How Much Does a Project Manager Make?
Aug 23, 2024
So, you're considering stepping into the project management world? Wise decision.
Becoming a project manager allows you to explore various industries and manage projects of all sorts. While that's exciting on its own, project management is also a well-paying career with room to advance into even higher-paying positions. Therefore, before diving into this career, you must have a clear picture of how much a project manager makes.
Today is your lucky day. Join us as we explore the project manager's annual compensation, factors influencing the salary, and how you can increase your project management salary.
What is a Project Manager?
Project managers are business professionals who oversee projects for an organization or as consultants for a client company. Their primary role is to ensure projects are completed on time, within budget, and according to predefined scope and quality standards. They lead entire teams, define project goals, communicate with stakeholders, and see a project through its fruition.
These professionals play a crucial role across industries. Whether it involves running a marketing campaign, developing a computer system, or constructing a building, project managers are responsible for the success or failure of the project.
What Does a Project Manager Do?
Project managers oversee projects throughout the four stages of the project lifecycle: initiation, planning, execution, and closure. To ensure they complete projects on time and within budget, project managers complete tasks such as:
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Meeting with clients to discuss project details;
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Conducting market or audience research;
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Managing project resources, including teams and workers;
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Documenting the progress of the project;
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Identifying issues and possible solutions;
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Creating cost estimates;
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Coordinating with other teams and departments to complete the project;
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Assessing performance metrics at the project's completion to identify improvement areas.
As they're responsible for a project's success and have to perform a myriad of tasks, project managers need a broad skill set. Essential skills for project managers include adaptability, budgeting, decision-making, industry knowledge, leadership, communication, problem-solving, and time management.
How Much Does a Project Manager Make?
According to the "Project Management Salary Survey Thirteenth Edition" by the Project Management Institute (PMI), project managers earn an average salary of $120,000. However, this salary varies greatly depending on the industry.
As a project manager, you can work in different sectors; in some, you can earn more than others. For example, as a:
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IT project manager, you can earn a salary of $113,676;
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Construction project manager, you enjoy a salary of $97,768; and
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Healthcare project manager, you can benefit from a salary of $110,338.
However, the highest-paying industries for project managers are marketing, with a salary of $117,364, and finance, with a salary of $125,131.
Factors Influencing Salary
Your salary as a project manager depends on a variety of factors, like location, experience, and education. Let's explore how these factors influence your earning potential in more detail.
1. Location
One of the most important factors that affect your salary as a project manager is the region where you work. The highest-paying states include Alaska, with a salary of $110,734; Oregon, with a salary of $110,505; and Massachusetts, with an average salary of $110,270. Among the lower-paying states is Alabama, with a salary of $84,639; Arkansas, $82,675; and Georgia, $78,848.
When talking about location, it's also crucial to take into consideration the cost of living. The areas that correspond to the highest pay—often tend to come with higher living expenses. So, while your salary might be higher, expenses such as housing and utilities will likely be higher as well.
2. Experience
Another major factor impacting your salary as a project manager is how many years of experience you have in the field. Like with other occupations, the more time you work as a project manager, the more you can expect to earn. According to the PMI report, your salary as a project manager over the years can look something like this:
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<3 Years: $80,000;
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3 ≤ 5 Years: $91,750;
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5 ≤ 10 Years: $110,000;
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10 ≤ 15 Years: $130,000;
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15 ≤ 20 Years: $140,000;
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20+ Years: $150,000.
3. Education
As in many industries, higher education can lead to higher pay as a project manager. According to the Bureau of Labor Statistics, master's degree graduates, on average, earn $1,737 weekly, whereas bachelor's degree graduates earn $1,493.
In addition to leading to a higher salary, higher education can make you a more competitive candidate in the job market. For example, by earning a Master of Business Administration (MBA) or Master of Science in Organizational Leadership (MSOL), you can hone the leadership skills companies seek and, as a result, open up opportunities to move into executive management.
