Common mistakes of PMP® Application

Common mistakes of PMP® Application

 

PMI takes great care to uphold the quality of its Certifications by establishing high standards in working and educational requirements of certification applicants.

The PMP® Exam Application is often considered as a mini project in itself as Aspirants would need to take much time and efforts to get the application form completed and submitted, not to mention the possibility of having to deal with the dreaded Audit. Before even beginning to fill in the application form, Aspirants would need to understand common mistakes of failing the PMP® application with a view to accelerating and smoothing the application process (by noting these, You will also be well prepared for the Audit too).

Before going into details of the common mistakes, every Aspirants should note the no. 1 mistake in submitting the application is not to become PMI Member before hitting the form submit button — since the saving in exam fee for PMI membership is more than the annual membership fee of PMI.

 

Common Mistakes in Documenting Working Experience

PMI requires Aspirants to have accumulated a certain amount of hours of working experience before applying for the exam.

On the Application Form, you will be asked to fill in the number of hours for each project you have taken part in according to the project management process groups (initiating, planning, directing, monitoring & controlling and closing the project as defined in the PMBOK® Guide) according to the following template:

  • Title of project
  • Duration and nature of project
  • Supervisor details
  • No. of hours spent in each process group
  • A brief description of the project including objectives, key deliverables, project outcome, as well as your personal role (in less than 500 characters)

The total amount of working experience hours should be more than the minimal amount specified for different levels of formal education. Also each Aspirants should at least have some experience in each of the five process groups.

Common mistakes when filling in the Application Form include:

  • Include every project you have taken part in from Day 1 of your working life
    — include barely sufficient number of projects to fulfil the minimum amount of experience hour is highly advised as this will save you much efforts in verifying your working experience; also the experience submitting should be within the past 7 years.
  • Include many small projects
    — if you have worked on large and small projects over the past few years, try to select the large project first to reduce the complexity of your Application (and save you much efforts in PMI Audit). If you are the unfortunate those who work on only small project, you should try to document all your projects as organized as possible.
  • Not making efforts to collect truthful information of your projects
    — every Aspirants to try hard to gather all the relevant information to their working experience for each project (in particular the project schedule and plan, etc.). Before filling the Application From, you should have collected all the relevant information so that you can calculate the number of hours for each project management process group as accurately as possible. You are also highly advised to keep these information in a folder to prepare for the Audit. Remember to take the time to document your working experience as clear as possible and ask for consent from your supervisors on the documented hours.
  • Trying hard to follow some insiders’ secrets to fill in the Application Form to avoid the Audit
    — the PMI Audit is random in nature (proof: I got audit request for both my PMP® and PMI-ACP® Certification Application), there is nothing one can do to avoid or reduce the likelihood of being selected for the PMI audit. But the chance of getting PMI audit requests is often considered low, maybe around 10% or less (though the exact amount is not disclosed by PMI).
  • Include working experience during which you are not working on project management (e.g. operation)
    — since PMP® is about project management, the working experience submitted should include only those hours you are managing or directing project work only. Though it is not necessary to carry the functional title of “project managers”, you will pay special attention to report only the portion of your working experience that is directly related to project management.
  • Fill in the supervisors details before contacting them
    — if you are not selected for an audit, this should not be an issue; otherwise, you should contact your supervisor first to agree on the number of project management hours to be reported in the PMP® Application. This will also ensure that you can reach your supervisor (past or present) in case  you would need to ask them to sign the experience verification form for the Audit. Make sure you can contact the person you named as the supervisors for your projects by emailing or phoning them. PMI doesn’t require your immediately supervisor as the only person to be named on the application, in case you cannot find them, you can try to find others who have intimate knowledge of your role in the project (can be the CEO, COO, manager, supervisor, colleagues, etc.). If all efforts fail, it is better for you NOT include the project in your application or you would risk failing the PMI Audit.
  • Not making full use of the 500 characters for the project description
    — 500 characters is not too much especially when you are required to fill in the project including objectives, key deliverables, project outcome, as well as your personal role in the project you mention in your Application. PMI would just rely on this piece of information to understand whether your experience is considered suitable for working experience hours. Try to make full use of the characters allowed; otherwise PMI will ask you to re-submit (maybe through email) a more detailed project description during the Application Completeness Review process (which is before the Audit).
  • Crash the project schedule too much too often
    — PMI advocates work-life balance by recognizing only 40 hours per week of working. Therefore, for project spanning 12 weeks, you should only document at most 480 hours and no more. If you have read the PMBOK® Guide, you should understand that crashing is just a work-a-round and should not be a “planned” activity.
  • Fill in the Application before reading the PMBOK® Guide
    — PMI has laid out its concept of project and project management in the PMBOK® Guide, and your Application Form (in particular the project description part and the number of hours for each process groups) is judged against the definition from the PMBOK® Guide. If you get to know the PMOBK Guide well, there will be less discrepancies in the understanding of your project management terms vs PMI’s. You are also welcome to show off your understanding of project management in PMI’s point of view by making use of project management terms found in the PMBOK® Guide.

