Committee Blog: Embracing Pay Transparency and Equity in the Cannabis Industry

Published by NCIA’s Human Resource Committee (HRC)

Authroed By: Melita Balestieri, SVP Marketing & Business Operations, Higher Growth Search

In recent years, cannabis companies across the United States have been called upon to adopt greater pay transparency and pay equity practices. For businesses in this rapidly evolving industry, understanding these concepts can lead to attracting top talent, improving employee engagement, and ultimately building a strong brand. If you’re a cannabis company considering implementing these practices, this article explores how they can benefit your organization.

Understanding Pay Transparency, Pay Equity, and Pay Range

Pay Transparency:

Pay transparency involves openly sharing compensation information with both current employees and potential hires. It can take various forms, from discussing pay with individual team members as needed to publicly disclosing pay information for specific positions. Additionally, pay transparency includes providing a salary range in job listings, giving candidates an idea of earning potential based on qualifications and requirements.

Pay Equity:

Pay equity strives for equal compensation for the same position, regardless of age, race, or gender identity. Legal frameworks support pay equity by addressing unfair pay practices and emphasizing that two people doing the same job should receive the same pay.

Pay Range:

A pay range defines the minimum and maximum pay for a particular job. Offering a realistic pay range enables candidates to make informed decisions and helps employers attract employees whose compensation expectations align with the offered salary.

The Cannabis Industry Case for Pay Transparency and Pay Equity

Historically, many cannabis companies did not openly discuss compensation, but embracing pay transparency and pay equity can bring numerous benefits.

A transparent and equitable environment can boost employee satisfaction, retention, career pathing success, and productivity. When employees feel fairly compensated and valued for their contributions, they are more committed and less likely to seek other opportunities, reducing costly turnover.

Human resources teams often lead these initiatives, but the involvement of executives and decision-makers is essential for successful implementation. Collaboration between HR and leadership is key to creating policies that promote fairness and transparency, enhancing employee satisfaction and retention.

A Pay Transparency and Pay Equity Strategy for Your Cannabis Company

Implementing pay transparency can be complex, but following a step-by-step strategy can simplify the process:

1. Analyze, Evaluate, and Correct the Current Pay Structure: Begin by assessing your cannabis company’s current pay structure, identifying pay disparities, and addressing any issues.
2. Develop a Pay Transparency Policy: Create a clear policy outlining your commitment to pay transparency and guidelines for determining pay.
3. Communicate the Policy: Share the policy with all employees, explaining its details and providing examples of how it works.
4. Provide Training and Support: Train managers and HR staff on the policy’s implementation and ensure they have the necessary resources.
5. Monitor and Adjust: Regularly review the policy’s implementation and adjust based on feedback.
6. Evaluate and Improve Pay Equity: Continuously assess and improve pay equity within your cannabis company.

A Worthwhile Effort for Cannabis Companies

While implementing pay transparency and equity strategies may initially seem daunting, their benefits can significantly impact hiring and retention efforts, team cohesion, employee satisfaction and overall business success. In the rapidly evolving cannabis industry, these practices can set your company apart and help it thrive.

For more information on how embracing pay transparency and equity can benefit your cannabis company, reach out today.