If you’re curious about the “average project manager salary by company size,” this article will give you the answers. We’ll explore salary differences for project managers working in small, medium, large, and enterprise-level organizations. Knowing these insights can help you negotiate better pay or decide the best career move.
Key Takeaways
Experience and company size significantly influence a project manager’s salary, with larger organizations generally offering higher pay.
Project managers in industries like consulting, pharmaceuticals, and IT tend to earn higher salaries compared to those in education and training.
Certifications, such as PMP, and higher education levels are key factors that can substantially increase a project manager’s earnings.
What does a Project Manager do?
Project managers are critical in the organization, planning, and execution of projects, confined within certain constraints like budgets and timelines. Their responsibilities include:
Defining the project scope
Staying on schedule
Efficiently managing project resources
Documenting the project’s progress
Maintaining clear communication with all stakeholders involved.
Alongside these duties, project managers also shoulder the responsibility of evaluating risks and heading quality assurance for a successful project outcome. They frequently use different methodologies like Agile, Lean, and Scrum for process optimization and productivity enhancement. Project managers are in demand across various industries including construction, IT, healthcare, and finance, highlighting their versatile skill set.
What are the qualities of a good Project Manager
Exceptional project managers combine strategic leadership skills with technical management capabilities, which empowers them to effectively manage complex project elements. They excel at delineating project scope and aligning resources and stakeholders towards business targets. Strong communication skills, including active listening, are vital for managing projects and teams successfully.
Proficient project managers possess the following skills, which are essential for both regular and anonymous project manager employees:
Motivating team members
Managing stakeholder relationships and customizing communication
Displaying integrity and accepting accountability for mistakes
Learning from mistakes
Efficiently dealing with uncertainties such as external constraints and limitations of remote projects
Common Pay Structure Explained
The typical yearly salary for a project manager in the US hovers around $93,600. This base salary is frequently boosted by bonuses, varying from $2,000 to $17,000, contingent on the complexity and success of managed projects. Commissions for project managers can also be significant, ranging from $15,000 to $25,000. So, how much does a project manager earn in total? It depends on various factors, including the industry, location, and individual performance.
Entry-level project managers with one year or less experience typically earn around $66,000, while those in their early career (one to four years of experience) see an average salary of about $78,000. As project managers gain more experience, their salaries increase. Here is a breakdown of average salaries based on years of experience:
1 year or less: $66,000
1-4 years: $78,000
5-9 years: $96,000
10-19 years: $108,000
For seasoned project managers with over twenty years of experience, salaries can reach approximately $117,000. This structure highlights the potential for significant financial growth in the project management field, emphasizing the value of experience and longevity in this career path.
How Much Does an Project Manager Make in Small, Medium, and Large Companies?
Company size significantly influences the average salary of a project manager, with larger organizations generally offering higher pay. Project managers in sizable organizations usually garner heftier salaries due to the complexity and responsibilities tied to managing bigger teams and more elaborate projects.
Though smaller companies may offer lesser overall remuneration, they frequently present project managers with chances for wider roles and augmented responsibilities, beneficial for career advancement.
Small Companies (1-50 employees)
Project managers in smaller companies usually receive salaries at the lower end of the range. However, these roles often come with broader responsibilities and opportunities to gain diverse experiences, which can be beneficial for career development.
Medium Companies (51-500 employees)
Mid-sized companies provide higher project manager salaries than smaller companies but lower than large corporations. In these organizations, project managers often deal with larger teams and more complex projects, which can lead to increased compensation. Titles in mid-sized companies may include ‘Project Management Specialist’ or ‘Project Management Consultant’.
Large Companies (501-1,000 employees)
In larger firms, project managers usually draw higher salaries due to the added responsibility of supervising larger teams and more substantial projects. These organizations often provide additional cash compensation and benefits, further increasing overall earnings.
Enterprise-Level Companies (1,001+ employees)
Corporations at the enterprise level often provide the highest salaries for project managers, mirroring the intricacies and scale of project management in such massive organizations. Project managers at these firms, such as IBM, JPMorgan Chase & Co., and Deloitte, often receive substantial compensation packages.
Additional Factors Affecting Project Manager Salaries
While the size of the company is a significant factor, other elements also substantially influence project manager salaries. These include:
The industry in which a project manager works
Their level of experience
Their education and certifications
Specific project management methodologies
For example, certain techniques can lead to greater earnings than others.
Industry
The selection of industry can greatly affect a project manager’s salary. Some of the highest-paying sectors for project managers include:
Consulting: project managers in this sector have a median annual salary of $132,500
Pharmaceuticals: project managers in this industry earn around $130,000
IT: the median base salary for project managers in the IT sector is approximately $125,730 in the United States.
Other high-paying sectors include resources, energy, and utilities, with median salaries of $101,254. Project managers in construction and engineering generally earn more than those in software, IT, and marketing.
Conversely, the lowest paying sector is Training/Education, with a median annual salary of $84,500.
Experience Level
The level of experience is another important factor that can affect project manager salaries. Entry-level project managers with one to three years of experience earn an average base salary of $76,951. As they gain more experience, their salaries increase.
Project managers with more than fifteen years of experience can earn an average base salary of $109,322, not including average additional cash compensation, which is considered a common project manager salary. The impact project manager salary has on this figure is significant, as it demonstrates the value of experience in the field and how it affects project manager salary ranges. Recent project manager salaries also serve as a useful benchmark for professionals in the industry.
