Tuesday, April 12, 2016

PMP® Certification Compliments Compensation: See Your Salaries Soar

Did you know the average annual salary can go up to $81,000 USD?  It’s exciting to study the  top 10 countries with the highest median annual salaries for project practitioners.





 


courtesy: pmi.org

Your resume gets only 6 seconds to strike an impression. The threshold is that small a window. The initial credibility has to be telling to take the conversation forward. The door opener ought to be something valuable. As testified by Project Managers in a survey published in techrepublic online journal, many accounted PMP®  certification as ‘the compelling factor’ in being counted. Else they won’t consider your CV. So the counsel is a PMP-packed profile will surely get past the screening process. Experience can further be strengthened with education. The PMP®  certification is more about the science of project management in delivering successful projects. Certification is a clear indicator that you possess the relevant knowledge and expertise. Research undertaken by PMI® shows that  Organizations that fully understand the value of project management  and place a high priority in creating a culture that recognizes its importance report 71 percent of projects meeting original goals and business intent versus 52 percent that place a low priority on it.


courtesy: Pulse of the Profession 2016 - PMI



Besides, chances that one can clear the checks and balances created by PMI are favorably presumed to be equipped with expertise and proficient in their profession. Does a PMP®  certificate make a Project Manager more successful in managing project with time, scope and budget? There is a business value to every deal signed. What’s the assurance the Project manager will deliver? Study reveals that a certified Project Manager, when weighed from all distinguishing parameters, has a better shot at success. And more often delivers.  For that kind of competence, the PMP®  professional commands an attractive compensation as compared to their non-certified counterparts.

The ninth edition of PMI’s Earning Power: Project Management Salary Survey states that “those with a PMP certification garner a higher salary (20% higher on average) than those without a PMP certification.”

Before we arrive at why salaries surge for certified PMPs as compared to the non-certified, let’s first deliberate why certifications count at all. Statistics reveal seven out of 10 projects fail. So what’s the best bet that a certified professional will perform? The PMI's 2008 Pulse of the Profession research found "that having project managers without PMP certification results in a lower percent of projects coming in on time and on budget—especially when less than 10 percent of the project managers in the company are PMPs. Organizations with less than 10 percent of project managers who are PMPs are also much less likely to indicate an increase in projects successfully meeting the goals and business intent."

This is not to drive home that certification alone is the clincher as there are other factors that do impact project completion, but one cannot downplay or undermine the significance certification lends to success. That’s the point.  The grind in getting a PMP certification is certainly rigorous given the prerequisite of practical experience and the hours invested in preparation to earn the credential. And the paycheck as well.

The informed insights as published in PMI’s Earning Power: Project Management Salary Survey  In the United States, keyed out project managers in the pharmaceuticals industry reported the highest median salary ($125,500), followed by those working in agriculture, mining and natural resources ($120,640) and consulting ($120,000). Other industries posting high median U.S. salaries include aerospace ($115,000), engineering ($112,000), utility ($110,425), government ($110,000) and information technology ($110,000).

The median salary of U.S.-based respondents holding a PMP certification was $111,000 versus a median salary of $91,000 for participants without PMP certification. 

Interestingly, the median salary was based on a number of key demographic factors, especially the Country of employment, PMP status, and years of project management experience, project team size and budget.  Some of the salient highlights listed below for your immediate attention:


Number of Years of Experience in Project Management

The median salary ranges from $47,657 (USD) for those just starting out in the project management field to $131,972 (USD) for those who have been in the field for 20 years or more. This represents an increase of 177% from low to high experience in the field. The difference in median salary is not as striking in China. For those with less than three years’ experience, the median salary is $21,073 compared with $29,178 (USD) for those practicing project management for 20 years or more.


PMP® Certification Status

The majority of participants in this study have the PMP® certification. Those with the certification earn more than those without in virtually all of the countries, though differences do vary by country. The largest differential is noted in South Africa where PMP® holders have a median salary 47% higher than those who do not hold the certification. Another telling factor is the length of time a person has held the designation of PMP® In nearly all countries, median salary steadily increases with PMP® tenure. In Taiwan and Saudi Arabia, the median salary of those who have been certified for 10 or more years is more than double those who have been certified for 5 years or fewer.

Position

Within the various levels of project managers, salary appears to increase with added responsibility. The rate of increase again varies by country. In Belgium, the median salary increases from $55,927 (USD) for a project manager I to $77,738 for a project manager II to $89,482 for a project manager III. In Saudi Arabia, program managers earn a median salary of $79,962 (USD), and portfolio managers earn upwards of $11,500 (USD) more than program managers and over $23,500 (USD) more than the highest level project managers.

Project Size

The size of projects managed, in terms of average number of team members and average project budget, also appears to have a positive correlation with annual salary. For instance, in South Africa, those managing projects with larger teams (20 or more people) have a median salary that is 72
% higher than those managing teams of one to four people. Likewise, in Hong Kong, those managing projects with budgets of $10 million or more earn 81% more than those with projects under $100,000 and 54% more than those with projects with budgets between $100,000 and $499,999.


The detailed report can be accessed vide PMI’s Earning Power: Project Management Salary Survey.  This article should help you decide about choosing the course about career acceleration development, especially Project Manager aspirants and Project Manager at the start of the career.

Good luck with your endeavors.



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