Common Mistakes in Counting 35 Contact Hours of Project Management Education

The requirement for the 35 Contact Hours for the PMP® Certification is quite simple and clear:

  • The 35 Contact Hours of project management education should be any education on project management provided by any formal education provider taken anytime before the PMP® exam, e.g.
    • part of University curriculum (only count those hours on project management education)
    • bootcamps
    • online PMP® courses — all online courses should include a formal end of course assessment to judge whether the student has actually studied the course
  • There is no need to have the curriculum based on the PMBOK® Guide nor PMP® Certification.
  • Not limited to courses provided by a PMI Registered Education Provider (R.E.P.) — though PMI has pre-approved courses offered by PMI R.E.P. to fulfil the contact hour requirement.

Common mistakes when counting 35 Contact Hours include:

  • Not Finishing the 35 Contact Hours before submitting Application
    — PMI requires the 35 Contact Hours to be gained before Application Form is submitted (i.e. you should have gotten the Course certificate before applying for PMP®)
  • Reading the PMBOK® Guide for 35 Hours by self-study
    — The 35 Contact Hours should be gained through a formal course offered by a formal education provider. Self-study is not considered a possible way to earn the required education.
  • Taking online project management courses without assessments
    — It is one of the requirements for online courses that a formal end of course assessment should be included before giving out the course certificates to the students. All courses provided by PMI R.E.P. would include assessments as PMI has communicated well with them; however other education providers would just miss this. When in doubt, always choose courses that are provided by PMI R.E.P. (you have the added benefits of being well prepared for the exam).
  • Including courses that are not directly related to project management
    — If you are not taking courses by PMI R.E.P., you will also need to provide the course outline if you are selected for an audit. PMI will try to judge whether the whole course or just some portions of it is/are about project management. You must try to make sure the course is all about project management in PMI’s eyes.

Common Mistakes in Responding to PMP® Audit

According to PMI’s Customer Care there are three ways that you can fail an audit: No Fault, Non-Compliance and Fraud. Let’s look at them in detail. First we’ll see what PMI writes for each, then we’ll give you an interpretation and our recommendations.

No Fault on the PMP® Applicant

Cannot verify education or experience through no fault of their own – No suspension period and cannot reapply until candidate can provide the experience hours and document them.

In other words, the PMP® Applicant cannot provide the proof of their project management education (35 contact hours) or experience upon request

Non-Compliance to PMI Audit Requests

Candidate chooses not to attempt audit – One year suspension period

If you are audited and you simply have too much going on in your life to participate in the audit, then you can choose not to give any audit responses. Similar to pleading “no contest,” the candidate is subject to a one year suspension period before he/she can apply for the PMP® Exam again.

Intentional Fraud Information Provided in PMP® Application

Providing False Information – Permanently suspended from sitting for PMI exams

PMI will permanently ban Aspirants who provide false information (including making up non-qualified working experiences or faking education certificates) with a view to deceive PMI into believing they meet the requirements of taking the PMP® Exam. Since honesty is an integral quality of every project manager according to the PMI Code of Ethics and Professional Conduct, anyone found providing misinformation will not be allowed another chance to apply for any PMI Certifications. This is the worst kind of punishment for failing the PMI audit.