Besides formal education, certifications such as Project Management Professional (PMP) can significantly affect your earning potential as a project manager. According to the PMI report, PMP certification holders report a salary of $130,000, whereas their peers without PMP certification report a salary of $90,000.
Benefits and perks of being a project manager
In addition to a competitive base salary, as a project manager, you can receive standard benefits packages, such as health insurance, dental insurance, retirement plans, paid time off, parental leave, paid sick time, etc.
However, the perks of being a project manager go beyond standard compensation packages, often including bonuses, flexible schedules, remote work, and opportunities for professional growth. These additional perks can enhance job satisfaction and contribute to a fulfilling career in project management.
How to Increase Your Project Management Salary?
As we've discussed above, many factors influence your salary as a project manager. However, the good news is that you can take many simple steps to improve your employability and demand a higher salary.
Firstly, consider earning a graduate degree, such as an MBA or an MSOL, to advance your knowledge in the field. Say you've already earned a master's degree and have considerable experience. At this point, you may want to learn new skills and boost your salary. In this case, you can pursue advanced certifications such as a PMP or PRINCE2 to enhance your skills and credibility. Doing so allows you to prove your expertise and ability to deliver results.
Next, you can look for opportunities to take on bigger, more challenging projects within your current organization. The PMI survey shows that the bigger the team and the bigger the project, the higher your earning potential. For example, as noted in the report, project managers working in a team of less than five members earned a salary of $106,000, way less than those working in a team of 20+ members, who earned a salary of $144,000.
To increase your earning potential as a project manager, you should also be prepared to negotiate your salary and other benefits. To prepare for salary negotiation, do your homework and research the standard salary for your industry, including factors like education, experience, and location. Additionally, clearly articulate your achievements, skills, and the value you bring to the organization beforehand.
Lastly, you should utilize networking opportunities through industry events, professional associations, and professional organizations. Doing so allows you to build relationships with industry professionals, potential employers, and mentors, stay informed about job opportunities and industry trends, and gain insights and advice from experienced project managers.
Is Project Management a Good Career?
Becoming a project manager can be highly satisfying, especially if you enjoy working with others and have strong organizational skills. Planning a project, collaborating with others to overcome obstacles, and seeing your efforts end in measurable success can be highly rewarding. Moreover, as a project manager, you can work on many different types of projects, allowing you to explore various products and technologies across different industries.
As a project manager, you can also advance in your career and become a senior project manager or director of project management, or you can work at an executive level, including as a vice president. Adding to the benefits of becoming a project manager is that management skills are in high demand, with BLS reporting about 1.1 million openings each year over the decade in management occupations.
A career in project management offers a thrilling journey; however, just like with any other endeavor, there are potential downsides to becoming a project manager. Project management often involves meeting deadlines, limited resources, and unpredictable obstacles, which can be stressful. Moreover, managing diverse teams and personalities effectively can be challenging.
Conclusion
Project managers play an important role in ensuring projects process and reach completion according to plans. Therefore, these professionals typically enjoy a competitive salary and attractive perks, influenced by factors such as experience, education, and location. While the salary can vary significantly, one can't deny the satisfaction derived from seeing a project come to life.
Now that you better understand what your future as a project manager can look like, you can take proactive steps toward reaching your dream. Take the first step today by exploring our MBA and MSOL programs and learn how each degree can help you gain advanced skills and open new career opportunities.
Frequently Asked Questions:
Is project manager a high position?
As a project manager, you must oversee projects from initiation to completion, manage budgets and resources, and ensure project goals are met. Therefore, being a project manager is generally considered a high position within many organizations.
What is the highest-paid project manager?
In general, project managers in industries such as IT, construction, healthcare, and marketing tend to have higher salaries due to the complexity and scope of projects they manage. However, the highest-paid project manager is a financial project manager with a salary of $125,131.
Can you make good money as a project manager?
Yes, as a project manager, you can make good money. On average, you can expect a salary of $120,000.