After deciding when to hire a VP of Operations, what to look for in a VP of Operations, and how to hire a VP of Operations, you’ve likely been able to find a few potential candidates. Once you’ve asked some great interview questions, it’s time to start thinking about what to pay a VP of Operations.
It can be difficult to determine what to pay a VP of Operations, and since you’re negotiating salary with a professional that is very good with operating numbers – it can be difficult to find a salary number that’s fair for both sides. Here are four factors your company needs to consider when negotiating salary with an operations leader.
1. Your company’s size
Studies have shown that smaller companies tend to pay a VP of Operations less than larger companies. Your company’s size and the workload your operations leader will be responsible for managing should significantly impact the salary level and benefits offered.
Education is important at the leadership level. A VP of Operations with an advanced degree has a large amount of specialized operating knowledge that will benefit you and your company. The more specialized knowledge a candidate has, the more they can contribute as a member of your senior leadership team.
While formal education is an important consideration when it comes to determining salary, work experience is also important to evaluate what to pay a candidate. A candidate’s work experience shows you what they are capable of accomplishing as an employee. The most valuable employees are the ones who show a history of success within their career and demonstrate a deep dedication to relentless learning.
Experience in fields outside of operations can be relevant too. If a candidate has industry experience outside of operations, this added bonus can enable the candidate to better understand different departments and could be enough to warrant a pay raise. Compare your candidate’s skill set with what you look for in a VP of Operations and decide how much you are willing to compensate them for their expertise.
4. Bonuses, stock options, and other benefits
Executives such as the Vice President of Operations often receive bonuses, stock options, or even equity for the overall organizational performance. If you are offering similar benefits, remember to factor in their value when you’re deciding what to pay a VP of Operations. How much do their decisions and actions directly impact organizational performance? In addition, be sure to mention these benefits early in the salary negotiation process. If you’re going to offer bonuses, make sure they are directly tied to the results they’re driving for your business.
You might be interested in these other posts about hiring a VP of Operations:
– When to Hire a VP of Operations
– What to Look For in a VP of Operations
– 10 VP of Operations Interview Questions
– What to Pay your VP of Operations
– How To Hire a VP of Operations
What questions do you have about what to pay a VP of Operations? Let us know in the comments.
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