After understanding these three ways of failing the PMI Audit, Aspirants should take note of the common mistakes for PMI Audit failure as follow:

  • Filling in the project management / education experience in the Application Form without any proofs on hand
    — since the PMI Audit is time-framed (you need to respond and complete the audit in 90 days), you should be well prepared for the audit in advance by gathering all the required certificates (university/secondary degree and the 35 contact hours) and contacting all your named contacts. This will save you much time in completing the audit.
  • Not responding Audit request due to incomplete documentations
    — even if you cannot submit all the required documentation, verification and certificates requested by PMI, you should still notify PMI about the reasons (e.g. the education provider cannot issue the certificate with 90 days, etc.). There will be not penalty period in this case and once you can get it, you can proceed the application.
  • Not responding Audit request as the named supervisors cannot be reached
    — though it is highly desirable to have the ones named in the Application Form to sign the experience verification forms for you, PMI does not mandate this! In fact, you can ask anyone with intimate knowledge of your project roles to sign the form for you! Just ask any other managers or colleagues to help you out on this and you should be able to pass the audit.

Conclusion

It is hoped that by avoiding these common mistakes in PMP® Application submission, Aspirants can proceed through the Application process as smooth as silk. After passing the application completeness review, paying the exam Fee (and possibly passing the audit), Aspirants will be able to schedule their PMP® Exam time slot and begin the hardcore study for their certification success!

The PMP Certification Process Overview

The PMP Certification Process Overview

 

The PMP® Certification Process and the requirements for becoming a PMP® are quite complicated if you haven’t taken any PMI exams (like CAPM® or PMI-ACP®) before. Reading the PMP® Handbook alone will not help you much as you will still have some questions unanswered.

A) Fulfil PMP® credential requirements:

  1. Must have enough project management experience as stipulated by PMI
    • For secondary degree holders (e.g. high school diploma, associate’s degree): need to have at least5 years of project management experience and a minimum of 7,500 hours leading and directing projects
    • For four-year degree holders (e.g. bachelor’s degree): need to have at least 3 years of project management experience and a minimum of 4,500 hours leading and directing projects
  2. Have the required 35 Hours of Project Management Education
    • Any education on project management offered by a formal education provider taken at any time before the PMP® exam will satisfy this requirement, e.g. a course in your degree curriculum about project management with a length of more than 35 hours;
    • The course on project management is NOT required to be based on PMBOK® Guide. BUT taking a course based on PMBOK® Guide will help you also in your PMP® preparation (try to find a PMP® exam prep course provided by a PMI Registered Education Provider (R.E.P.)that is accredited by PMI, more on that later).

What is project management experience as recognized by PMI?

  • NO need to carry the job title ‘project manager‘ but must be assigned the responsibility of managing and taking care of projects.
  • The experience is about project management (as defined in the PMBOK® Guide) and not just carrying out project works managed by others.
  • Must have experience in all the lifecycle phases of projects (i.e. 5 process groups of the project management lifecycle, including initiating, planning, directing, monitoring & controlling and closing the project). PMI does not require you to have experience with the 5 process groups from every project. That means you can just involve in initiating in Project A, closing in Project B and all 3 others in Project C.
  • You may consider the Certified Associate in Project Management Certification (CAPM®) offered by the Project Management Institute (PMI) if you have not accumulated the required project management experience. The CAPM® is also based on the PMBOK® Guide (more on factual memorization) but there are no experience requirements.

B) Apply for the PMP® certification online:

  1. The most convenient way to apply for the PMP® exam is through the online system at http://certification.pmi.org.
  2. Sign up for a user account first. After which you can log in and begin filling in the PMP® application form. The information entered on the PMP® application form will be stored on PMI’s web server for up to 90 days. You will get an email reminder from PMI a few days before that period will expire and all the information be deleted.
  3. Read the article on common mistakes of PMP® Application and how you can avoid them.
  4. [Optional but highly recommended] Become a member of PMI. Though it is not required to become a paying member of PMI to take the PMP® exam, being a member allow you to enjoy discounted PMP® and other certification fees, a free downloadable copy of PMBOK® Guide and many online PMP® exam reference books. The PMI annual membership fee is US$129 plus US$10 of first-time registration fee. The money you will save by becoming a member will be much more than the cost of the membership fee for the first year.
  5. After you have completed the online application form, submit it and wait for the approval to sit for the PMP® exam from PMI (in the form of an email).
  6. You can now pay the PMP® certification fee online (US$405 for members and US$555 for non-members). Remember to pay $139 for the membership fee first if you haven’t before paying the PMP® certification fee, you will get an instant saving of US$16.
  7. [Selected randomly by PMI] If you are so fortunate to be chosen for an audit by PMI, you will get a notification email immediately after you have paid the exam fee. Act as fast as possible to send them all the required documents (e.g. academic certificates, 35 hours of project management education certificate, proof of working experience, etc.). Otherwise, you will be given an email authorizing you to schedule your PMP® exam at Prometric website.

