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A crane operator is responsible for the safe and precise transportation of large loads at building sites. Crane operators play a crucial part in the dynamic world of heavy machinery and construction, and the need for people in this role is growing along with the demand for infrastructure projects.

For those interested in this profession, the income potential is a key consideration. According to the U.S. Bureau of Labor Statistics (BLS), the average salary for a crane and tower operator in May 2022 (the latest data available) was $65,220 per year, or $31.36 per hour. Depending on experience, industry, and location, some crane operators can make considerably more.

Read on to learn more about how much a crane operator can make, typical salary ranges, where to find the top-paying jobs, and the training and experience required to get a job as a crane operator.

What Are Crane Operators?

Crane operators handle all aspects of operating a crane — a machine that is used to lift and move heavy loads, machines, materials, and goods for a variety of purposes. A trade job that is often in high demand, crane operators are vital to many industries, including manufacturing, transportation, and construction.

Individuals in this role are responsible for more than just operating controls. To guarantee the safe and effective transportation of objects, crane operators also need to have a thorough awareness of load capabilities, safety procedures, and other site-specific factors.

Crane operators may use a variety of different cranes, including tower cranes, mobile cranes, and boom trucks, to perform their jobs. Though crane operators work solo, it’s not necessarily a good job for people with social anxiety, as they must be able to effectively communicate with other members of the construction team on the ground.


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How Much Do Starting Crane Operators Make a Year?

The starting salary for crane operators varies depending on industry, region, prior training, and certifications, but pay for an entry-level position averages around $35,000 per year, according to Zippia.

The earning potential of crane operators tends to improve as they gain more certificates and experience. The first few years lay the groundwork for skill development, and operators who put in the time and effort can move up the pay scale. Working overtime and overnight shifts can also boost crane operators’ salaries.

Recommended: 11 Work-From-Home Jobs for Retirees

What is the Average Salary for a Crane Operator?

According to the BLS’s most recent data, the average salary for a crane and tower operator in 2022 was $65,220. The lowest-paid 10% earned less than $37,680 that year, while the highest-paid 10% percent earned more than $93,410.

How much a crane operator makes, however, will depend on the operator’s level of expertise, industry specialization, and geographic location.

Crane operators working for construction and mining companies typically earn more than those who work in warehousing, storage, and manufacturing.

The highest-paying cities for crane operators are Vancouver, WA; New York, NY; and San Diego, CA.

How Much Money Does a Crane Operator Make by State?

As mentioned above, how much money a crane operator makes can vary by location. What follows is a breakdown of how much a crane operator makes per year, on average, by state.

State	Average Annual Salary
Alabama	$52,270
Alaska	$78,630
Arizona	$65,820
Arkansas	$44,900
California	$62,730
Colorado	$67,550
Connecticut	$82,430
Delaware	$62,960
Florida	$63,310
Georgia	$52,830
Hawaii	$105,170
Idaho	$72,860
Illinois	$58,680
Indiana	$56,640
Iowa	$62,220
Kansas	$59,050
Kentucky	$53,500
Louisiana	$61,710
Maine	$55,440
Maryland	$63,580
Massachusetts	$72,600
Michigan	$63,350
Minnesota	$74,210
Mississippi	$57,190
Missouri	$73,020
Montana	$67,090
Nebraska	$59,440
Nevada	$103,350
New Hampshire	$67,270
New Jersey	$97,930
New Mexico	$71,660
New York	$136,330
North Carolina	$57,080
North Dakota	$78,890
Ohio	$66,020
Oklahoma	$56,580
Oregon	$89,190
Pennsylvania	$58,920
Rhode Island	N/A
South Carolina	$55,360
South Dakota	$72,060
Tennessee	$54,490
Texas	$61,500
Utah	$60,230
Vermont	$64,540
Virginia	$64,470
Washington	$82,640
West Virginia	$51,210
Wisconsin	$59,390
Wyoming	$75,520

Source: U.S. Bureau of Labor Statistics

Crane Operator Job Considerations for Pay & Benefits

To become a crane operator, you first need a high school diploma or an equivalent. While not required, many crane operators attend trade school to learn practical construction skills and how to operate heavy machinery, including cranes. This is typically a one- or two-year course.

