Even though many operations managers’ report a great deal of job satisfaction, few people would deny that salary is an important factor in their overall job fulfillment. Because salary is such an important factor, especially nowadays, we will discuss a few facts about salary that people have to know,
It is all about location, location, location
When talking about the main element for pay, it is not necessarily the specific employer and experience level (even though those are driving factors) that decide the pay for an operations manager. The highest salaries are found in the metropolitan areas of New Brunswick, Edison, New Jersey, and Newark – all in New Jersey. Two other important factors include New York City and the Bridgeport, Connecticut area.
For a business operations manager the highest salaries include:
- Trenton, New Jersey –$166,080
- Newark, New Jersey – $163,240
- New Brunswick, New Jersey – $162,870
- Bridgeport, Connecticut – $162,140
- New York City – $161,690
Other great places to be include Houston (approximately 37 percent above the national average,) San Francisco (30 percent above the national average) and Chicago (19 percent above the national average). Meanwhile, Austin (7 percent below the national average) and Orlando (8 percent below the national average) are places that an operations manager may want to reconsider.
Your base salary is not all that matters
Remember that an operations manager is often paid more than just his or her direct salary. Some of the largest paychecks in operations management are achieved because of profit sharing and bonuses. These incentives only serve to motivate professional operations managers even further, because their influence can help with how well the company performs. In fact, some of the figures seen included almost $15K from profit sharing and $16K from bonuses in some of the higher-paid positions.
It is a high-paying profession – but it can vary
According to the U.S. Bureau of Labor Statistics, being an operations manager means that you are a part of one of the highest-paying occupations. However, the fact is that your average can fluctuate rather wildly. Whereas the lowest-paid operations manager earned somewhere around $46,190, the top 10 percent of operations managers would go on to earn more than $187,199 per year. Even though this is factoring in a number of bonuses, it should still be obvious that this means a great deal of discrepancy in earnings amongst different operations managers.
Master’s degree vs Bachelor’s degree
Surprising enough, the amount of pay that someone gets directly out of college is not that different, but the position and responsibility may vary. This is going to depend on a number of different factors. Someone who enrolls into operations management with a Master’s degree may be able to ‘skip ahead’ some tenured positions. Even though the pay scale is similar, it just means that someone with a Master’s degree may be able to move ahead much faster, giving him or her a far higher-paying position.
In addition, having a Master’s degree means that someone may be able to accelerate up the corporate ladder much faster than otherwise believed possible. This means that they have the option to move ahead whereas people with a bachelor’s degree remain stagnant for far longer.
As you can see, there are several different factors that go into the salary of someone in operations management. You want to make sure that you always make the smartest choice for yourself, whether you are just getting started in operations management or you have been a part of operations management for years now. These are just a selection of the operations management insights. To learn more about careers, jobs, interview abilities and other essential skills in operations management and determine your potential future path, make sure to read “Interviews with Masters of Operations Management.”