Operations Manager Salary & Pay

(Note: Please note that salaries can differ significantly based industry, experience, and company policies. The above figures are based on estimates taken from glassdoor.co.uk.)

The operations department is one of the core components of any organisation. A business simply cannot function without the operations department being able to produce a good service for delivery to clients. Operations managers are the ones who handle things in the operations department and therefore become indispensable cogs in the corporate machine.

The salaries for operations managers across Europe are indicative of their importance. The operations manager can expect steady salary increments over the course of their careers. Unlike other roles like sales where performance can be highly variable from one year to another, operations managers would usually have performance metrics that are more stable. Although this means that their maximum increment potential for a year might be lower than the revenue-generating teams, it also means that their increments would generally be more stable and consistent.

Profit-sharing, stock options, cash bonus

Some companies offer benefits in the form of stock options or variable compensation for key executive positions. A senior operations manager can be eligible for such programs in certain companies. The variable component for operations managers is usually tied to their key performance indicators like efficiency, cost management, error rates, safety record, risk management, performance during any crises and other such parameters. In addition to cash bonuses, start-ups may even offer profit-sharing programs to their executives as well.

The exact bonus amounts differ from company to company and obviously depend on employee performance. Additionally, they also depend on the performance of the overall team and the company. For most companies, the variable component for operations managers would lie somewhere between 10% to 30%.

Sector-specific considerations

There is considerable variation in operations manager salaries across industries. Global Fortune 500 companies with extremely complex supply chains and business processes require experienced and well-qualified individuals to manage their operations. The salaries that they offer are commensurate with those expectations.

Some of the most lucrative sectors are oil and gas, financial services, insurance, large industrial conglomerates, and tech companies.

Operations manager type roles exist at almost every medium-sized or large company. This means that candidates have a lot of good options for lateral movement. Such movements can often lead to much faster growth in compensation. Professionals working in niche roles do not have as many opportunities for lateral movements and this can be an important consideration for a career spanning several decades.

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