How To Hire a General Manager: A Step-by-Step Guide for Business Owners

Whether you’re expanding your hospitality business or replacing a departing leader, hiring a General Manager is one of the most critical decisions you’ll make as a business owner. Your GM will essentially become the backbone of your entire operations, directly impacting everything from team performance to bottom-line results.

That’s exactly why we’ve created this guide. We’ll walk you through each step of the process — from defining your requirements and creating an effective recruitment strategy to evaluating candidates and making your final selection.

Defining Your General Manager Requirements

Before posting that job listing, you need to clearly define what you’re looking for in your next General Manager.

Key responsibilities and authority levels

Your GM will be responsible for shaping the work environment and setting strategic direction for your organization.

Specifically, they will:

• Drive operational excellence by developing processes and establishing a motivational work environment.
• Manage budgets and resource allocation across departments.
• Oversee recruitment, training and performance evaluation of department heads and/or team leads.
• Create and implement growth strategies while maintaining quality standards.

Required skills and experience

To succeed in this role, your ideal candidate should possess a combination of technical expertise and leadership capabilities. Consider creating a skills assessment matrix with these core requirements:

• Bachelor’s degree in business management
• MBA or other relevant master’s degree (preferred)
• Minimum of five years in a management role
• Strong financial acumen for budgeting and resource allocation
• Exceptional communication and delegation abilities
• Strategic planning and problem-solving capabilities

For more info and templates, check out our Hotel General Manager job description.

Bonus tip: Hear from a Conrad Hotels GM, Chintan Dadhich, who’s also a seasoned hospitality leader with over 20 years of experience. Here’s what he says is the most important factor when choosing an employee:

Cultural fit considerations

Above all, finding a GM who aligns with your company culture is crucial for long-term success. Furthermore, research shows that focusing solely on cultural fit can lead to overlooking valuable diverse perspectives.

Instead, look for candidates who:

• Share your organization’s core values while bringing fresh viewpoints
• Demonstrate ability to lead diverse teams effectively
• Show willingness to challenge the status quo constructively
• Possess strong interpersonal skills for building relationships across departments

Consider creating a structured assessment process that evaluates both technical capabilities and cultural alignment. This balanced approach helps ensure you find a GM who can drive results while fostering an inclusive environment.

Creating Your General Manager Recruitment Strategy

Now that you’ve defined your GM requirements, let’s create a strategic plan for your recruitment process. A well-thought-out strategy will help you find the right candidate efficiently and cost-effectively.

Building an attractive compensation package

The average General Manager salary in the U.S. is $93,384 per year. However, Miami stands out with one of the highest Hotel General Manager salaries at $118,314 annually — approximately 27% above the national average.

The graph below highlights Hotel General Manager salaries across key U.S. cities, helping you benchmark and adjust your offer to stay competitive.

[Calculated using ZipRecruiter, Salary.com and Indeed data]

This map is interactive. Hover your mouse over different parts of the map to see detailed data. 

Developing a timeline and budget

When planning your recruitment budget, it’s important to factor in all the key expenses to avoid surprises down the line. Below is a breakdown of what to expect.

• Job board postings: Get your job in front of the right audience.
• Assessment tools: Evaluate candidates effectively to ensure the best fit.
• Background checks: Protect your business by verifying candidate information.
• Applicant tracking systems: Streamline and organize the hiring process.

Conducting an Effective Search

With your requirements defined and strategy in place, it’s time to launch your search effectively.

Writing a compelling job description

Your job description needs to go beyond listing basic requirements. To attract top-tier General Manager candidates, focus on crafting a narrative that showcases your company’s culture and values. Essentially, your job posting should:

Leveraging professional networks

Professional networking significantly improves your hiring success rate. Consequently, organizations can expand their talent pool tenfold by recruiting through employee networks. Here are effective networking strategies:

1. Engage Your Current Network:
   • Connect with managers and colleagues from past roles
   • Reach out to industry professionals
   • Ask for referrals from trusted vendors
2. Expand Your Reach:
   • Join professional associations
   • Attend industry conferences
   • Participate in relevant groups

Moreover, consider offering referral bonuses to your current employees. Many companies provide monetary rewards for successfully hired candidates, though the amount varies by organization.