C) Schedule, attempt and pass the PMP® exam:

  1. Though you are given a 1-year validity period during which you can schedule the PMP® exam at any time, it is advisable to schedule the PMP® Exam at Prometric website as soon as possible. This arrangement has two benefits:
    • Exam places are limited, the faster to schedule, the more likely you can schedule the exam at a date and time you prefer;
    • Having scheduled the exam will give you a tangible target for you to prepare consistently for the PMP® exam.
  2. Prepare and study well for the PMP® exam by making use of the PMBOK® Guide guide, a PMP® study guide as well as numerous PMP® practice exams.
  3. On the date of the exam, arrive at the exam centre early. Relax and enjoy the exam.
  4. You will be notified of the exam result immediately after the exam. The center staff will give you a printed proof of your exam achievement. If it is a pass, congratulations, you are immediately a PMP®! If, unfortunately, you fail the first try, make plans to retake the exam. You can have up to 2 more chances to take the PMP® exam within the 1-year validity period (though you must pay the re-exam fee separately).

D) Obtain PMP® PDU for re-certification

  1. The PMP® certificate will be mailed to you within 6-8 weeks.
  2. The first benefit of becoming a PMP® is that you can request a PMP® lapel pin free of charge (details will be emailed to you several days after you have passed).
  3. If you pass the PMP® exam, you are immediately a PMP® and your 3-year PDU re-certification cycle begins. Collect at least 60 PDUs per 3-year cycle to allow you to renew your PMP® credential.
  4. You can make use of PMI’s online system to report PDUs to PMI. When you have accumulated enough PDUs, PMI will send you a renewal notice. The renewal fee is US$60 for members and US$150 for non-members.

What’s Next?

If you fulfil the PMP® requirements and are eligible for the PMP® exam, you should next try to understand how much time, money and efforts are needed to get your PMP® title. This is the second most pressing question any PMP® aspirants would ask. 

PMP®️ Domain Information & Overview

PMP®️ Domain Information & Overview

 

Introduction

Welcome back to this series on the Project Management Professional (PMP)®️ certification. In this article, we will cover everything you need to know about the domains/performance areas covered in the PMP examination.

First off, let’s start with an explanation of what domains are.

What Domains Are Covered on the PMP Exam?

Project management is defined as the application of knowledge, skills, tools and techniques to project activities/tasks to meet project requirements. The project activities/tasks a project manager has to perform are divided into five performance areas or domains. These are the five domains that are covered in the PMP exam to ensure you have all the competencies needed to successfully manage any project.

The domains are:

Initiating

This domain covers defining a new project or phase and initial scope, getting authorization, getting initial financial commitment and identifying stakeholders.

Planning

This domain covers defining the scope, objectives and a clear course of action that will be taken to achieve the objectives. All the planning information is stored in the project management plan, which often needs to be revisited if a change happens.

Executing

This domain covers executing the work defined in the project management plan, coordinating people and resources.

Monitoring and Controlling

This domain covers tracking and reviewing the progress and performance of the project and initiating changes if necessary.

Closing

This domain covers finalizing all activities and formally close the project. It may involve getting client acceptance and documenting lessons learned or changes to assets.

How Often Are the Domains Updated?

In order to ensure that the Project Management Professional certification evolves with the profession and reflects competencies needed by present-day project managers in their day-to-day activities, the Project Management Institute (PMI®️) conducts role delineation studies (job analysis) every five to seven years (PMP Certification Handbook, 2017). The role delineation study is performed by an independent party and is validated by volunteer project managers all over the world.

