Executive vs. non-executive: differences and advantages of each status

In the professional world, executive/non-executive classification is of crucial importance for companies and employees alike. This status influences not only the level of responsibility, but also remuneration, benefits, legal working hours and employer and employee contributions. So, before hiring or choosing a position, it's essential to understand the difference between executive and non-executive status, so as to better anticipate the advantages, disadvantages and career development prospects.

Definition of executive and non-executive status

The executive employee

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

• Diploma: recognition of qualifications can be based on a higher diploma or proven expertise.
• Influence: the executive employee is often involved in decision-making, with a higher level of responsibility and even access to management.
• Autonomy: they often benefit from a fixed working time (e.g. fixed day rate), with greater flexibility in the organization of their working hours.
• Responsibility: the executive may have a middle management or team supervision role, taking part in strategic steering missions.

Non-managerial employees

The non-executive status corresponds to a position that is often more "operational", not requiring a higher diploma or significant managerial responsibility. Non-executives are generally subject to the statutory 35-hour working week. Overtime is paid or compensated within the framework of a specific agreement. Non-executives work in a line or intermediate position, without any real supervisory responsibility.

The managerial employee

Between executive and non-executive status, there is also the category of assimilated executive employee. These employees do not necessarily have a management or team supervision role, but benefit from certain advantages in terms of flexibility and enhanced social protection. In general, they come under an intermediate job classification, with a hierarchical coefficient slightly lower than that of a pure executive.

However, they often contribute to the provident scheme and supplementary pension scheme in the same way as an executive, thus benefiting from certain specific guarantees. This status can be observed, for example, when an employee progresses towards functions of technical expertise, deemed essential by the employer, without assuming hierarchical authority.

What are the differences between hiring an executive or a non-executive?

Trial period and notice period

In terms of recruitment methods, the distinction between managerial and non-managerial staff is reflected in the trial period. For an executive employment contract, this period can be longer (up to four months, renewable once) depending on branch agreements or the collective bargaining agreement. Non-executives often have a shorter trial period (generally two months, renewable according to the company agreement).

Notice periods in the event of departure or breach of contract are also distinct. Executives may be required to give longer notice, given their high hierarchical position and the need for the employer to find a suitable replacement. A non-managerial employee, on the other hand, will have a shorter notice period, in accordance with the classification scale and the rules laid down by the collective bargaining agreement.

Working hours

Statutory working hours apply to non-executives, with overtime paid where applicable. Executives may also be subject to this, but their working hours are generally fixed, although this is not compulsory. An individual lump-sum agreement between employer and employee can only be concluded with the latter's written consent.

There are two types of packages:

• Fixed-rate days: the employee must work a predetermined number of days in the year, without counting working time. However, the French Labor Code imposes an annual limit of 218 days. This annual arrangement entitles the employee to rest days (RTT), but involves unpaid overtime.
• Flat-rate hours: the number of hours, including overtime, is set in the agreement, which may apply on a weekly, monthly or annual basis. In this case, the employee is free to organize his or her working hours without being subject to collective timetables. However, if the employee works hours in excess of the fixed rate, they are counted and paid at the premium rate.

This annualization of working hours confers greater autonomy, and has both advantages and disadvantages. On the one hand, managerial responsibility and strategic oversight require a degree of flexibility. On the other, the executive employee has to take on a potentially heavier workload.

Compensation

The level of remuneration is of course a central element in the difference between executives and non-executives. Executives generally receive a higher salary, justified by their responsibilities and managerial skills, and the level of education required. Collective bargaining agreements often provide for higher coefficients, as well as various bonuses (responsibility, on-call duty, etc.).

For non-executives, remuneration is generally lower. However, performance bonuses and other supplements may be added to the pay slip. The salary scale is based primarily on step or category, in line with the collective bargaining classification and seniority within the company.

In addition, the executive employee can enjoy other benefits: company car, company telephone and computer, business bank card and so on. All this represents additional costs for the company.

Contributions and benefits

Contributions also differ between executives and non-executives. Executives are affiliated to APEC (Association pour l'emploi des cadres) and pay a specific monthly contribution. The rate is set at 0.06%, with the employer paying 0.036% and the employee 0.024%. Like France Travail for non-executives, APEC supports executives throughout their careers, helping them to find a new job when necessary.

Any company employing executives or assimilated executives must pay an employer's contribution to an insurance or provident fund that is primarily earmarked to cover the risk of death, in addition to Social Security benefits. This contribution is imposed by the interprofessional agreement of November 17, 2017 on the provident scheme for managerial staff. Set at 1.5% of the salary bracket below the Social Security ceiling, it is fully funded by the employer.

Since the merger of the Agirc-Arrco schemes in 2019, supplementary pension contributions are similar for all employees. However, executives continue to receive higher pensions since these are calculated on compensation.

FAQ - Frequently asked questions

Why is an executive paid less than a non-executive?

For the same gross salary, a non-managerial employee will be paid more than a managerial employee. The reason for this is that executive status requires more contributions.

Why go from non-executive to executive?

Moving from non-executive to executive offers advantages such as a higher salary, better social security cover (provident and pension schemes), greater flexibility and promotion prospects. But even if the remuneration is attractive, the work may seem poorly paid in relation to the number of hours worked. This must also be taken into account by non-executive employees when calculating their executive benefits.

To achieve this new status, you need to enhance your qualifications. This can be achieved through training and certification, or by demonstrating recognized expertise in a particular field. It is also possible to make a formal request to your employer, highlighting your skills and contribution to the company. Note that this change in status requires an amendment to the employment contract.

Why refuse executive status?

Refusing executive status can be motivated by personal or professional reasons, such as the desire to avoid an increased workload, less structured working hours, or managerial responsibilities. Some prefer to keep their professional and personal lives more separate.

What's the point of being an executive for retirement?

Executives generally benefit from higher supplementary pension contributions, which enable them to receive a larger pension. In addition, their membership of APEC gives them access to specific services throughout their career.

What is the right salary for an executive?

The "right" salary for an executive varies according to sector, level of expertise and location. According to APEC, the median gross annual salary (fixed + variable) for an executive in June 2024 is €54,000. For example, this figure rises to €48,000 in sales administration, compared with €74,000 in IT management. Male executives still earn 12% more than female executives, but the gap is narrowing.