After graduating from a high school or trade school, many crane operators enroll in a general crane operator training program. These programs, which last between three weeks and three months, help prepare aspiring crane operators for the National Commission for the Certification of Crane Operators (NCCCO) examination.

It’s necessary for crane operators to hold the certification relevant to the types of cranes they operate. Some states and cities also require crane operators to hold a local license.

Once you have a job as a crane operator, you can not only earn competitive pay but also benefits. Many companies supplement the base pay with perks like paid time off, health insurance, and retirement programs.

When thinking about a career as a crane operator, it’s important to take into account the whole range of compensation and benefits that come with the job.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of a Crane Operator Salary

As with any profession, working as a crane operator comes with both advantages and disadvantages. Understanding the pros and cons of this role will help you determine if you’re well-suited for this career path.

Pros of Becoming a Crane Operator

•   Competitive salary: While you may not earn a $100,000 a year salary as a crane operator, this is generally a well-paid position.

•   Opportunities for overtime: Since construction projects often take longer than originally anticipated, crane operators frequently have the opportunity to make extra money by working overtime.

•   Industry need: The need for construction projects is ongoing, which helps to maintain a solid job market for crane operators and a constant flow of employment prospects.

•   Opportunities for advancement: As crane operators gain knowledge and specialized skills, they may be able to negotiate higher wages.

Recommended: The Pros and Cons of Salary vs Hourly Pay

Cons of Becoming a Crane Operator

•   Physically demanding: Operating a crane can be physically taxing since it involves standing or sitting for extended periods of time.

•   Safety concerns: Working with heavy machinery at significant heights is a necessary part of the profession, which has inherent safety concerns. Strict adherence to safety procedures is essential to avoiding accidents.

•   Variable working conditions: Crane operators are often exposed to a range of weather conditions and terrain. Work conditions can be challenging.

•   Training and certification requirements: You can’t just get a job as a crane operator right out of high school. Training and certification is necessary, which means you may need to invest some time and money into the career before you can start making a good salary.

The Takeaway

Crane operator jobs are one of the most coveted positions in the construction business thanks to the competitive pay. On average, crane operators earn $65,220, but certain jobs in competitive areas can pay considerably. Crane operators often have the opportunity to work overtime and typically get benefits on top of their base pay.

Whatever type of job you pursue, you’ll want to make sure your earnings can cover your everyday living expenses. To ensure your monthly outflows don’t exceed your monthly inflows, you may want to set up a budget and check out financial tools that can help track your income and spending.

With SoFi, you can keep tabs on how your money comes and goes.

FAQ

Can you make $100k a year as a crane operator?

The average annual salary for a crane operator is $65,220. However, a highly skilled and experienced crane operator may be able to make a six-figure salary, especially those employed in high-demand industries or areas.

Do people like being a crane operator?

Many people find a job as a crane operator rewarding due to its competitive pay, diverse work environments, and opportunities for skill development and advancement. For some, however, the physical demands and safety risks lower overall job satisfaction.

Is it hard to get hired as a crane operator?

Working as a crane operator can provide ample job opportunities for people who are qualified to work with these machines safely. To get a good job as a crane operator, you typically need to take trade school courses, complete general operator training, and gain apprenticeship experience.

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Photo credit: iStock/ewg3D

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You may have come across the term “ESOP” and wondered, what does ESOP stand for? An employee stock ownership plan (ESOP) is a type of defined contribution plan that allows workers to own shares of their company’s stock. While these plans are covered by many of the same rules and regulations that apply to 401(k) plans, an ESOP uses a different approach to help employees fund their retirement.

The National Center for Employee Ownership estimates that there are approximately 6,533 ESOPs covering nearly 15 million workers in the U.S. But what is an employee stock ownership plan exactly? How is an ESOP a defined contribution plan? And how does it work?

If you have access to this type of retirement plan through your company, it’s important to understand the ESOP meaning and where it might fit into your retirement strategy.

What Is an Employee Stock Ownership Plan (ESOP)?

An ESOP as defined by the IRS is “an IRC section 401(a) qualified defined contribution plan that is a stock bonus plan or a stock bonus/money purchase plan.” (IRC stands for Internal Revenue Code.) So what is ESOP in simpler terms? It’s a type of retirement plan that allows you to own shares of your company’s stock.

