Hartford Business Journal

This year's study marks a signifi- cant shift in workers' needs over the year. Specifically, the ability to cover monthly expenses jumped to No. 1 in the ranking up from No. 9. Inflation, financial security Seven out of 10 employees say that high inflation and market volatility in 2022 has significantly increased their financial stress and led to reduced spending. One-third of employees have tapped into savings to supplement spending needs. With financial mar- kets and defined contribution plans taking a substantial hit, workers are increasingly more concerned about their ability to retire. This is especially prevalent for lower-income employees who make less than $60,000, with just 25% confident about retirement. Healthcare affordability Inflation has also hit home for employers that offer healthcare ben- efits and their employees who have seen out-of-pocket costs surge. According to Mer- cer's 2022 "National Survey of Employ- er-Sponsored Health Plans," U.S. employ- ers expect health benefit costs per employee to rise 5.6% on average in 2023. The projected increase reflects changes that employers plan to make to hold down cost. Low-wage workers are feeling the brunt, with 36% citing inability to pay co-pays, co-insurance and prescrip- tion drug costs. More than two-thirds of employees say they have chal- lenges getting health care for them- selves and their families. Younger workers, caregivers and LGBTQ employees are even more likely to say they face challenges getting the health care they need. Well-being at work Employees who believe their employer cares about their well-be- ing are less likely to leave their jobs. Yet, 81% of employees feel at risk of burnout, up from an already concern- ing 63% before the pandemic. Concerns over mental health are most pronounced for younger work- ers, women, LGBTQ, Black, Hispanic and Latino workers. Organizations need to take a more holistic approach to managing employee well-being, especially with a distributed workforce. Historically, organizations only focused on access, treatment and coverage of mental health benefits. We see an increase in prevention, support away from work and more support at work as priorities for 2023. Here are some actions employers can take: Support workers on their financial journey. January is Financial Wellness Month. Kick off the New Year by lis- tening to employees' attitudes about financial health. Regularly engage them to deter- mine the right degree of personaliza- tion needed to continue on the path to financial resilience. Focus on steering employees to the right care. Virtual health care, alternative and/or high-performance networks, centers of excellence, or targeted support for members with specific health conditions can all deliver high- value, cost-efficient care. Ease the burden on employees' mental and emotional health. Expand well-being benefits. While much has been done, more is needed. Respect work-life boundar- ies. We are facing a mental health crisis and employers can provide support to help workers get access to the care and resources they need. Companies that try to understand employees' priorities and meet their changing needs will become an employer of choice in tomorrow's job market. Meg Galistinos is a partner and CT leader at consulting firm Mercer. HARTFORDBUSINESS.COM| JANUARY 9, 2023 31 INDUSTRY OUTLOOK | HUMAN RESOURCES INDUSTRY OUTLOOK | CANNABIS CT cannabis industry to reach full steam by end of 2023 By Andrew C. Glassman and Matthew D. Glennon B ased on what we are hearing from the Connecticut Depart- ment of Consumer Protection (DCP), Connecticut's recreational can- nabis industry is on-track to be fully up and running by the end of 2023. Connecticut residents will be able to purchase recreational cannabis in at least a few locations beginning Jan. 10, with more to follow toward the end of the year. Under Connecticut law, adult-use recreational sales can only begin 30 days after the DCP announces that at least 250,000 square feet of culti- vation space (which includes actual growing canopy and manufacturing space) is available for the production of recreational cannabis inventory. On Dec. 9, DCP announced that threshold had been meant as a result of all four existing medical marijuana cultivators having received their hybrid cultivation licenses. The existing dispensaries that have obtained their hybrid sales licenses thus are primed to begin recreational sales. Additional applicants remain in the queue In addition to the approved hybrid cultivators and retailers, the DCP continues to be busy with approv- als for lottery winners, cultivators purchasing licenses for cultivation in disadvantaged areas, and equity joint ventures between existing hybrid license holders and social equity qualified individuals. This group of potential licensees, most of which are in the provisional license stage, will be new to Con- necticut's cannabis industry. Among this group are the social equity appli- cants as well as non-social equity applicants who have won the lottery. When the dust settles, it is likely that as many as 12 retailers, four micro-cultivators, 10 delivery com- panies, four hybrid retailers, 10 food and beverage businesses, six pack- agers, six product manufacturers, four transporters and 24 additional cultivators (with at least 15,000 square feet of production plant capacity), plus equity joint ventures, will join the industry to provide the full services necessary to properly supply retail cannabis consumers. We will only know the actual num- ber of permanent license holders after each new applicant completes its 14-month provisional licensing process, and each successful appli- cant receives its final license. Because this provisional licensing process is well under way, it is likely that most of these applications will be completed and phased into the program throughout 2023. Real estate challenges Finding suitable real estate in towns friendly to this industry will continue to be a chal- lenge for licensees. While many towns continue to prohibit cannabis opera- tions, others have welcomed them. Several towns that were reluctant to allow the siting of facilities have begun to indicate a greater will- ingness to accept such applicants. Yet, in some communities, such as Fairfield County and greater Litch- field, voters continue to affirm that cannabis is unwelcome. It still remains unclear how many municipalities will permit cannabis sales, cultivation, special product manufacturing and cannabis ser- vices companies. Even in those towns permitting cannabis busi- nesses, most are creating discrete zones that require applicants to carefully navigate local zoning regu- lations and their siting processes. Employment boon The Connecticut cannabis industry is creating hundreds of new job oppor- tunities to meet the need for retail ser- vice employees, cultivation experts, drivers and administrative staff. Hiring has already begun and will continue to increase as the licensing pro- cess unfolds through- out 2023. Future lotteries The DCP continues to say that once the final licenses have been issued and it has time to evaluate the remaining needs of the industry, it will determine when and if additional licenses should be issued. If there is a need for additional licenses, they will be procured through an additional lottery, or lotteries. We do not expect decisions to be made until a more mature, functioning industry exists, and the determination will almost certainly not be made prior to mid-2023. The national 2022 MJBiz Con- ference in Las Vegas was pulsing last fall with tens of thousands of attendees. It's clear that the cannabis industry is here to stay in our country. Connecticut seems to be opening adult use at just the right moment, with the benefit of lessons learned from earlier states, but still well ahead of many others just starting the process. Andrew C. Glassman is chair of the cannabis, CBD and hemp practice at the law firm Pullman & Comley. Mat- thew D. Glennon is also an attorney in the practice. Meg Galistinos Matt Glennon Andrew Glassman

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