Operations managers are vital to the success of any company. They are responsible for overseeing the production of goods and services. Their main role is to ensure efficiency, that operations are running smoothly, and that policies and procedures are being followed correctly. As such an important position, operations managers are generally very well compensated.
What Does an Operations Manager Do?
The main responsibilities of an operations manager include:
- Overseeing production processes and staff
- Ensuring efficient use of resources and budget
- Improving processes and policies
- Meeting targets and goals
- Monitoring supply chains and logistics
- Identifying areas for improvement
- Implementing new systems and procedures
- Coordinating maintenance and repairs
- Ensuring compliance with regulations
- Managing operations staff and providing training
Operations managers have a bird’s eye view of all business operations. They analyze data and metrics to spot inefficiencies. When they identify issues, they work to resolve them. They aim to maximize productivity and minimize costs. This helps companies be as lean, efficient, and profitable as possible.
Operations Manager Salary
According to the United States Bureau of Labor Statistics, the average annual salary for operations managers in the US is $78,880 per year. The salaries can range quite a bit based on factors like industry, experience, and location. The top 10% of operations managers earn more than $149,120 annually.
Some of the industries that pay operations managers the highest salaries include:
- Oil and gas extraction: Average salary of $98,500
- Scientific research and development services: Average salary of $96,160
- Computer systems design services: Average salary of $94,400
- Software publishers: Average salary of $93,260
- Mining: Average salary of $92,460
Location also has a major impact on operations manager pay. Some of the top paying states include:
- Massachusetts: Average salary of $105,640
- New Jersey: Average salary of $104,840
- Connecticut: Average salary of $103,720
- New York: Average salary of $97,570
- Delaware: Average salary of $96,980
As you can see, operations manager salaries can vary significantly. Those working in high paying industries and states can make well above the national average.
Qualifications and Skills
Becoming an operations manager requires the right mix of education, experience, and skills. Most larger companies require operations managers to have a bachelor’s degree in a field like business administration or operations management. Many also require or prefer a master’s degree. Degrees in engineering, analytics, or supply chain management are also valuable.
In addition to education, a solid background working in operations is essential. Many operations managers have at least 5 years of experience before moving into the role. Working as an operations analyst or supervisor first provides necessary insights.
Operations managers need a diverse skillset including:
- Leadership and management skills
- Critical thinking and problem solving
- Data analysis
- Supply chain and logistics expertise
- Strong communication and interpersonal abilities
- Knowledge of operations best practices
- Project management skills
- Change management experience
- Familiarity with systems, software and tools
The most successful operations managers have the ability to see the big picture while also diving into the details. Analytical, organized, and strategic thinking is a must.
Highest Paying Operations Manager Jobs
Which companies pay their operations managers the most generous salaries? While pay can vary significantly, some of the highest paying operations manager job opportunities include:
Company | Average Salary |
---|---|
Apple | $170,000 |
$167,000 | |
Microsoft | $159,000 |
Amazon | $158,000 |
$156,000 |
As you can see, top technology companies like Apple, Google, Microsoft, Amazon, and Facebook tend to offer the highest salaries. Their operations managers earn well above the national average.
Some other industries and companies that pay operations managerslucrative salaries include:
- Investment banks and hedge funds: Salaries often exceed $150,000
- Management consultancies: Like McKinsey, Bain & Company pay $140k+
- Private equity firms: Such as KKR and Blackstone, pay over $130,000
- Hospitals and healthcare: Salaries can surpass $100,000
- Energy companies: Such as Chevron, Shell, BP, offer $100k+ salaries
How to Increase Your Salary
For operations managers looking to increase their earning potential, here are some tips:
- Consider specialized certifications like CSCP or CPIM to advance your expertise
- Obtain a master’s degree in a relevant field
- Gain experience in coding, data analytics, and software
- Take on special projects and demonstrate initiative
- Manage larger teams and budgets to showcase capabilities
- Transition into a VP of Operations role at a larger company
- Move into a high paying industry like tech, finance, or healthcare
- Relocate to a top paying metro area like San Francisco or New York
With the right combination of education, experience, and skills, operations managers can earn well into the six figures and beyond.
Conclusion
In summary, operations managers play a critical role in organizations, overseeing the execution of day-to-day activities. As such an integral part of business operations, they are well compensated. While the average operations manager salary is around $80,000, those working at leading companies and in high paying industries can earn over $150,000 annually. With the right career moves and qualifications, operations managers have fantastic potential to be some of the highest earners in business management.