Managerial vs. non-managerial: differences and advantages of each status

In the professional world, the managerial/non-managerial classification is crucial for both companies and employees. This status influences not only the level of responsibility, but also compensation, benefits, legal working hours, and employer and employee social security contributions. Before hiring or choosing a position, it is therefore essential to understand the difference between managerial and non-managerial staff to better anticipate the advantages, disadvantages, and career advancement opportunities.

Definition of managerial and non-managerial status

The salaried executive

Although there is no legal definition, the national interprofessional agreement of February 28, 2020 characterizes managerial status according to four criteria:

• Diploma: Recognition of qualification may result from a higher diploma or confirmed expertise.
• Influence: the managerial employee is often involved in decisions, with a higher level of responsibility, or even access to management.
• Autonomy: he frequently benefits from a fixed working time (e.g., fixed days), with greater flexibility in the organization of his hours.
• Responsibility: the manager may have an intermediate management role or team leadership role, participating in strategic steering missions.

The non-managerial employee

Non-managerial status corresponds to a position that is often more "operational," not requiring a higher education degree or significant managerial responsibility. Non-managerial staff are generally subject to the legal working hours of 35 hours per week. Overtime is paid or compensated with time off, according to a specific collective agreement. This position is considered an entry-level or middle-level role, without any real supervisory responsibilities.

The employee with equivalent status as an executive

Between managerial and non-managerial status, there is also the category of employee with equivalent managerial status. These employees do not necessarily have a management or team leadership role, but benefit from certain advantages in terms of flexibility and enhanced social protection. Generally, they fall under an intermediate job classification, with a hierarchical coefficient slightly lower than that of a full-fledged manager.

However, they often contribute to the supplementary pension and benefits schemes like managers, thus benefiting from certain specific guarantees. This status is observed, for example, when an employee moves into technically expert roles, deemed essential by the employer, without necessarily holding hierarchical authority.

Hiring a manager or a non-manager, what are the differences?

The trial period and the notice period

In terms of recruitment procedures, the distinction between managerial and non-managerial staff is most noticeable in the probationary period. For a managerial contract, this period can be longer (up to four months, renewable once) depending on industry agreements or the collective bargaining agreement. Non-managerial staff often have a shorter probationary period (generally two months, renewable according to the company agreement).

The notice period for leaving or terminating a contract also differs. Managers may be subject to longer notice periods, given their senior hierarchical position and the employer's need to find a suitable replacement. Non-managerial employees, on the other hand, will observe a shorter notice period, in accordance with the classification scale and the rules set out in the collective agreement.

Working hours

The statutory working hours apply to non-managerial staff, with overtime pay available for hours worked beyond them. While managers may also be subject to these hours, they generally have a fixed working time agreement, although this is not mandatory. An individual fixed-rate agreement between the employer and employee can only be concluded with the employee's written consent.

There are two types of packages:

• The annual work agreement (forfait jours): the employee must work a predetermined number of days per year, without being counted as working time. However, the French Labor Code imposes a limit of 218 days per year. This annual arrangement entitles employees to days off (RTT) but also involves unpaid overtime.
• The fixed-hours agreement: the number of hours, including overtime, is set in the collective agreement, which can apply weekly, monthly, or annually. The employee can then freely organize their working time without being subject to collective schedules. However, if the employee works hours beyond the agreed-upon hours, these are deducted and paid at the overtime rate.

This annualization of working time provides greater autonomy and presents both advantages and disadvantages. On the one hand, managerial responsibilities and strategic leadership roles require a degree of flexibility. On the other hand, managers must assume a potentially heavier workload.

Remuneration

Compensation level is, of course, a key factor in the difference between managers and non-managers. Managers generally receive higher salaries, justified by their responsibilities and managerial skills, as well as the required level of education. The collective bargaining agreement often includes higher salary grades, along with various bonuses (responsibility, on-call duty, etc.).

For non-managerial staff, remuneration is generally lower. However, performance bonuses or other supplements can increase their pay. The salary scale is primarily based on the grade or category linked to the collective bargaining agreement classification and seniority within the company.

In addition, managerial employees may benefit from other perks: company car, company phone and computer, company credit card, or other benefits. All of this represents additional costs for the company.

Contributions and insurance

Contributions also differ between managers and non-managers. Managers are affiliated with APEC (Association for the Employment of Managers) and pay a specific monthly contribution. The rate is set at 0.06%, split between the employer (0.036%) and the employee (0.024%). Like France Travail for non-managers, APEC supports managers throughout their careers and helps them find new employment when necessary.

Every company employing managers or equivalent staff must pay an employer contribution to an insurance or pension provider, primarily earmarked for death benefit coverage, in addition to Social Security benefits. This contribution is mandated by the interprofessional agreement of November 17, 2017, on supplementary benefits for managers. Set at 1.5% of the portion of salary below the Social Security ceiling, it is fully funded by the employer.

Since the merger of the Agirc-Arrco pension schemes in 2019, supplementary pension contributions are the same for all employees. However, managers continue to receive higher pensions because these are calculated based on their salary.

FAQ - Frequently Asked Questions

Why is a manager paid less than a non-manager?

At the same gross salary, a non-managerial employee will be paid more than a managerial employee. The reason is that managerial status requires higher social security contributions.

Why go from non-managerial to managerial position?

Moving from a non-managerial to a managerial position offers advantages such as a higher salary, better social benefits (pension and retirement), increased flexibility, and promotion opportunities. However, while the compensation may be attractive, when calculated per hour worked, the work can seem underpaid. This must also be taken into account by the non-managerial employee when assessing the benefits of a managerial position.

To achieve this new status, you must enhance your qualifications. This involves training and certifications, or demonstrating recognized expertise in a specific field. You can also submit a formal request to your employer, highlighting your skills and contributions to the company. Note that this change in status requires an amendment to your employment contract.

Why refuse managerial status?

Refusing managerial status can be motivated by personal or professional reasons, such as the desire to avoid an increased workload, less structured hours, or managerial responsibilities. Some prefer to maintain a better separation between their professional and personal lives.

What are the benefits of being an executive for retirement?

Managers generally benefit from higher contributions to supplementary pension schemes, allowing them to receive a larger pension. Furthermore, their membership in APEC gives them access to specific services throughout their careers.

What is a good salary for an executive?

The "right" salary for an executive varies depending on the sector, level of expertise, and location. According to APEC, the median gross annual salary (fixed + variable) for an executive was €54,000 in June 2024. For example, this compensation amounts to €48,000 in sales administration roles compared to €74,000 in IT management roles. It should be noted that male executives still earn 12% more than female executives, but this gap is narrowing.