Employee Turnover Rate Comparison: Small Businesses vs. Cannabis Industry

Small Businesses:

  • The average employee turnover rate for small businesses ranges from 10% to 12%, depending on the source and methodology used.
  • Sources like SHRM and American Express state these figures [Source 1, Source 2].

Cannabis Industry:

  • The employee turnover rate in the cannabis industry is significantly higher than small businesses, often reaching 40% to 60% within the first two months of employment.
  • This information is based on reports and resources from the National Cannabis Industry Association and Headset Cannabis Intelligence [Source 3].

Key takeaways:

  • Small businesses: Experience a moderate turnover rate, highlighting the challenge of retaining employees.
  • Cannabis industry: Faces a much higher turnover rate, posing a major hurdle for businesses in this rapidly growing sector.

Possible reasons for the difference:

  • Lower wages and limited benefits: In the cannabis industry, these factors can make it difficult to attract and retain talent compared to other sectors.
  • Lack of established career paths: The relatively new and evolving nature of the cannabis industry may not offer clear career progression opportunities for employees.
  • High demand for skilled workers: As the industry grows, the demand for skilled workers outpaces the available talent pool, leading to job hopping and higher turnover.

It’s important to note: These are general trends, and specific turnover rates can vary within both small businesses and the cannabis industry depending on factors like location, company size, and specific job roles.