Salaries in Operations Management
Salaries in operations management, just like those in any other profession, are dependent on multiple factors. These factors are qualifications, experience, skills and competency, industry, the geographical location one is working in, and the company that manager is working for.
All those elements combined together, result in situations where two operation managers with the same level of skills and competence would be earning different salaries. For a trainee who is joining a job in operations management, the salaries can vary depending on the type of institute that has given the degree.
Factors that determine the salary
- Qualifications will be an important determinant of the salary in the operations management field. You can reasonably expect that a professional with a formal degree will earn more than one with none. Again, there is this difference between the types of institutes. In other words, an institute that is more acclaimed is more likely to have its graduates earn more than those from relatively lesser known institutes.
- Experience, skills, and competence are of paramount importance, especially for the experienced professionals in operations management. Obviously, the relatively higher experienced individual earns more than someone with lesser experience. One has to show concrete evidence of skills and solid contributions to be able to demand a good salary.
- The region one is working in is also an important determinant of the salary. All regions are not the same when it comes to the cost of living. Obviously, an operations management professional will earn more in a region with a higher cost of living than one in a region with a relatively lower cost of living.
- Another important determinant is the specific pay scales of individual companies. Individual companies are governed by their specific rules about compensation, and salary levels for the same skill, education, and competence level can vary depending on the company.
Salary levels in the United States
Although it may be difficult to point at the precise salary levels that professionals in operations management teams may earn, it is estimated that an operations manager can earn anywhere between $43,151 and $147,986. Please note that numbers bellow do not include VP and other higher level management. The compensation comes with components like salary, bonus, profit sharing, and commission. Let us explore the matter further and see what individual industry types are paying for a job in operations management:
- The Manufacturing and Distribution industry pays compensation between $52,416 and $94,199.
- The Hotel and Hospitality Management industry pays compensation between $43,867 and $74,881.
- The Shipping / Transportation / Warehousing / Logistics / Distribution industry pays compensation between $51,142 and $88,187.
- The Food Service industry pays compensation between $45,142 and $79,187.
- The Construction industry pays compensation between $50,142 and $87,187.
A note for people who are focused on salaries exclusively: you need to focus on developing on your career and excellence, after which high salaries will naturally follow. Develop your skills, and you will soon find yourself working your way up the corporate ladder.