KEY TAKEAWAYS:
- Cannabis companies face significant challenges offering a traditional retirement benefit
- Many states require businesses to offer a retirement plan, including cannabis companies
- Offering a retirement benefit can help your business retain and attract talent and reduce your operational costs
- Introducing benefits to the cannabis space has the potential to further legitimize careers in the industry.
Cannabis companies face a unique set of challenges when it comes to offering traditional retirement benefits. Due to the federal “gray area” in which the industry operates, many retirement plan providers are hesitant to work with cannabis businesses, leaving them without access to crucial retirement options.
State Mandates and Retirement Plans:
Adding to the complexity, a number of states now require employers to offer retirement plans to their employees. This presents a significant hurdle for cannabis companies to find retirement plan providers willing to cater to their specific needs.
Introducing Portable Retirement Plans (PRPs):
Enter Portable Retirement Plans (PRPs), a game-changing solution tailored specifically for cannabis companies. This plan removes regulatory hurdles and is uniquely able to address challenges faced by the cannabis industry. A PRP can be set-up in minutes, is a turnkey plan, doesn’t require federal filing or testing requirements, and is half the cost of traditional plans.
The Benefits of Offering PRP:
Implementing a PRP can have a profound impact on your cannabis business in multiple ways:
- Retain and Attract Talent:
In the competitive landscape of the cannabis industry, attracting and retaining top talent is crucial. Offering a robust retirement plan like a PRP demonstrates your commitment to your employees’ long-term financial well-being. Employees are increasingly prioritizing companies that provide comprehensive benefits, including retirement savings. By offering a PRP, you position your business as an attractive employer, enhancing your ability to attract and retain the skilled workforce needed to drive your company’s growth. - Reduce Operational Costs:
One of the significant advantages of implementing a PRP is its potential to help reduce operational costs. Research shows that businesses offering retirement benefits experience higher employee retention rates. With a stable workforce, you can significantly reduce expenses associated with recruiting, hiring, and training new employees. By investing in your employees’ future, you create a loyal and dedicated workforce, leading to increased productivity and operational efficiency. - Compliance and Peace of Mind:
Navigating the complex landscape of retirement plan compliance and legal obligations can be daunting for any business, especially in the ever-changing cannabis industry. However, with a PRP, you can rest assured knowing that Icon has extensive expertise in retirement plan administration and compliance. Icon stays up to date with the latest regulations, ensuring that your retirement plan remains in full compliance.
How does Wurk and Icon’s Partnership affect Cannabis Companies?
- Introducing Benefits to the Cannabis Space
Wurk, as an HRIS platform, specializes in working with cannabis companies and other industries that have faced similar challenges in accessing comprehensive HR and retirement solutions. Through its partnership with Icon, Wurk enables cannabis businesses to offer best-in-class retirement programs to their employees at a low cost. This collaboration not only helps cannabis companies comply with state retirement mandates but also eases their workload, allowing them to focus on reaching their business goals. - Legitimizing Careers and Reducing Turnover in the Cannabis Industry
The lack of robust benefits, including retirement plans, has deterred many individuals from considering careers in the cannabis industry. However, the partnership between Wurk and Icon is a significant step toward legitimizing the industry and providing longevity for employees. By combining HRIS and retirement planning, cannabis companies can now offer competitive benefits that rival those in other industries, attracting and retaining top talent. This shift has the potential to reduce the high turnover rates commonly seen in the cannabis industry.
At Wurk, we’re dedicated to helping businesses succeed. A PRP is just one of the tools that will help simplify your workload, reduce your costs, and help you achieve your business goals. We’re working with Icon, the leader in PRPs, to help bring this valuable benefit to our customers and legitimize the cannabis industry.