Though both ESOPs and 401(k)s are qualified retirement plans, the two are different in terms of how they are funded and what you’re investing in. For example, while employee contributions to an ESOP are allowed, they’re not required. Plus, you can have an ESOP and a 401(k) if your employer offers one. According to the ESOP Association, 93.6% of employers who offer an ESOP also offer a 401(k) plan for workers who are interested in investing for retirement.

💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.

How Employee Stock Ownership Plans Work

In creating an ESOP, the company establishes a trust fund for the purpose of holding new shares of stock or cash to buy existing shares of stock in the company. The company may also borrow money with which to purchase shares. Unlike employee stock options, with an ESOP employees don’t purchase shares themselves.

Shares held in the trust are divided among employee accounts. The percentage of shares held by each employee may be based on their pay or another formula, as decided by the employer. Employees assume ownership of these shares according to a vesting schedule. Once an employee is fully vested, which must happen within three to six years, they own 100% of the shares in their account.

ESOP Distributions and Upfront Costs

When an employee changes jobs, retires, or leaves the company for any other reason, the company has to buy back the shares in their account at fair market value (if a private company) or at the current sales price (if a publicly-traded company). Depending on how the ESOP is structured, the payout may take the form of a lump sum or be spread over several years.

For employees, there are typically no upfront costs for an ESOP.

Employee Stock Ownership Plan Examples

A number of companies use employee stock ownership plans alongside or in place of 401(k) plans to help employees save for retirement, and there are a variety of employee stock ownership plan examples. Some of the largest companies that are at least 50% employee-owned through an ESOP include:

•   Publix Super Markets

•   WinCo Foods

•   Amsted Industries

•   Brookshire Grocery Company

•   Houchens Industries

•   Performance Contracting, Inc.

•   Parsons

•   Davey Tree Expert

•   W.L. Gore & Associates

•   HDR, Inc.

Seven of the companies on this list are 100% employee-owned, meaning they offer no other retirement plan option. Employee stock ownership plans are popular among supermarkets but they’re also used in other industries, including engineering, manufacturing, and construction.

Pros & Cons of ESOP Plans

ESOPs are attractive to employees as part of a benefits package, and can also yield some tax benefits for employers. Whether this type of retirement savings plan is right for you, however, can depend on your investment goals, your long-term career plans, and your needs in terms of how long your savings will last. Here are some of the employee stock ownership plans pros and cons.

Pros of ESOP Plans

With an ESOP, employees get the benefit of:

•   Shares of company stock purchased on their behalf, with no out-of-pocket investment

•   Fair market value for those shares when they leave the company

•   No taxes owed on contributions

•   Dividend reinvestment, if that’s offered by the company

An ESOP can be an attractive savings option for employees who may not be able to make a regular payroll deduction to a 401(k) or similar plan. You can still grow wealth for retirement as you’re employed by the company, without having to pay anything from your own pocket.

Cons of ESOP Plans

In terms of downsides, there are a few things that might make employees think twice about using an ESOP for retirement savings. Here are some of the potential drawbacks to consider:

•   Distributions can be complicated and may take time to process

•   You’ll owe income tax on distributions

•   If you change jobs means you’ll only be able to keep the portion of your ESOP that you’re vested in

•   ESOPs only hold shares of company stocks so there’s no room for diversification

Pros and Cons of ESOP Plan Side-by-Side Comparison

Pros	Cons
•   Shares of company stock purchased on employees’ behalf, with no out-of-pocket investment •   Fair market value for those shares when they leave the company •   No taxes owed on contributions •   Dividend reinvestment, if that’s offered by the company	•   Distributions can be complicated and may take time to process •   You’ll owe income tax on those distributions •   Changing jobs means you’ll only be able to keep the portion of your ESOP that you’re vested in •   ESOPs only hold shares of company stocks so there’s no room for diversification

By comparison, a 401(k) could offer more flexibility in terms of what you invest in and how you access those funds when changing jobs or retiring. But it’s important to remember that the amount you’re able to walk away with in a 401(k) largely hinges on what you contribute during your working years, whereas an ESOP can be funded without you contributing a single penny.

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ESOP Contribution Limits

The IRS sets contribution limits on other retirement plans, and ESOPs are no different. In particular, there are two limits to pay attention to:

•   Limit for determining the lengthening of the five-year distribution period

•   Limit for determining the maximum account balance subject to the five-year distribution period

Like other retirement plan limits, the IRS raises ESOP limits regularly through cost of living adjustments. Here’s how the ESOP compares for 2023 and 2024.

