While it’s likely that you’ve heard of project managers, have you ever heard of product managers? Would it surprise you to learn that product management is one of the most rapidly growing occupations in the business world?
If you need any proof of how much product managers are in demand, you only need to look as far as product manager salary statistics. That’s what this article is about. We are about to explore the vocation of product management, including what it is, what a product manager does, the factors that affect compensation, a sample of product manager salaries, and more.
Let’s get to know the world of product management and the roles of product management professionals.
What is Product Management, and What Exactly Does a Product Manager Do?
The short answer is product management involves managing products.
Alright, that’s a glaringly obvious (but not very helpful) answer. So let’s elaborate, shall we? Product management is the department or process within an organization that ensures a product or service’s overall success. Product management covers everything under the product life cycle from initial discovery to its development, release, maintenance, upgrade or evolution, and much more.
Product management is considered a strategic function, managing the product or service so that it fosters business growth. To that end, product managers define the product’s vision and develop the roadmap for implementing that vision.
Product managers work with various clients and stakeholders to ensure that all parties are on the same page and heading towards a common goal. Product managers’ typical daily duties include:
1) Collecting and prioritizing ideas
2) Defining product features and the technical requirements
3) Determining the metrics of product success
4) Conducting product research, including customer feedback
5) Performing experiments to discover opportunities to improve the product
6) Presenting all findings and analysis to leadership
Main Factors That Determine a Product Manager’s Salary
The next time you’re keen on finding an Internet rabbit hole to fall down, consider this exercise that will also give you a better understanding of how things work. First, go to a job portal, say, Indeed.com, for example. Next, plug in your current job, and note the salary. Now go to another portal and another (there’s plenty: Ziprecruiter, LinkedIn, Indeed, Payscale) and repeat the process.
Have you noticed that the salaries vary from site to site? This variance happens because many variables affect wages. Here are the five chief variables that determine a product manager’s compensation or any other job.
1) Industry. Companies in newer, fast-growing sectors tend to pay product managers larger salaries, as they are better in tune with current trends. Conversely, older companies, whose longevity is a bonus as it implies job security, tend to be slower to adopt new methods and practices..
2) Location. Job location is a crazy wildcard—location factors into position demand. On the one hand, a large metropolitan area like New York or San Francisco likely has more businesses and offices, so there is a greater need for product managers, with salaries that reflect this and help cover the expensive costs of living typically found in big cities. But on the other hand, businesses located in more remote areas may have fewer candidates to draw upon and consequently offer salaries higher than the industry standard to attract applicants. Whatever the case, geography is a significant variable.
3) The individual company. Larger companies typically can afford to pay larger salaries. So it shouldn’t be a surprise that a massive corporation like Microsoft can offer a higher senior product manager salary than Steve’s Discount Computers and Bait Shop, for example.
4) Certifications. Companies want the best candidate for their buck, and “best” typically means the prospective employee brings valuable skills with them. Certifications tell a recruiter that the candidate knows their stuff and has the skills and talent to fill the position. Nowadays, when people exaggerate or outright lie on their resumes, a certificate verifies that the candidate is the real deal.
5) Seniority or rank. In the workplace context, rank is determined by the three E’s: experience, expertise, and education. In other words, how long have you worked in this position, what skills do you have, and what was your major in school? So naturally, lower-ranked, entry-level positions have fewer requirements and consequently have a lower pay grade than, say, a head of product salary.
So, the next time you see a job position clocking in at $90,000 a year, remember that a figure is an average number based on our discussed factors.
What’s the Average Product Manager Salary in the United States?
Let’s break down the average product manager salary by selected cities in the United States, reported by Indeed.com.
1) San Francisco, CA: $131,867 per year
2) Austin, TX: $123,216 per year
3) New York, NY: $121,110 per year
4) San Jose, CA: $118,644 per year
5) Seattle, WA: $110,804 per year
6) Dallas, TX: $109,193 per year
7) Atlanta, GA: $108,295 per year
8) Chicago, IL: $100,663 per year
9) Houston, TX: $96,790 per year
How Much Do Product Managers Make Around the World?
Now that we’ve covered the United States, it’s time to head out into the rest of the world. Is a product manager’s salary in the United Kingdom higher than a similar position in India? Let’s find out. Here’s a sampling of product manager salaries from selected countries. These figures come courtesy of SalaryExpert.com, SalaryExplorer.com, and Payscale.com.
