Behind the Cannabis Curtain: Why Retention Is a Crisis in Cannabis – Featuring CHNANY Member Marci Montoya of Vensure HR/Canopy HR

The cannabis industry may be booming, but operators know that growth alone doesn’t guarantee stability. One of the toughest challenges facing the sector today is keeping employees. High turnover among budtenders, cultivators, and operations staff not only drives up costs but also disrupts culture and customer experience.

So what’s driving the problem? Several systemic challenges make retention uniquely difficult in cannabis:

Federal Prohibition Complicates Benefits

Because cannabis operates in a federal gray zone, companies struggle to access banking, insurance, and tax deductions. This makes it difficult to provide the competitive health care and retirement benefits employees expect—and without those basics, retention suffers.

Cash-Heavy Operations Create Friction

Without access to electronic payment systems, many cannabis businesses still run largely on cash. That complicates payroll and benefits administration, creating inefficiencies that frustrate both employees and management.

Thin Profit Margins Limit Investment

Between compliance costs, licensing fees, and market saturation, cannabis companies operate on razor-thin margins. With so much pressure on the bottom line, it’s tempting to cut back on employee perks, development, or training—all of which are key to retention.

Burnout and Lack of Support

Many cannabis workers face long hours, minimal PTO, and few, if any, health benefits. Burnout quickly follows, leading to low morale, decreased productivity, and high turnover. Without intentional efforts to support employees, operators risk a constant cycle of churn.

Reputation Risk for Employers

Companies that don’t invest in their people face more than operational challenges. Neglecting employee well-being can damage an employer’s reputation, making it harder to attract talent and easier for competitors—inside and outside cannabis—to lure staff away.

“Retention isn’t just about paychecks—it’s about building a culture where people feel valued, supported, and part of something bigger,” says Marci Montoya, Business Consultant with Vensure HR/Canopy HR.

Finding a Way Forward

The good news is that solutions exist. From streamlining payroll and benefits to creating real career pathways, operators can take steps that build loyalty and reduce churn. Culture, communication, and compliance all matter—but at its core, retention comes down to showing employees that they have a future in cannabis.

Employee retention may not make headlines like new dispensary openings or product launches, but it is one of the most pressing issues in cannabis today. For operators, putting people first isn’t just good HR—it’s a competitive advantage.