ESOP Limits	2023	2024
Limit for determining the lengthening of the five-year distribution period	$265,000	$275,000
Limit for determining the maximum account balance subject to the five-year distribution period	$1,330,000	$1,380,000

Cashing Out of an ESOP

In most cases, you can cash out of an ESOP only if you retire, leave the company, lose your job, become disabled, or pass away.

Check the specific rules for your plan to find out how the cashing-out process works.

Can You Roll ESOPs Into Other Retirement Plans?

You can roll an ESOP into other retirement plans such as IRAs. However, there are possible tax implications, so you’ll want to plan your rollover carefully.

ESOPs are tax-deferred plans. As long as you roll them over into another tax-deferred plan such as a traditional IRA, within 60 days, you generally won’t have to pay taxes.

However, a Roth IRA is not tax-deferred. In that case, if you roll over some or all of your ESOP into a Roth IRA, you will owe taxes on the amount your shares are worth.

Because rolling over an ESOP can be a complicated process and could involve tax implications, you may want to consult with a financial professional about the best way to do it for your particular situation.

ESOPs vs 401(k) Plans

Although ESOPs and 401(k)s are both retirement plans, the funding and distribution is different for each of them. Both plans have advantages and disadvantages. Here’s a side-by-side comparison of their pros and cons.

	ESOP	401(k)
Pros	•   Money is invested by the company, typically, and requires no contributions from employees. •   Employees get fair market value for shares when they leave the company. •   Company may offer dividend reinvestment.	•   Many employers offer matching funds. •   Choice of options to invest in. •   Generally easy to get distributions when an employee leaves the company.
Cons	•   ESOPs are invested in company stock only. •   Value of shares may fall or rise based on the performance of the company. •   Distribution may be complicated and take time.	•   Some employees may not be able to afford to contribute to the plan. •   Employees must typically invest a certain amount to qualify for the employer match. •   Employees are responsible for researching and choosing their investments.

Recommended: Should You Open an IRA If You Already Have a 401(k)?

3 Other Forms of Employee Ownership

An ESOP is just one kind of employee ownership plan. These are some other examples of plans an employer might offer.

Stock options

Stock options allow employees to purchase shares of company stock at a certain price for a specific period of time.

Direct stock purchase plan

With these plans, employees can use their after-tax money to buy shares of the company’s stock. Some direct stock purchase plans may offer the stock at discounted prices.

Restricted stock

In the case of restricted stock, shares of stock may be awarded to employees who meet certain performance goals or metrics.

Investing for Retirement With SoFi

There are different things to consider when starting a retirement fund but it’s important to remember that time is on your side. No matter what type of plan you choose, the sooner you begin setting money aside for retirement, the more room it may have to grow.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Easily manage your retirement savings with a SoFi IRA.

FAQ

Can employees contribute to an ESOP?

In most cases, the employer makes contributions to an ESOP on behalf of employees. Rarely, employers may allow for employee contributions to employee stock ownership plans.

What is the maximum contribution to an ESOP?

The maximum account balance allowed in an employee stock ownership plan is determined by the IRS. For 2024, this limit is $1,380,000, though amounts are increased periodically through cost of living adjustments.

What does ESOP stand for?

ESOP stands for employee stock ownership plan. This is a type of qualified defined contribution plan which allows employees to own shares of their company’s stock.

How does ESOP payout work?

When an employee changes jobs, retires, or leaves the company for any other reason, the company has to buy back the shares in their account at fair market value or at the current sales price, depending if the company is private or publicly-traded. The payout to the employee may take the form of a lump sum or be spread over several years. Check with your ESOP plan for specific information about the payout rules.

Is an ESOP better than a 401(k)?

An ESOP and a 401(k) are both retirement plans, and they each have pros and cons. For instance, the employer generally funds an ESOP while an employee contributes to a 401(k) and the employer may match a portion of those contributions. A 401(k) allows for more investment options, while an ESOP consists of shares of company stock.

It’s possible to have both an ESOP and a 401(k) if your employer gives you that option. Currently, almost 94% of companies that offer ESOPs also offer a 401(k), according to the ESOP Association.

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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