Are you contemplating your career options and wondering if Product Managers are paid more than Engineers?
Yes, Product Managers are usually paid more than Engineers. The average base pay for Product Managers is $109,000/year, while the average base pay of Engineers is $92,000/year. There are some exceptions to these income levels. However, Product Managers generally earn higher incomes than Engineers.
There has been a steady increase in demand for product managers in the last decade. Suitable candidates with experience are rewarded generously as they can make or break the company depending on their level of seniority. The more responsibility the company puts on the Product Manager, the more they compensate them with remuneration.
How Much Do Product Managers Get Paid?
Product Managers are paid between $96,010/year and $200,000/year depending on the industry, location, and seniority of the position. These figures are based on the latest Glassdoor statistics for Associate Product Manager’s average base pay to the high level of a Chief Product Officer average base pay.
Between these two extremes, Mid-level Product Managers earn around $108,992 per year, Senior Product Managers earn around $123,895 per year, and VPs of Product Management earn an average of $181,145 per year in the US. Many PMs are also rewarded with profit shares and other benefits within their package.
Given below are the three key factors that affect a Product Manager’s pay scale.
Product Managers in the tech industry are paid more on average because of the rapid pace that goes along with the industry.
The Product Manager needs to be excellent at staying up to date with everything that’s available with different technologies as they’re developed.
2. Experience and Studies
Product Managers that have more experience are paid more because experience increases a Product Manager’s skills immensely.
The same applies to Product Managers that have an educational background related to the position.
Depending on which country you’re in, your remuneration will differ.
Product Managers in the US are paid more on average compared to other countries such as Australia, New Zealand, Germany, Canada, and the UK. Salaries also differ from state to state.
Related Further Reading:
- Are Product Managers Respected? (How To Gain Respect As A PM?)
- Do Product Managers Travel? (Why, When, And Benefits Of Travel)
- Are Product Managers Engineers? (Product Managers Vs. Engineers)
- Do Product Managers Have Direct Reports? (Yes And No)
How Much Do Engineers Get Paid?
Of course, there are thousands of different levels of Engineers, but for today’s discussion we’ll refer to entry-level Software Engineers.
According to the latest figures on Glassdoor, software engineers are paid between $75,000/year and $170,000/year. This range refers to the bottom level “Associate Software Engineer” to the highest level of “Distinguished Software Engineer.”
Between the lowest and highest levels, Senior Software Engineers earn around $121,500 / year. On average, Principle Software Engineers earn about the same but also have other benefits included.
The three major factors that determine an Engineer’s income are as follows.
Computer Hardware and Software Engineers are paid generously and, on average, are the highest-paid Engineers.
Engineers in aerospace, nuclear, chemical, electrical, and biomedical fields are also paid handsomely.
Experience and Studies
Having experience and knowledge in the relevant field will enable you to apply to higher-end positions. This applies to virtually all fields of work.
If you have no experience, you’re going to have to work your way up from the bottom levels of engineering.
Location is another factor that will play a part in how much income you receive because different places have different costs of living attached to them.
On average, Software Engineers are paid more in the US, but the cost of living is also more than in other countries.
Do Product Managers Make A Lot Of Money?
Yes, Product Managers make a lot of money, especially in the tech industry over the last 10 to 15 years. They are paid an average of $109,000 per year or more, depending on the level of management they’re in.
Companies pay Product Managers generously, as so many responsibilities weigh on the PM’s shoulders. A PM with enough seniority can either drive a company to success or failure.
Product Managers in the tech industry earn a lot because of the rapid pace of the industry. Tech companies need PMs that can keep up with the customer’s needs in relation to the technology currently available.
Is Product Management A Good Career?
It’s definitely a good career in terms of remuneration. But if you don’t deal with extreme amounts of stress very well, it’s not a suitable career for you.
It depends on what type of person you are. Product Managers need to focus on a variety of different things to do their job correctly. Software Engineers might work the same amount of hours, but they get to focus on specific tasks within their scope of work.
If you’re a very charismatic person who gets along with everyone and understands how people think or behave, Product Management might be the career for you. As a PM, you’ll have to communicate effectively with all of your colleagues, subordinates, and superiors. Not only that, you also have to communicate well with customers and investors.
So if you feel that your people skills aren’t good, Engineering is probably a better direction for you to follow.
Is Software Engineering A Good Career?
Software engineering is a good career. Even though the pay is slightly lower than Product Management, it’s still far above the average. Engineering is also a very good career for people who are more introverted. This is because PMs need to interact with hundreds of different people every month.
Software Engineering has more flexibility in terms of where you can work. Many companies allow Engineers to work from home to accommodate their family’s needs. You don’t have to be good with people to be good at engineering. So if your people skills are lacking, engineering is better suited to you.
Related Further Reading:
- Do Product Managers Code? (Yes And No, Here’s Why…)
- Are Product Managers Paid Well? (Actual Salaries They Get)
- Is Product Management Part Of R&D? (How It Differs From R&D?)
Things To Keep In Mind
Product Managers are paid more than Software Engineers according to the latest figures on Glassdoor. The need for experienced Product Managers has increased exponentially in the last 10 to 15 years, especially in the tech industry.
Product Managers are paid well because they have an enormous workload to deal with. They have to be excellent with business decisions and public relations.
Ultimately, Product Managers move the entire company into the direction needed to satisfy the market’s needs and wants. They make big decisions that determine the success or failure of the company.
Although Engineers are highly skilled at what they do, it’s easier to find a skilled Engineer compared to a skilled Product Manager. This is because there’s a lot more to being a Product Manager than just learning the basic skills and requirements.
The best Product Managers that are paid the most have skills that aren’t taught in any college. So the supply of skilled PMs is low, and the demand is high. The supply of Engineers is higher, and the demand is therefore lower. This also equates to a lower salary.