a must-have, Humiston said.
Vangst positions itself as a premium option, paying temps a bit more to secure workers who produce more per hour.
The seasonal work serves as an audition that can lead to full-time employment for many Vangst temps.
Between 10% and 15% of Vangst temps convert into full-time, year-round roles at the companies they work for during the harvest season.
How has the industry changed since Vangst started?
Humiston said that approach shapes the quality of talent the company attracts. Workers who see a path to long-term stability tend to bring more to the job.
The model also sets Vangst apart from many of its competitors. Some temporary staffing agencies require workers to sign contracts barring them from joining a client company directly and charge fees if they do, Humiston said.
Vangst takes the opposite route.
Under the staffing agency’s model, someone working as a trimmer can join a client company after 360 hours, giving the operator time to know whether a worker is a good fit.
If a worker doesn’t perform, the operator simply asks that the person not return.
“We’re not trying to hold onto our workers forever,” Humiston said.
“They can try before they buy. We’re trying to help our customers build a workforce.”
That philosophy traces back to why she started the company in 2016. Humiston wanted to give workers an entrance to the industry – and a way up. She didn’t want to lock them into temp roles indefinitely.
The market looks different than it did in 2016. Back then, working in cannabis was a novelty.
Now, it’s an established career path.
What’s next for Vangst?
Vangst has expanded beyond cannabis into agriculture and skilled trades, operating under a farm labor contractor license. A worker outside Los Angeles might work on a pepper farm one week and a cannabis farm the next.
“Businesses are more established, and workers are more willing to take these kind of jobs,” Humiston said.
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And temporary workers hired during “Croptober” harvest season have plenty of opportunities to advance.
Humiston recalls one worker starting in general labor at minimum wage, moving up to lead, then supervisor, then general manager before the company president recruited him as an executive assistant.
He went from minimum wage to six figures.
“He was so reliable, so on top of it and knew every job in the business,” Humiston said.
“We have countless stories like that.”
Conversations like this will continue at MJBizCon, where cannabis executives, investors and policymakers gather to examine the trends shaping the industry’s future. Register for the conference here.
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