The outcome of the role delineation study may indicate changes to the terminology, tasks, knowledge and skills needed by project managers. This will result in an update to the domains, which domains are most important and how many questions are allocated within each domain in the PMP examination. The changes to the domain are outlined in the PMP exam content outline, which was last published in June 2015. A change in the PMP exam content outline results in a change in the PMP exams.

It is important to note that even though the PMP exam is based on the PMP exam content outline, sometimes the PMP exam also changes even when the exam content outline does not change: for example, when a new edition of the Project Management Book of Knowledge (PMBOK) is released. The PMP exam was last updated on March 26, 2018

How Much is Each Domain Worth on the Exam?

The number of questions from each domain in the PMP exam depends on the outcome of the last role delineation study and which areas are considered most important.

The exam has 200 multiple-choice questions. 175 of them are scorable while the remaining 25, called pre-test questions, are not. Pre-test questions allow PMI to monitor the question performance before adding them to the official exam questions. The 175 scorable questions are broken down into the following percentages:

Initiation: 13%

Planning: 24%

Executing: 31%

Monitoring and Controlling: 25%

Closing: 7%

What Topics Are Covered in Each Domain?

PMP Domains are groups of tasks that the project manager needs to do in order to manage projects and the knowledge or skills needed to do these tasks efficiently. Some of these knowledge areas and skills cross multiple domains and tasks. In this section, we will outline which tasks, knowledge areas and skills are needed in each domain.

Domain 1: Initiating

The first domain on the PMP is called Initiating. The aim of this domain is to test your ability to perform the tasks needed to initiate a project or a phase of a project. Before a project can start, it needs to be determined that the idea for the project and its main objectives are feasible. The project manager then needs to perform several tasks to ensure the project can be completed effectively and get approval to start the project. There are eight tasks within the initiating domain. They are:

  • Performing project assessment to determine feasibility
  • Identifying key deliverables based on business requirements
  • Performing stakeholder analysis
  • Identifying high-level risks, assumptions and constraints
  • Developing the project charter
  • Getting approval of project charter from sponsor
  • Conducting benefit analysis with relevant stakeholders
  • Informing stakeholder of approved project charter

Specific knowledge and skills needed in this area include: analytical skills, benefit analysis techniques, elements of a project charter, estimation tools and techniques and strategic management.

Domain 2: Planning

The second domain on the PMP is called Planning. The aim of this domain is to test your ability to perform tasks needed to outline a clear course of action for achieving the objectives of the project. For example: creating a schedule, determining how finances will be managed, determining how change will be managed and so forth. All the planning information is stored in the project management plan. There are 13 tasks within the planning domain:

  • Reviewing and assessing detailed project requirements, constraints and assumptions with stakeholders
  • Developing a scope management plan
  • Developing a cost management plan
  • Developing the project schedule
  • Developing the human resource management plan
  • Developing the communications management plan
  • Developing the procurement management plan
  • Developing the quality management plan
  • Developing the change management plan
  • Developing the risk management plan
  • Presenting the project management plan
  • Conducting the kick-off meeting and communicating relevant information
  • Developing the stakeholder management plan

Specific knowledge and skills needed include: change management planning, cost management planning, inclusion of project budgeting tools and techniques, communications planning, contract types and selection criteria, estimation tools and techniques, human resource planning, lean and efficiency principles, procurement planning, quality management planning, requirements gathering techniques (e.g., planning sessions, brainstorming and focus groups), regulatory and environmental impacts assessment planning, risk management planning, scope deconstruction (e.g., WBS, scope backlog) tools and techniques, scope management planning, stakeholder management planning and time management planning, including scheduling tools and techniques and workflow diagramming techniques.

Domain 3: Executing

The third domain on the PMP is called Executing. The aim of this domain is to test your ability to perform the tasks needed to carry out the course of action set out in the project management plan. The project manager needs to coordinate resources, ensure they understand and implement the plan, manage how project information is communicated and manage the relationship with stakeholders. There are seven tasks within the executing domain. They are:

  • Acquiring and managing project resources by following the human resource and procurement plan
  • Managing task execution based on the project management plan
  • Implementing the quality management plan
  • Implementing approved changes and corrective actions by following the change management plan
  • Implementing approved actions by following the risk action plan
  • Managing the flow of information by following the communication plan
  • Manage stakeholder relationship by following the stakeholder management plan

Specific knowledge and skills needed include: continuous improvement processes, contract management techniques, elements of a statement of work, interdependencies among project elements, project budgeting tools and techniques, quality standard tools and vendor management techniques.

