2011 Project Management Salary Survey

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1 ASPE RESOURCE SERIES 2011 Project Management Salary Survey The skills we teach drive real project success.

2 Table of Contents Introduction... 2 Gender... 2 Region... 3 Regions within the United States... 4 Age... 5 Education... 7 Certificates held... 8 Length of PMP certification Job title Education Project Manager salaries globally Raise in 2010? Size of raise in Bonus in 2010? Size of bonus in Raise in 2011? Size of 2011 raise Unemployed in Job concerns in Training days PMO office Grade of employer's project management practices Salaries in the United States Average salary by US region, company size, and industry ASPE all rights reserved Page 1

3 Introduction In order to better understand the salary, certification and training characteristics of the IT Project Manager market, ASPE-SDLC commissioned a global survey of project managers. More than 1,700 project managers from around the world participated; while just over half were from the United States, responses were received from 86 other countries as well. Gender As in previous years, nearly two-thirds (63.4%) of respondents were male. While the proportion of men has decreased slightly from last year (64.4%), it is clear that on a global scale, men dominate the profession. This, however, is not the case everywhere. In North America, men and women are equally represented, at 51.8% and 48.2% respectively. Women also slightly increased their representation of 46.8% from last year. Anecdotally, we do see more males than females in our American classrooms and at PMI chapter meetings. This coincides with collected data, but we are surprised at how large the gap is outside North America. Indeed, outside of North America, 82% of respondents were male ASPE all rights reserved Page 2

4 Region As noted earlier, just over half of respondents were from the United States, with the next most common countries being India, Argentina, Canada, Mexico, Italy, the United Kingdom, South Africa and Australia ASPE all rights reserved Page 3

5 Illustration 1: Percent of respondents from various countries Respondent country Other United States India Argentina Canada Mexico Italy United Kingdom South Africa Australia 6% 6% 5% 4% 2% 2% 2% 2% 21% 51% 0% 10% 20% 30% 40% 50% 60% Regions within the United States Within the United States, most respondents were from the southern and western regions, with California comprising 8.6% of respondents. In the United States, the technology industry is quite strong in western and southern states (notably California, Texas, and Washington), thus explaining the preponderance of respondents from those regions ASPE all rights reserved Page 4

6 Age As in previous surveys, most respondents were in their thirties and forties. But if we compare the age distributions of men and women, we see that there is a difference: men are more likely to be both older and younger than women, and that, on average, female respondents were slightly older than men. One possible explanation for this is that men have dominated the project management field for a longer period of time, and are thus more likely to be older, and potentially find it easier to enter into it at a younger age, thus are also more likely to be younger. By contrast, women are less likely to have been working as project managers for some time and perhaps find it more difficult to enter into the role at a younger age. This makes them more likely to be concentrated around the age group and, on average, slightly older than men. This can be seen in the box and whisker diagrams below. Half of all the respondents are represented by each box, and the line across the middle of each box is the median age ASPE all rights reserved Page 5

7 2012 ASPE all rights reserved Page 6

8 Education Respondents were highly educated, with nearly 80% of respondents possessing at least an undergraduate degree ASPE all rights reserved Page 7

9 Certificates held Respondents were also asked which project management certifications they had obtained. There was a strong geographic component to the results, with PMP being much more popular in North America than in other regions. In Europe, for example, PRINCE2 is more popular, and in Asia college-level certifications were more prevalent. World Region Total Africa Asia Europe North America South America Oceania Cert: PMP Count % 32.5% 38.5% 21.9% 61.8% 42.3% 28.6% Cert: PgMP Count %.0% 2.1%.8%.4%.0%.0% Cert: CAPM Count % 5.0%.7%.0% 1.1%.9% 4.8% Cert: PMI Other Count % 2.5% 7.0% 3.1% 1.3% 3.6% 9.5% Cert: PRINCE2 Count % 17.5% 1.4% 14.1%.8%.0% 14.3% Cert: TSPM Count %.0%.0%.8%.4%.0%.0% Cert: Other PM Count % 30.0% 16.1% 17.2% 13.2% 7.2% 28.6% Cert: College cert Count % 22.5% 29.4% 10.9% 13.2% 18.0% 23.8% Cert: None Count % 10.0% 16.8% 33.6% 17.8% 22.5% 9.5% Cert: Other Count % 7.5% 25.2% 18.0% 19.2% 22.5% 14.3% Total Count ASPE all rights reserved Page 8

10 Length of PMP certification Those respondents who held a PMP were asked for how many years they had their certification. On average, respondents had held the certification for 4 years, and the vast majority had held it for less than 10 years. While the PMP certification has been available for nearly thirty years, the vast majority of current holders received it within the last ten. This is either indicative of recent growth in the number of PMP holders, or that PMP holders after a certain number of years move on to other roles and are thus under-represented in surveys. Indeed, by reviewing the breakdown of project management experience and PMP tenure by age, we see that younger respondents were more likely to have obtained their PMP earlier in their careers. For example, those in their twenties had about 4 (3.98) years of project management experience and 2.5 years with a PMP, while those in their fifties had more than 15 years of experience but a PMP only for just over 5 years ASPE all rights reserved Page 9

11 Project Age If you have your PMP, how many years have you had it? management experience (in years): Mean N Mean N Mean N Mean N Mean N Mean N 1 Total Mean N ASPE all rights reserved Page 10

12 Job title Perhaps as expected, more than half of respondents had the title of Project Manager or Senior Project Manager. However, approximately 20% of respondents had titles that indicated broader responsibilities, such as portfolio manager or other general management titles. This could be reflective of an increasing number of former project managers moving into other roles in the organization ASPE all rights reserved Page 11

