Hidden Employee Costs with New Hires: Part 2

Most industry analysts believe that the cannabis industry will experience massive growth over the next 18 to 24 months. The Vangst 2024 Salary Guide reports that 86% of cannabis companies plan to hire additional staff this year, and with pending cannabis reclassification the industry’s future is optimistic. Unfortunately, many companies overlook the hidden costs of adding additional staff to their team and are caught off-guard by its impact on their bottom line.

To help companies budget for growth, we’ve broken it down into 3 main areas - Fees, Labor-Management, and Tech Stack. In this post, we’ll be covering Labor-Management.

Recruiting - Finding the perfect candidate can be very time-consuming. To ensure success, companies must allocate the time and resources necessary to manage the entire hiring process including posting the position, reviewing the resumes, scheduling the interviews, conducting the interviews, conducting background checks, and negotiating the pay and benefits.

Payroll - Once an employee has been hired they will need to be paid. Depending on the size, companies must appoint or hire someone to manage their payroll. Their duties typically include developing payroll systems, time-clock management, ensuring policy compliance, paying federal and state payroll taxes and insurance, collaborating with HR and accounting, maintaining records, resolving issues, and ensuring legal compliance and accuracy.

HR/Candidate Management (Help Desk) - To ensure employees' safety, health, and satisfaction companies must assign or hire someone to manage their human resource needs. In addition to maintaining workplace policies, resolving conflicts, and managing schedules, HR/Candidate Management must enforce disciplinary policies by responding to actions that go against the company's rules.

In Conclusion…

Before hiring a new employee, companies should determine who will be responsible for each task and the financial impact it will have on the company. Whether a company hires additional staff or delegates the duties of hiring, running payroll, and managing responsibilities to existing staff - the additional payroll, or reduced productivity should be accounted for before the hiring process begins.

By outsourcing these hiring related duties to specialized firms, like Vangst, businesses can offload these responsibilities and leverage the expertise of professionals who specialize in sourcing and managing top talent. This not only reduces the direct costs associated with recruitment but also frees up valuable time and resources that can be redirected towards core business activities.

If you’re interested in learning how Vangst can be your own dedicated team to handle all these roles, feel free to contact us here.