Domain 4: Monitoring and Controlling

The fourth domain on the PMP is called Monitoring and Controlling. The aim of this domain is to test your ability to perform the tasks needed to track and review the progress and performance of the project. The project manager needs to do everything necessary to make sure the project is on track and that deliverables meet the expected standard. There are seven tasks within the monitoring and control domain. They are:

  • Measuring project performance
  • Managing changes to project following change management plan
  • Verifying that project deliverables conform to the standards in the quality management plan
  • Monitoring and assessing risks
  • Reviewing issue logs
  • Capturing and analyzing lessons learned
  • Monitoring procurement activities according to the procurement plan

Specific knowledge and skills needed include: performance measurement and tracking techniques (e.g., EV, CPM, PERT, trend analysis), process analysis techniques (e.g., LEAN, Kanban, Six Sigma), project control limits (e.g., thresholds, tolerance), project finance principles, project monitoring tools and techniques, project quality best practices and standards (e.g., ISO, BS, CMMI, IEEE), quality measurement tools (e.g., statistical sampling, control charts, flowcharting, inspection, assessment), risk identification and analysis techniques, risk response techniques and quality validation and verification techniques.

Domain 5: Closing

The fifth and last domain on the PMP is aptly called Closing. The aim of this domain is to test your ability to perform tasks needed to finalize all activities and formally close the project. The project manager needs to ensure that the client accepts the deliverables and document lessons learnt for future projects. There are seven tasks within the closing domain. They are:

  • Obtain final approval of project deliverables from relevant stakeholders
  • Transfer ownership of project deliverables to assigned stakeholders
  • Obtain financial, legal and administrative closure
  • Prepare and share final project report according to the communications management plan
  • Collate lessons learned and conduct a project review
  • Archive project documents and materials
  • Obtain feedback from relevant stakeholders

Specific knowledge and skills needed include: archiving practices and statutes, compliance (statute/organization), contract closure requirements, close-out procedures, feedback techniques, performance measurement techniques (KPI and key success factors), project review techniques and transition planning techniques.

Further knowledge areas and skills

There are additional knowledge and skills that cut across all 5 domains. They include: active listening; applicable laws and regulations; benefits realization; brainstorming techniques; business acumen; change management techniques; coaching, mentoring, training and motivational techniques; communication channels, tools, techniques and methods; configuration management; conflict resolution; customer satisfaction metrics; data-gathering techniques; decision-making; delegation techniques; diversity and cultural sensitivity; emotional intelligence; expert judgment technique; facilitation; generational sensitivity and diversity; information management tools, techniques and methods; interpersonal skills; knowledge management; leadership tools, techniques and skills; lessons learned; management techniques; meeting management techniques; negotiating and influencing techniques and skills; organizational and operational awareness; peer-review processes; presentation tools and techniques; prioritization/time management; problem-solving tools and techniques; project finance principles; quality assurance and control techniques; relationship management; risk assessment techniques; situational awareness; stakeholder management techniques; team-building techniques; and virtual/remote team management.

Conclusion

I hope this has given you a better understanding of the PMP domains and what they cover. Future article topics will be focusing on the each of the PMP domains and going into more details about their respective tasks, knowledge and skills.

Sources

Project Management Professional (PMP)®️ Handbook, PMI

Project Management Professional (PMP)®️ Examination Content Outline, PMI

 

To download Free Project Management Templates you can visit www.managementproject.net

Ways to Increase Your Salary as a Project Management Professional

Ways to Increase Your Salary as a Project Management Professional

 

Top performing companies successfully complete 89 percent of their projects, meaning effective project managers not only impact the success of their company’s top initiatives—they enable better project performance overall.

