Updated: October 23, 2024- 5 min read
At the time of writing in July 2024, almost 40,000 Product Manager roles are currently open on LinkedIn. Even as the economy rights itself after several difficult years, uncertainty remains the only thing we know for sure. But one thing never changes: Product matters. As our CEO put it, the best Products win. The reason why is:
When times are tough, people are more selective
When discretionary spending is scarce, people seek out value
Good products can adapt to changing circumstances and stay relevant
Product is paramount. But that’s not all: Software has eaten the world, and virtually all companies are now, to some extent, user experience companies. Product Managers own the customer experience, they own the Product, and so their role is even more critical in today’s economy.
This is rosy news for those seeking their first Product Manager job. Basic economics confirms that when demand exceeds supply, prices go up. But how far up do they go?
Product Managers are in demand. But the sky is not the limit.
Last year, we surveyed 7,000 Product Managers at organizations of all sizes for our Future of Product Management Report. Most PMs we surveyed were seeking a salary increase of at least 20%, whether through a promotion with their current employer or through a more lucrative offer elsewhere.
We spoke to the recruiters. We looked at the figures. And I’m sorry, PMs, but here's the hard truth: a 20% raise was never going to happen.
Yes, you’re in high demand. You’ve been dealt a good hand. But you need to play it strategically. And if you’re hiring Product Managers, you’re going to want to make an appealing offer, but also look beyond salary to find other ways to attract and retain Product talent in today’s economy.
First, let’s take a look at the Product Management salary bands that are realistic: Fear not, they are still highly competitive against other professional occupations!
What Do Product Managers Make in 2024?
Income, rather like the weather, the side of the road you drive on, and the options available on Netflix, varies depending on where you live. Product School's home base is in Silicon Valley, so we looked into typical base Product Management salaries in the US*. Here are the averages for 2024 for different types of PMs:
Associate Product Manager (APM): Average Salary: $86,000 / year
Product Owner (PO): Average Salary: $110,000 / year
Product Manager (PM): Average Salary: $126,000 / year
Product Leader (PL): Average Salary: $147,000 / year
Senior Product Manager (SPM): Average Salary: $152,000 / year
Group Product Manager (GPM): Average Salary: $195,000 / year
Principal Product Manager (PPM): Average Salary: $189,000 / year
Vice President (VP) of Product: Average Salary: $199,000 / year
Chief Product Officer (CPO): Average Salary: $232,000 / year
If you’re hiring Product Managers, ask yourself, taking into account regional differences and the industry that you’re in: Is the salary you’re offering competitive? And if you’re seeking your next pay rise, ask yourself if a 20% increase is really in line with market realities. And in both cases, take a peek beyond simply monetary compensation…
Beyond salary, other things matter in a Product Management job offer
Salary matters. But so do other things too. We’ve explored this topic in depth in articles like Recession-Proof Retention: How to Maintain and Motivate Your Product Teams During an Economic Downturn. Broadly, Product Managers value three areas beyond salary:
The Employee Experience
Product Managers are prepared to work hard, but also proactively seek out work-life balance. Hybrid or remote work is highly praised, as are employers that are considerate about their employees mental health and work hard to foster a positive, tolerant, diverse, and accepting workplace.
The Meaning of the Work Itself
Product Managers value work that has an impact. This could be at the high level of the mission of the company, but it can also be at the more everyday level of solving interesting problems and working on challenges that feel important. Not every company is trying to change the world, and that’s OK, but the purpose of the work PMs are doing should be clearly communicated.
The Opportunity for Career Advancement
Spoiler alert: Only 35% of companies regularly assess their content team’s level of maturity. Product people are future-focused and want to learn and grow. Building out clear PM career paths and providing training opportunities to help PMs reach them is low-hanging fruit that companies can go for now.
Whether you’re hiring your dream PM team or you have your eye on your next job or promotion, salary matters. Setting realistic expectations that factor in both talent demand and economic realities will help connect the right jobs with the right job seekers. Salary is important but it's not everything: Considering employee experience, meaningful work, and opportunities for advancement will help both employers and job seekers create teams that are a joy to work for.
*Salaries are based on averages of the aggregate data reported by Comparably, Glassdoor, Indeed, Levels FYI, Zippia, and Built In.
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Updated: October 23, 2024
