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LRS Now Offers More Retirement Plan Benefits for Cannabis
Companies in the cannabis industry can now legally add a Defined Benefit or Cash Balance Plan to their employee benefits package and start saving money! Having seen great success with the Leading Cannabis 401(k)™, LRS has teamed up with veterans from the financial service sector to launch the Cannabis Cash Balance Plan; a trustee directed retirement plan solution for organizations operating in the cannabis industry. By partnering with an approved retirement plan custodian, the new strategy supports Defined Benefit, Cash Balance, and other Trustee Directed Retirement Plans. With nationwide availability this solution overcomes the traditional barriers cannabis companies face when looking to implement a legal retirement plan.
Now is the Best Time for the Cannabis Industry to Consider Employee Benefits:
As you are well aware by now, government officials have recently deemed cannabis companies as “essential” business. With this new classification, Cannabis has become one of only a few industries permitted to remain open and continue operations. As a result, dispensaries are being flooded with pickup and delivery orders as Americans are using the healing benefits of cannabis to cope with the high levels of stress and anxiety related to COVID-19.
To keep up with the rising demand, many cannabis companies are looking to ramp up hiring efforts to ensure their staff does not feel overwhelmed. However, past research has shown that since the legalization of marijuana in various states, cannabis companies have struggled to attract and retain workers. In general, cannabis companies have experienced significantly high turnover rates, with workers only staying with a company for an average of two months before moving on.
Research has shown that employee benefits play a major role in attracting and retaining talent. Offering benefits to your employee demonstrates that you are invested in their overall well-being and that you care about their financial futures. According to the 2019 Work Institutes Retention Report, nearly 90% of individuals ages 18 to 34 prefer benefits over increased pay. This is particularly important for cannabis executives and owners to keep in mind considering a majority of worker in the cannabis industry are under the age of 30. In today’s market, compensation based entirely on salary is simply not going to suffice. Cannabis companies need to seriously consider implementing employee benefit packages.
In addition to healthcare and paid vacation time, 401(k) plans are among the most sought-after benefits employees are seeking right now. Workers want the ability to invest in their financial future, and retirement plans, like 401(k)s and Cash Balance Plans, are a great way to do just that. Offering these benefits to your employees not only helps your company stand out from the competition, but it allows your company to stay ahead of the curve.
Considering several states have recently classified cannabis as essential, many politicians believe federal legalization is just around the corner. When that becomes a reality, offering employee benefits will no longer be optional; it will be a requirement to remain competitive.
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Leading Retirement Solutions:
For over 5 years, Leading Retirement Solutions has served numerous cannabis companies with their retirement plan needs. With more experience in the cannabis industry than any other retirement plan administration company, LRS develops business solutions that minimize taxation, manage risk, ensure regulatory compliance, all while building and protecting your wealth. By implementing a retirement plan, companies in the cannabis industry can even take advantage of tax credits and tax deductions.