Ninety-seven percent of organizations strongly agree that project management is critical to the success of their company, according to a survey by Pricewaterhouse Coopers. From seeing complex projects from inception to completion, project managers have the capacity to reduce company costs, increase organizational efficiency, and help generate higher revenue.

When it comes to project management, salaries can be rewarding, but also depend on several factors. Let’s take a deeper dive into how certifications, earning an advanced degree, specialization, and other factors can add more money to your paycheck.

Certification and Graduate Degrees

Those with a PMP certification earn 20 percent more than those without one. The median salary for project managers holding this certification is $111,000, versus a median salary for non-PMP holders at $91,000 across all industries.

The PMP certification demonstrates your proficiency in becoming a certified project manager. Earning one not only helps you enhance your salary, it demonstrates to employers that you have the skills, knowledge, and organization to successfully manage projects and teams. PMP certification is often preferred or recognized for promotions and career advancement.

The certification is earned through the Project Management Institute, a globally-recognized association that promotes collaboration, education, and research within project management. The organization also maintains international certification standards, credentialing, policies, and procedures.

In addition to certification, 34 percent of project management job postings prefer or require a graduate degree, according to a report from Burning Glass Labor Insight. A master’s degree in project management can equip you with the concrete skills you need to lead complex projects.

Specialization

Along with earning your PMP certification, you can further increase your salary depending on your specialization within project management. For example, you may choose to become a program manager or a portfolio manager.

Here’s how the three break down:

  • Project managers plan, direct, and close projects by determining responsibilities, creating an inclusive plan, and managing the budget. They typically make an average salary of $108,200.
  • Program managers execute several related projects in a collective way—also known as a program—to improve a company’s outcomes, and they command a median salary of $120,000.
  • Portfolio managers analyze an organization’s projects to help companies identify the best tasks, distribute the right resources, and improve project performance. They earn a median salary of $128,000.

Project Team Size

Team size also affects a project manager’s income. Depending on the size of the team, a project manager could earn an additional $20,000 per year in salary. According to the Project Management Institute, ranges include:

  • One to four people: $100,000
  • Five to nine people: $107,070
  • 10 to 14 people: $111,000
  • 15 to 19 people: $115,823
  • 20 or more people: $120,000

Project managers also make 40 percent more if they are managing ventures that surpass $10 million.

Industry

Your chosen industry can have a significant impact on your earnings as a project manager. According to the Project Management Institute, project managers in the following industries report the highest median income in the nation:

  • Pharmaceuticals: $125,500
  • Agriculture, Mining, and Natural Resources: $120,640
  • Consulting: $120,000
  • Aerospace: $115,000
  • Engineering: $112,000
  • Information Technology: $110,000
  • Oil and Gas: $110,425
  • Government: $110,000

Project management salaries within the science, technology, engineering, and math (STEM) fields are rewarding due to the rapid growth and high salaries within the field. In fact, 93 percent of STEM jobs offer wages well above the national average, and the national median salary for all STEM positions is almost double the average wage for non-STEM roles.

Within the government, projects are more complex than other fields and often require specialized knowledge of particular software, making project management salaries higher than average.

Location

Where you choose to work can also affect your salary. This includes locations both within the U.S. and worldwide.

You can make up to $16,000 more depending on your location within the U.S.

Nationwide, project manager salaries are:

  • Miami: $83,615
  • Austin: $87,742
  • Chicago: $89,065
  • Boston: $91,440
  • Charlotte: $93,320
  • Houston: $93,927
  • Seattle: $94,841
  • New York City: $95,855
  • San Francisco: $99,748
  • Silicon Valley: $110,197

Keep in mind that cost of living varies with each city. For example, the cost of living in Seattle is 24 percent more expensive than the average city, while the cost of living in Austin is three percent lower.

In addition to the U.S., project managers earn the most in countries such as Australia, Switzerland, the Netherlands, Germany, and Canada. According to ProjectManager.com, they command a median salary of:

  • Canada: $95,140
  • Australia: $134,658
  • Switzerland: $133,605
  • The Netherlands: $103,274
  • Germany: $101,983

Where you choose to work can have a huge impact on earnings, in addition to certification and advanced degrees, specialization, project team size, and industry. Project managers should then consider a multitude of factors when looking at salary.

 

Source: www.northeastern.edu

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