13 Education Project Management is a demanding and complex role, and to be successful practitioners require advanced education. On the whole, respondents were very well educated, with nearly 80% holding Bachelor or Master's degrees. Project Manager salaries globally When examining project manager salaries around the world, we see, as one would expect, that there is significant variation, ranging from an average of $36,200 per year in South America to $114,300 for the few respondents from the world's islands ( Oceania ). World Region Mean N Africa $58, Asia $39, Europe $65, North America $92, South America $36, Oceania $114, Total $77, ASPE all rights reserved Page 12

14 Raise in 2010? Nearly 60% of respondents had a raise in 2010, with respondents in South America and Asia most likely to receive one ASPE all rights reserved Page 13

15 2012 ASPE all rights reserved Page 14

16 Size of raise in 2010 Those respondents who did receive a raise in 2010 had an average increase of 6.5% Looking more closely, we see that average raises varied significantly by region. Respondents in South America and Asia received significantly higher raises in 2010 than those in North America or Europe. Perhaps due to the resource boom putting pressure on the demand for skilled project managers, respondents in South America saw an average raise of 14%, and those in Asia received an average of 10.2% ASPE all rights reserved Page 15

17 2012 ASPE all rights reserved Page 16

18 Bonus in 2010? Half of respondents received a bonus in ASPE all rights reserved Page 17

19 Size of bonus in 2010 Those respondents who had a bonus in 2010 received an average of 14%. Bonuses, however, were also distributed unevenly around the world, although not to the same extent as raises. The average percentage bonus was in the mid-teens ASPE all rights reserved Page 18

20 2012 ASPE all rights reserved Page 19

21 Raise in 2011? Nearly two-thirds of respondents expected a raise in ASPE all rights reserved Page 20

22 Size of 2011 raise 2012 ASPE all rights reserved Page 21

23 Unemployed in 2010 About 10% of respondents experienced unemployment in ASPE all rights reserved Page 22

24 Job concerns in 2011 Respondents were most concerned about a salary freeze or possible layoffs in Responses Percent of Cases Job concerns in 2010(a) N Percent Job concerns: Possible layoffs % 37.3% Job concerns: Hiring Freeze % 21.9% Job concerns: Salary freeze % 48.2% Job concerns: Salary decrease % 11.3% Job concerns: Outsourcing of job % 16.3% Job concerns: Skill requirements changes % 27.1% Job concerns: Reduced demand for your se % 25.7% Total % 187.8% a Dichotomy group tabulated at value ASPE all rights reserved Page 23

25 Training days Respondents received an average of slightly more than 5 training days per year ASPE all rights reserved Page 24

26 PMO office Nearly two-thirds of respondents worked in an organization with a Project Management Office ASPE all rights reserved Page 25

27 Grade of employer's project management practices Most respondents gave their employer middling grades in terms of project management practices, with 70% saying that they would rate them as Fair or Good. Salaries in the United States What factors most influence salaries? One would expect that years of experience, certifications, education level, industry, and regional wage rates would strongly influence average project manager salaries. Because of concentration of respondents in the United States, and the very wide geographic distribution of other respondents, a more detailed salary analysis can only be meaningfully applied to respondents from the United States. Average salary by US region, company size, and industry Three broad variables that have a significant impact on average salaries are the size of the organization, the industry within which it operates, and the region where it is located. Generally, respondents in the Northeast, who worked for the federal government, and for organizations of less than 50 people had the highest salaries. Similarly, those in the South, and who worked for mid-sized organizations or in the non-profit sector had the lowest average salaries ASPE all rights reserved Page 26

28 Company size 1-49 $ $ $ 1,000-9,999 $ 10,000-49,000 $ 50,000-99,999 $ US Region Northeast Midwest South West Group Total , Group Total Company Agriculture / Mining $ type of business Beverage $ Communications / Media $ Construction / $ Engineering Education $ Energy $ Finance / Banking $ Government $ US Federal Government $ Information Technology $ (IT) hardware Information Technology $ (IT) services Information Technology $ (IT) software Manufacturing $ Medical / Pharma $ Non-profit $ Retail / Distribution / $ Consumer Services, including $ consulting Transportation $ Utilities $ Other Group Total ASPE all rights reserved Page 27

29 Reviewing in more detail, it's possible to build a model that analyzes the findings more closely and provides a better understanding of what specific attributes are closely related to increased or decreased salary for American respondents. With the information available it's possible to explain a quarter (R 2 =0.254) of the salary variation. The analysis finds that the biggest predictors of base salary for Project Managers are their job title, their amount of work experience, and their gender. While all variables were analyzed only a subset were found to be predictors. The table below summarizes these effects: Variable Base Amount $74,890 Male $6,069 For every year of paid project management experience Increase (decrease) in base salary when other variables are held constant $1,431 Have a job title of 'Project Manager' -$17,051 Have a job title of 'Senior Manager' or equivalent $12,353 Have a job title of 'Project Lead' -$16,867 Have a job title of 'Senior Project Manager' -$7,461 Work in the IT services industry $9,605 Work in the US federal government $20,060 Work in the medical or pharmaceutical industries $8,884 As in previous years, women, even with the same education, title and experience, tend to have lower salaries than men about $6,100 less per year. As one would expect, increased experience wins a higher salary about $1,400 per year of experience. Those with lower level job titles ( Project Manager ) tend to earn less than those with more senior titles like Senior Manager. Above all, it pays to work in the IT services, medical or pharmaceutical industries, or the federal government. All three of these industries tend to pay significantly more, all other things being equal ASPE all rights reserved Page 28

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