1) Australia: $132,444 per year
2) Brazil: R$234.131 per year
3) Canada: $115,682 per year
4) China: ¥383,311 per year
5) France: €66,491 per year
6) Germany: €59,620 per year
7) India: ₹ 1,789,216 per year
8) Indonesia: 248,000,000 IDR per year
9) Israel: ₪253,007 per year
10) Japan: ¥7,000,000 per year
11) South Korea: ₩76760307 per year
12) Spain: €42415 per year
Which Companies Pay the Best Product Manager Salaries?
Not every company offers the same average product manager salary. Here’s a sample of the highest 16 paying companies for product managers, as of January 2023, reported by Indeed.com.
1) Meta: $172,974 per year
2) VMware: $164,061 per year
3) Boeing: $164,016 per year
4) Accenture: $158,812 per year
5) Amazon.com: $157,609 per year
6) Workday: $156,574 per year
7) Walmart: $150,895 per year
8) Oracle: $150,185 per year
9) DISYS: $150,156 per year
10) Block: $149,127 per year
11) Visa: $146,222 per year
12) ServiceNow: $145,307 per year
13) Intel Corporation: $144,264 per year
14) Cisco Systems: $142,346 per year
15) Uber: $140,896 per year
What Do Product Manager Salaries Look Like Based on Position?
A senior project manager’s salary is very different from a junior project manager’s, sure, but how different? Let’s look at a sampling of product manager titles and see the average pay. These figures come from Indeed.com and are, of course, subject to the variables mentioned above.
1) Junior product manager: $67,907 per year
2) Associate product manager: $79,208 per year
3) Product manager salary: $103,227 per year
4) Senior product manager salary: $133,234 per year
5) Director of product management: $149,984 per year
6) Principal product manager: $149,817 per year
7) VP of product management: $186,722 per year
How Do You Begin a Career as a Product Manager?
If the product manager role interests you and you would also like to earn one of the outstanding salaries we’ve listed, you may wonder how you can build a great career. Here is a short series of steps to make your product manager career dreams come true.
1) Sharpen the needed skills. Project managers must have a particular set of hard and soft skills. Soft skills include:
b) Critical thinking
c) Attention to detail
And the hard skills include:
a) Agile methodology
b) Market research
c) Business analytics
d) SQL database
2) Get the proper education. Many product managers have degrees in business, computer science, marketing, or other related fields. However, if your time, resources, and opportunities are limited, many online courses are available that you can take in your spare time and at your.
3) Try out your new skills. Sharpen your new skills by taking on product management projects at your workplace. If your company doesn’t have the projects you need, consider an online product manager bootcamp. Many bootcamps have industry-related projects hardwired into their curriculum.
4) Get that dream job. Once you’ve gained experience and obtained certification via online courses and bootcamps, it’s time to update your CV or resume and start looking for the ideal product management position. Consult online resources to help prepare for your interview. Consider an entry-level position or internship. Your chances of landing a good job with a high product manager salary increase if you focus your search on jobs where you already have experience with the subject matter or products.
And if you’re looking for a good product manager bootcamp, read on!
Do You Want Training as a Product Manager?
The University of Minnesota’s Carlson School of Management, in collaboration with Simplilearn, offers an intense six-month product manager bootcamp to help you master the critical elements of product management.
You will learn valuable skills like:
1) Customer Journey Mapping
2) Financial Modeling
3) Go to Market
4) Product Analytics
5) Product Development Lifecycle
6) Product-led Growth
7) Product Market Fit
8) Product Marketing
9) Product Roadmapping
10) Product Strategy
11) UX Design Process
12) Top tools used by product managers (Jira, Mixpanel, Google Analytics, and Balsamiq).
This valuable bootcamp offers vital hands-on practical learning experiences through projects and use cases via the curriculum. You will also tackle capstone projects on Facebook, Tesla, Instagram, Nike, and Netflix to get hands-on learning.
When you complete the bootcamp, you will gain your certificate and UMN Alumni Association membership.
So don’t put it off; sign up for this excellent bootcamp today, and take the first steps toward a better, more rewarding career with a high product manager salary!