Ultimately, casting a wide net across multiple platforms increases your chances of finding the perfect candidate. According to recruitment data, sourced candidates are twice as efficient as general applicants, with 1 in 72 sourced candidates getting hired compared to 1 in 152 applicants.

Evaluating General Manager Candidates

Once you’ve gathered a pool of promising candidates, it’s time to put on your detective hat and start the evaluation process. Let’s explore how to identify the best general manager for your business through careful screening and assessment.

Screening resume red flags

Your first line of defense in candidate evaluation is spotting potential issues in resumes. Generally, 58% of hiring managers consider grammar and punctuation mistakes to be a major red flag. Watch out for these warning signs:

• Unexplained employment gaps
• Frequent job changes before completing one year
• Lack of career progression or skill development
• Generic cover letters without customization
• Disorganized formatting or multiple errors

Essential interview questions

Essentially, your interview questions should reveal leadership capabilities and management style. Create a structured interview framework that covers these key areas:

EXPERIENCE	LEADERSHIP	INNOVATION	GUEST RELATIONS	TEAM MANAGEMENT	PERSONAL GROWTH
Highlight candidate’s background and past roles	Focus on handling high-pressure situations	Ask about initiatives to improve operations	Assess ability to manage guest complaints and reviews	Ask about leadership style and staff motivation	Explore reasons for entering hospitality management
Assess knowledge of industry trends and compliance	Assess staff management and development approach	Evaluate experience with supply chain and technology tools	Focus on strategies to enhance overall guest experience	Evaluate performance monitoring and feedback delivery	Assess long-term career goals and leadership aspirations
Evaluate operational efficiency	Evaluate conflict resolution and guest satisfaction skills

Assessment methods and tools

Particularly, candidate assessment tools can eliminate guesswork and lead to faster, better hires. Consider implementing these evaluation methods:

1. Structured Interviews
   • Use consistent questions across candidates
   • Score responses using standardized criteria
   • Document observations systematically
2. Skills Assessment
   • Technical competency tests
   • Leadership capability evaluation
   • Problem-solving scenarios
3. Cultural Fit Analysis
   • Team interaction assessment
   • Values alignment check
   • Communication style evaluation

Remember that AI-powered assessment tools can analyze large volumes of candidate data quickly and accurately, providing valuable insights into candidates’ skills and likely job performance. Likewise, these tools can help reduce bias in your hiring process while improving selection accuracy.

Making the Final Selection

You’ve narrowed down your candidates and completed the interviews. Now, it’s time to make that crucial final decision about your next GM.

Reference check best practices

Essentially, reference checks should happen early in your final selection process.

Here’s how to conduct them effectively:

1. Request Multiple References:
   • At least one former manager
   • One previous subordinate
   • Recent professional contacts
2. Background Verification Process
   • Criminal record checks
   • Employment history verification
   • Educational qualification confirmation
   • Credit history (for financial roles)
   • Drug screening (if applicable)

Remember that background checks aren’t a one-time event – many companies conduct annual reviews for management positions. Create a clear policy document outlining:

• Types of checks to be conducted
• Frequency of verification
• Impact on employment decisions
• Compliance with FCRA requirements

Hiring the Right General Manager for Your Hospitality Business

Finding the right General Manager is key to driving your business forward. With thoughtful planning and a clear process, you can confidently select a leader who will make a lasting impact.

Avoid the temptation to rush. Your GM plays a vital role in the success of daily operations, so take the time to carefully evaluate each candidate against defined criteria. Monitor your results, refine your approach and stay committed to what works best for your organization.

The ideal GM should bring a balance of leadership skills and technical expertise, while also aligning with your company’s culture and long-term vision.