According to ca.talent.com, salaries for general managers in Canada start at around $ 48,000 and can go up to at least $ 181,000. How do you navigate such a large scale when the time comes to hire a general manager (GM) ?
And what are some of the things to consider when it comes to setting the salary of a general manager ? You have to start by assessing the specific aspects of your situation: the role of your future GM, your industry and equity issues within your company.
The importance of the role of the GM
What is the role of a general manager? While the company’s president will have a more strategic vision and role, the GM will focus on the operational side. As the Investopedia website mentions, ”a general manager is expected to improve efficiency and increase profits while managing the overall operations of a company or division.”
This role can therefore affect various facets of the company:
- Business development
- Business growth management
- Management of material and financial resources
- Human Resource Management
- Production management
- Increase of the organizational capacity of a company
- Development of action plans in line with company objectives
In short, the general manager will be THE person who takes the company further. Hiring a general manager should therefore not be taken lightly. If this person is hired to ensure the visibility of the company and obtain productivity gains, then his/her salary must obviously reflect all the tasks for which he/she is paid.
If you hire the right person, you will enjoy a good return on the investment of the GM’s salary. Indeed, the expertise of a general manager can have a big impact on a business.
Your industry standards
Are you a municipality, an NPO or an SME? The answer to this question will be very important in establishing the salary of a general manager.
In order to recruit a general manager with the skills and management style you need, you’ll have to offer a competitive salary in your industry. Each industry has different standards.
An NPO does not necessarily have the capacity to compensate its general manager the same way as a private company. The important thing here is to respect your capabilities as a company, while staying close to the market, to be competitive.
Sometimes this is easier said than done, but don’t give up. A good knowledge of your industry and the market should make it easier.
To help you, here is a survey (in French) conducted by the CSMO-ÉSAC, which presents, among other things, the average salary of an NPO general manager. And if you’re in the private sector, here’s the Hays 2020 Salary Guide for Canada.
Otherwise, an outside recruiting firm could give you advice on executive compensation and a better idea of the market. Indeed, headhunting firms have excellent knowledge of the current market, since they are in regular contact with candidates.
We have experience in recruiting general managers, whether in private companies, municipalities or NPOs! Here are some examples of general manager positions we have filled
Equity within your business
The role of the general manager is very important in a company. So this is not the job where you can afford to set a salary too low.
Be careful, however, to inflate the salary of a general manager too much! Of course, the role of a general manager is very strategic and the return on investment (ROI) can be high. Having said that, if you pay your general manager 7 or 10 times more than your other employees, it could create a feeling of unfairness in your teams.
After all, that return on investment that’s so often mentioned to justify high salaries, is it 10 times the ROI of your other employees? To ask the question, is to answer it!
An employee earns a company between 1 and 3 times their salary annually. This is an average across all positions. And most importantly, it can be a data to help you calculate the salary of your GM. If you multiply his/her salary by 3, is it realistic to think that your general manager can bring this amount back to the company in 1 year?
No matter what calculations and data you use to establish your salaries, the way you calculate should not change drastically depending on the level of the position. So keep fairness in mind when setting your general manager salary.
So how do you set the salary of a general manager?
There are several aspects to consider when determining the salary of a general manager. Ultimately, each situation is unique depending on the company, industry, number of employees, hierarchical structure, etc.
The important thing is to keep in mind the expertise you want to seek with your future GM, the standards of the market and your industry and the issues of equity within your company.
Thanks to our expertise, we are able to present some examples of average salaries in different types of companies. These salaries are only indicative examples, and may vary according to the specific situation of each company.
WANT HELP SETTING THE SALARY OF A GENERAL MANAGER? CONTACT US!
Quebec Employers : We can offer you strategic advice on the salary scales of your management positions! All you need to do is contact us by phone or email and provide us with the job description for which you are recruiting. After evaluating the position, we will be able to send you a free salary scale within 48 hours. Certain restrictions apply. Call us for details.
Montreal: 514-842-7846
Drummondville: 819-445-7846
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