Education and Certification
Educational qualifications and project management certification are also instrumental in ascertaining project manager salaries. A PMP certification, for example, can increase a project manager’s compensation by 22%. Earning such certifications validates skills and experience, often translating into higher salaries.
Higher education levels also correlate with increased salaries, as do hands-on experience and continuous learning.
Average Total Cash Compensation
The average total cash compensation for project managers can greatly differ depending on factors such as experience, education, and the size of the company. For example, the salary for a project manager with a four-year college degree is approximately $99,138. The median US salary for project management professionals as of 2022 is $95,370.
Salaries can range significantly, with the bottom 10 percent of project management professionals earning around $52,500. The chosen project management methodology can also impact pay, with some methodologies resulting in higher earnings.
Job Titles and Their Salaries
The job titles of project managers and their corresponding salaries can significantly differ based on responsibilities and seniority level. Here are some examples:
Project Manager: $80,000
Senior Project Manager: $100,000
Program Manager: $120,000
PMO Manager: $140,000
PMO Executive: $157,400
These figures are just averages and can vary depending on factors such as location and industry.
This section covers the job title project manager and their corresponding average salaries.
Construction Project Manager
Construction project managers are responsible for overseeing construction projects, including equipment installations, laboratory renovations, and deferred maintenance projects. Their salaries vary based on factors such as experience, company size, and geographic location.
Technical Project Manager
Technical project managers in the software and IT fields in the USA earn an average salary of $96,583.
Their responsibilities include managing technical projects and ensuring successful delivery.
Senior Project Manager
Senior project managers typically earn higher salaries, with an average of $120,000 annually. Those working in larger enterprises can sometimes exceed $130,000 per year. In the tech industry, salaries can even reach upwards of $140,000 annually.
Senior project managers oversee project progress, manage timelines, and ensure project goals are met. They also play a critical role in stakeholder communication and team leadership.
What is the average Project Manager salary by company size: 2023?
In 2023, project managers operating in teams of less than five members reported a median salary of $105,000. On the other hand, those managing teams with 20 or more members reported a higher median salary of $130,000. The size of the team managed positively correlates with the median annual salary of project managers, giving us an insight into average project mgmt salaries.
What is the average Project Manager salary by company size: 2024?
In 2024, project managers managing small teams (less than five members) report a median salary of $105,000, while those managing larger teams (20 or more members) report a higher median salary of $130,000. Based on these trends, project managers are seeing salary increases, with median salaries potentially reaching $110,000 to $135,000, in line with the growing demands and complexities of their roles.
Top Companies Hiring Project Managers
Several leading companies that are actively recruiting and hiring project managers include:
Google
Amazon
Microsoft
Apple
Facebook (Meta)
IBM
These companies are recognized for their lucrative project management roles, competitive salary packages, and developing industry tailored solutions.
What is the outlook for Project Manager pay?
The future prognosis for project manager pay is optimistic. As of May 2023, the median annual wage for project management specialists was $98,580. The employment of project management specialists is expected to increase by 6 percent from 2022 to 2032, outpacing the average growth rate for all occupations.
Around 68,100 openings for project management specialists are projected each year, driven by the need to replace workers.
Project Manager Salary: Men vs Women
The ratio of male to female project managers is 3:1, indicating a higher number of males in the role. Globally, female project managers earn approximately 20% less than their male counterparts. Despite the gender pay gap being below the global average, it remains significant.
What are the US states with the highest Project Manager pay
California provides the highest average annual salary for project managers, standing at $101,635. Other states with high salaries for project managers include:
Massachusetts: $99,738 per year
New Jersey: $98,945 per year
Connecticut: $98,736 per year
Rhode Island: $97,987 per year
Summary
In summary, the salary of a project manager varies significantly based on multiple factors such as company size, industry, experience level, and education. Smaller companies may offer lower salaries but provide broader roles, while larger firms and enterprise-level companies offer higher pay due to the complexities and responsibilities involved. Additionally, industries like consulting, pharmaceuticals, and IT are among the highest-paying sectors for project managers.
The outlook for project manager salaries is positive, with increasing demand for skilled professionals expected to grow. Achieving higher education and obtaining certifications can significantly boost a project manager’s earning potential. Despite the existing gender pay gap, opportunities for both men and women in project management continue to expand. Understanding these factors can help project managers navigate their career paths more effectively and maximize their earning potential.
Frequently Asked Questions
How much does a project manager make in a small company?
In small companies, project managers often earn lower salaries but have broader roles and responsibilities, which can support career growth. Keep this in mind when considering opportunities in small companies.
What factors affect project manager salaries the most?
The most influential factors on project manager salaries are company size, industry, experience level, and education or certifications. Larger companies and high-paying industries like consulting and IT generally offer higher salaries.
What is the average salary for a senior project manager?
The average salary for a senior project manager is around $120,000 per year, but this can vary depending on industry and company size.
Which US states offer the highest project manager salaries?
The states with the highest project manager salaries in the US include California, Massachusetts, and New Jersey. These are good options to consider if you are looking for top salaries in this field.
How does a PMP certification affect a project manager’s salary?
A PMP certification can increase a project manager’s compensation by up to 22%, showcasing their expertise and often resulting in a higher salary.
