Product Owner vs Product Manager Salary

Product manager and product owner are two different jobs in product development. Both serve similar goals, yet they play different roles and call for different skill sets. These professionals handle the complex relationship among market demands, consumer expectations, and technological improvements. However, there is a clear difference between the Product Manager's Salary and the Product Owner's Salary. Both of them focus on planning and refining the products and services to enable businesses to establish better user-centred product development methods. This blog post will explain product owner vs product manager salary, as well as how their jobs within an organization set them apart.

Who is a product owner?

The product owner on a Scrum team is responsible for the project's completion. By controlling and refining the product backlog, the product owner aims to optimize the value of each product.

Who is a product manager?

A product manager defines what success for a product looks like, gathers support from a team to make that vision a reality, and determines the consumer need and more significant corporate objectives that a product or feature will complete.

Similarities Between Product Owner Vs Product Manager Salary

The roles of product owner and product manager may differ, but they have some similarities in the various aspects of salary. Let's have a glimpse of the similarities.

• With expertise, salaries for both positions rise significantly. Naturally, entry-level workers will make less money than those with years of experience and a track record of accomplishment.
• Salary increases for both positions can be attributed to suitable certificates and qualifications in Agile techniques, product management, or specialized industry knowledge.
• Geographical factors come into play, with larger tech centres like San Francisco, New York, and London generally paying more than smaller towns.
• Compared to startups or smaller businesses, larger companies- especially those in well-established industries provide greater compensation scales for managers and product owners.
• Higher pay is typically offered for both roles in specific industries, such as banking, technology, and healthcare.

Also, Check :Product Owner Roles and Responsibilities

Difference Between Product Owner Vs Product Manager Salary

Product managers are paid less than product owners when comparing compensation across different industries. In the US, the average pay for a product owner is $1,34,379, while the average compensation for a product manager is $99,410, according to Glassdoor. Pay in different businesses might differ based on an individual's product, experience, and personal qualities. The following points will let you know the reason for the salary differences.

1. Product managers have a more comprehensive range of responsibilities, including directing the development team and product roadmap and doing competitive analysis, user experience, and market research. Yet, the main priorities of product owners are managing the development team's delivery process and setting the product backlog in order of importance.
2. Pay differences between Product Managers and Product Owners can be more pronounced in some industries, such as technology and finance, where both professions are generally more lucrative.
3. More excellent compensation is typically offered for both jobs by larger organizations with established product lines than by smaller startups or corporations.
4. More excellent compensation is usually available for both roles in major tech hubs like San Francisco and New York than in smaller towns.

Product owners receive competitive salaries. The average yearly base compensation for POs in the US is just under $101,000, according to data from Glassdoor. POs are paid various amounts like PMs, from $38K to $389K. 

Also, check: Product Owner vs Project Manager

Experience

The experience in both roles plays a crucial role in the salary, and the main factor is the certification an individual product owner or manager holds that directly impacts the salary; let's see how: 

Product Owner- Experience, for example, a senior product owner's salary will be way higher than a junior product owner's salary, and skills, a certified product owner's salary will be different from one who has none and compensations including stock options and other benefits also are a contributing factor. When communicating with stakeholders, you can establish alignment and trust by clearly articulating the product vision and plan to engineers, executives, and customers. You can minimize surprises and set reasonable expectations with stakeholders because you have a realistic understanding of the timeframes and difficulties associated with product development. 

Product Manager-  One of the most important things determining how much money you can make as a product manager is experience. Product managers acquire essential knowledge and abilities in user experience, development processes, product strategy, market research, and team leadership. As a result, they become more valuable to companies and more appealing to prospects, which raises wage offers. Product managers with experience have a proven track record of managing and deploying products successfully. This demonstrates their capacity to provide outcomes for which businesses are willing to pay a high price.

Requirements

Product Owner- Your ability to work with a scrum team, aiming to maximize the value of product delivery, is demonstrated by your product owner certification. With more experience, they can increase their earning potential and are usually paid more. For instance, the pay of a Certified Scrum Product Owner® (CSPO) with one to four years of experience will be 9% more than that of an uncertified owner.

Product Manager- A certified product manager knows every product lifecycle stage. You will create and oversee products from inception to launch as a qualified product manager. Certifications demonstrate a product manager's dedication to ongoing education and proficiency in fundamental competencies. They may receive better compensation offers due to differentiating themselves from other applicants and gaining employers' respect, making it essential to have a certification. 

Salary Trends & Factors Influencing Salary 

Product Owner- Product Owners in their early careers: with 1-4 years of experience, the average total compensation is $77,656. Product owners in the middle of their careers make, on average, $92,619 in full pay after five to nine years of work. With 10–19 years of experience, an experienced product owner typically earns $105 021 in real income.

Factors influencing the salary of product owner:

1. Certification Level: CSPO, ACSPO, CSP-PO, and so forth
2. The Organization for which you are employed
3. The nation in which a person is employed
4. Years of Product Owner Work Experience
5. Appointing a Product Owner for the Organization

Product Manager- With less than two years of experience, entry-level jobs typically pay $74,000, those with six to ten years get $117,000, and those with fifteen or more years get $154,000. Note that these figures relate to the average base wage and do not account for bonuses or other types of compensation.

Factors influencing the product manager's salary:

1. Regarding product manager pay, location is essential.
2. Product manager wages are also significantly influenced by supply and demand factors.
3. Certifications help you improve your abilities and demonstrate your legitimacy in the workplace.

Salary Trends: Product Owner vs Product Manager Salary

The salaries for PMs and POs are similar. A more comprehensive approach to your work will increase compensation as you advance. Explore salary trends to help you make more informed selections. 

Top Paying Industries: Product Owner and Product Manager 

Regardless of the state of the economy, the positions of product manager and owner are acknowledged and remain crucial. Nonetheless, several important factors in some industries, such as experience, credentials, and geographic location, significantly impact income more than others.

Product Managers and Product Owners are more valuable to organizations in the IT sector, banking services, defence and aerospace, consulting, tech & internet, telecommunications, and transportation & logistics than the vital goods and services industries. Therefore, choosing these industries is always appropriate if you want to pursue a career in any of these fields.

To expedite the increment process inside the organization, consider enlisting the help of a Product Manager and Product Owner certification course. 

The Bottom Line

Product managers and owners are important assets, but deciding who gets the last say must consider priorities, company objectives, and customer demands. Determining the roles of product managers is crucial, but you'll always need to adjust.  Enterprises spanning diverse sectors and regions are embracing agile development methodologies or merging them with conventional product management techniques like the sophisticated, anticipatory, and mixed approaches presently encompassed by PMI's Product Management Professional accreditation. 

With the SAFe® Agile Product Management (SAFe® APM) Certification Training from Simpliaxis, you may increase your earning potential! Boost your abilities as a manager or product owner. Learn in-depth information and valuable tips to succeed in today's cutthroat industry. Advance your profession by enrolling right now for a more promising future!