How to get a better product manager salary
06 May 2020
When your employer is starting to see success from your products and an increase in clients, it’s time to ask for a salary increase. If you’re achieving your goals and reaching your targets, you can definitely ask for a higher product manager salary.
Discussing the salary can be challenging; some companies don’t really have an established product management culture in place. Some are hesitant to raise the salary as they perceive the role of a product manager differently from other companies. Some employers are just reluctant to raise wages for anyone.
You can increase your chances of receiving a raise if you know what is the average salary of a product manager, as well as what a good product manager earns. In this article created by our team at TMS, we’ll offer a guide to product manager salaries and how to negotiate a better one.
The Typical Product Manager Salary
Product management has recently become one of the most desired fields of work. The work is meaningful, the pay is usually good, and there are many options for career progression. Glassdoor lists product management as one of the top 10 jobs in America.
The product manager salary is variable due to a person’s career level, and their job performance. Generally, the salaries will vary between $61,000 and $200,000 or above.
The Factors That Determine the Salary
In the San Francisco area, the average pay is $140,000 per year. For those with 0-1 years of experience, the salary drops to $120,000 and for smaller companies, it’s around $100,000.
Job location is another important factor. A product manager in Dallas will earn, on average, $105,000. For the same job, product managers in Pittsburgh will earn $89,000 on average. Directors earn slightly more; $151,000 in Dallas on average and $129,000 on average in Pittsburgh.
So you can see that the salaries of product managers can vary greatly depending on the context, such as the role the manager has within a company; some product managers are more technical, while others are more business-oriented.
Determine your role within your company and try to negotiate a better salary.
How to Get a Better Product Manager Salary
Spending just a few minutes of your time on researching negotiation can earn you thousands of dollars more yearly. Most people don’t even try to negotiate the salary, and if they do, they leave money on the table.
Here are some valuable tips to improve your salary negotiation.
Doing proper research before you enter salary negotiations is invaluable. Knowledge is your advantage, and it’s vital to be aware of the market overall and being aware of the consequences of a failed negotiation. Information about salaries for product managers is vast and some of the best pages to investigate are:
The more information you have, the more likely is for your success. You’ll learn how to set your demands and what would be a fair offer.
Also take into consideration other factors that can change the scale of your salary, including your experience, location, sector, expertise level, and the size of your employer’s company. You need to evaluate all of these factors to present a fair offer.
The key to good preparation is to focus on what you have to offer, rather than how you will benefit. While the latter is important, the employer is less likely to increase your salary unless he can clearly see benefits for the company.
Make sure you demonstrate the fruits of your work and clearly show how your work has been beneficial in the company’s success. Record and track everything you do at work, and how your implementations and your work changed the course of a product.
New employees might find it hard to demonstrate the relationship between their work and tangible results, so it’s always valuable to consider getting an opinion from one of the more experienced members of the team.
Also, take time to sit down with your boss and ask them how you can contribute even more to the company’s success. Tell them you want to exceed expectations, and maybe hint about future compensations.
Make Your Case
You can use your current salary to negotiate a better one. Perhaps you have moved or are moving into an area where the costs of living are higher. Calculate them, and present them to your boss. Your case needs to be data-backed and flawless. Demonstrate your value to the company, and show them exactly why you deserve a raise.
If you’re moving to a new job, use your current salary to negotiate a better one, especially if the company in question is offering you a lower salary than your existing one.
Be Respectful and Empathetic About It
Give respect to your employer and have some empathy; avoid being aggressive or dominating. Show gratitude for your job and your current salary. There is a significantly higher chance of success if you bring respect and empathy to the negotiating table.
Pick the Right Moment
Timing is really important in salary negotiations. If it’s been a while since your last salary raise, it’s possibly time to try again. Be careful not to rush your decision, if you do receive an offer.
Instead, take some time to consider it. Take into account what this means for you, and how the raise is going to affect your work. Review the details on your own, and take the time to read the contract.
Present a Salary Range Instead of a Single Figure
Avoid a fixed number for your salary. Instead, present an acceptable salary range so that you can compromise, which gives you a sound and reasonable basis for negotiations.
Prepare for a Rejection
Be prepared for rejection, even if you think your offer is reasonable. Try not to be discouraged, rather, show respect and understanding, even if you get rejected. This will give you a better chance for future negotiations, and the boss won’t forget it.
Display Your Soft Skills
A product manager should have good soft skills and the negotiation table is a great place to prove them. You can explain how your soft skills benefited your work and the company, which will give you a higher chance of success.
Additional Perks You Can Ask For
Salary is not the only factor to consider. At the same time, you can add other perks into the negotiation, including:
- One of the best perks you can ask for is to work from home, in addition to the salary raise.
- Training and career development. Many employers will offer you this from the beginning, but you can ask for this when negotiating. It will show that you are a driven person, and you’ll have a bigger chance of a salary raise later on when you develop those skills.
- Stock options. Many companies give their employees stock options, especially those who are considered top performers.
- Mentoring or coaching. Ask for a mentor or a coach to guide or boost your career. This will aid your professional as well as personal development.
- More vacations. You can also negotiate longer vacations in your salary negotiations.
- Health and fitness benefits. One of the benefits of having a good job is access to fitness stipends and other health benefits.
Ending thoughts on the product manager salary
Negotiating your product manager salary is a process that takes time and preparation. Make sure you are a valuable employee before you begin negotiations. Negotiation depends on many variables; for example, your skills, experience, the timing and where you ask for the salary raise.
Everyone wants to do well for themselves, and having a good salary can improve job satisfaction. Be aware that not every boss will be prepared to give you a salary raise, even if you make a good case for yourself, however, if you don’t try you cannot succeed.
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