As more businesses adopt a product-centric approach in their workflow, several questions about Product Owner vs. Product Manager arise. Is it necessary to have a Product Manager and Product Owner? Is it necessary to limit it to one? Who will take the lead if both are present? Is a scrum product owner different from an agile product manager? When it comes to creating a fantastic product, does it make a difference? One of the most critical questions is the ‘product owner vs. product manager salary.’
Even, Product Owner responsibilities are different from Product Manager.
Like all other project & product techniques and frameworks, Agile and Scrum create new positions. The following are three of the most notable roles: Scrum Master (SM), Product Owner (PO), and Product Manager (PM). Each of the three positions is a higher-level position with competitive remuneration. You can learn more about the KnowledgeHut Agile courses online.
In most cases, a Product Manager is in charge of the why. They shape the product roadmap on the requirements and desires of people. They are primarily concerned with financial data and whether the product is progressing in the proper direction on a broader scale.
On the other hand, the Product Owner is in charge of the product backlog's creation and management. They're up and running, and they're on a tight schedule. It's all about Scrum, back-and-forth with developers, and getting things done for them. The SPOPM can help you.
Product Owner Salary Vs Product Manager Salary - Overview
When we talk about Product Manager vs Product Owner salary, three factors decide. They are
- Career Path
While both career professionals need the same degree to succeed, they specialize in unique areas. They experience continuous work in the field and receive promotions to become product managers or product owners.
One thing that makes a professional stand apart from the competitors is a specialization course. Agile courses online can help you become a master in the field and reach that promotion before gaining years of experience.
The location makes a lot of difference too. For example, the salary of either a PM or a PO based out of Mumbai would be higher than that of a person based in a Level 2 city like Pune.
Another factor that affects a product manager or product owner’s salary package is the type of industry. If the knowledge and expertise gained over a period are put in the right company (gaining experience), the salary package will always be favorable. Industries, such as finance, software development, manufacturing, healthcare, transportation, biotechnology, and aviation, pay handsome salaries to product owners and managers.
Product Management is currently one of the highest-paying domains in an organization. You can always look forward to increased roles, responsibilities, and salary packages by following the right path.
What is the Average and Highest Salary for PO & PM in 2022?
Product Managers typically make more money than Product Owners. Again, because each job has a default interpretation, the latter is less sophisticated. They are simply distinct duties (if you want them to be).
Average: As per August 2021 research data from Glassdoor, the average annual compensation for a Product Manager in the United States is around $111,775, and that of a Product Owner is $87,637.
Highest: AS per Glassdoor, the highest annual salary is around $172,945 for a Product Manager (at Bloomberg), and it is approx. $123 609 for the Product owner (at Morgan Stanley). [Ref.]
Besides product manager vs. product owner salary, these two have many other differences.
Top Paying Industries for Product Owner & Product Manager
The product owner and product manager are two job roles that receive recognition and stay important, regardless of the economic situation. However, factors like geographical location, experience, and certifications have a pivotal role in deciding the salary, where some industries top the list.
Companies such as IT companies, banking services, defense and aerospace, consultation, tech & internet, telecommunications, and transportation & logistics value Product Managers and Product Owners more than the essential goods & services industries. So, if you are looking to make a career in any of these directions, it is always suitable to opt for these industries.
Seek the assistance of a certification course to speed up the increment process in the company. Agile methods online from the right institute can help boost your package with ease.
Who Earns More: Product Manager or Product Owner?
Product Owners are well compensated. According to Glassdoor's data, the average total base annual pay for POs in the United States is slightly under $101,000. POs, like PMs, have an extensive compensation range, ranging from $38K to $389K. The PO compensation mileage, like that of PMs, may vary, so make sure to examine salaries for target sectors and places.
Also read - Project Manager Vs Product Owner: Key Differences
Factors That Impact Their Salaries
Some factors can influence salaries and compensation –
- As the entry-level product managers generally have the same tasks as product owners, their salary ranges may be similar.
- Product Managers are more likely to be found in major corporations, resulting in higher wages.
- A Product Manager is the most likely role for a product person in a start-up. The average product manager's compensation may be lowered due to a higher percentage of start-ups today.
- Of course, any other wage comparisons must be made by considering the company you work for and the place where you work.
Salaries for the product managers and product owners are calculated based on educational qualification, experience, and locations.
Talking of Product Owner vs Product Manager salary, the latter one will make more than Product Owners. They’ll have an average salary of around $102,473 per year, whereas the product owners earn about $98,113. However, their difference in pay will depend on the experience and type of employment in the company.
Product Managers and Product Owners share a set of benefits like paid-off time, family leaves, health insurance, and health savings accounts. Again, this depends on the type of employment and organization they are working for. They both have different roles and are not competing against each other. Some companies may give more salary to product owners than the manager. The variations in wages primarily rely on the region, niche, companies, project, employment type, and other aspects. Some companies may even require a product manager to work more comprehensively than the product owner or vice versa.
Some of the main factors that affect the salary scale of these two job roles are-
- Size of the Company- If a company is a small startup, it may have a limited budget. Their requirements would also be more minor. Hence, the salary amounts of both the job roles may scale down.
- Area or Location of the Company- America has a different pay scale for both the roles than Europe. The salary scale hence differs from site to place.
- Products or Processes- Companies may require a product manager to work comprehensively with developments and planning. They may need a product owner to work comprehensively within the development team. The incorporated tasks, assigned roles, and responsibilities can affect the salary scale of these professions.
Ultimately everything comes down to Individual performances. There is not much difference between the salaries of PO and PM. If you have a holistic approach to the profession, you’ll get a better pay scale with growth.
You can always experience a considerable difference in the salary through a course specialization. KnowledgeHut SPOPM course is a stepping stone to increasing your compensation and getting a much-awaited job promotion.
Companies across various industries and locations are adopting agile product development or combining it with traditional product management—such as the predictive, elegant, and hybrid approaches currently covered with PMI's Product Management Professional certification. Now after knowing the economic aspects of the two roles, you can make informed decisions for your career and future.