Engineering managers play a vital role in technology companies and engineering organizations. They oversee teams of engineers, coordinate projects, manage budgets and timelines, and ensure that engineering projects are completed successfully. With the technology industry experiencing rapid growth in recent years, engineering managers are in high demand in many companies.
What does an engineering manager do?
An engineering manager has a wide range of responsibilities that can include:
- Managing a team of engineers – this includes hiring, training, evaluating performance, resolving conflicts, and ensuring engineers have the resources they need.
- Coordinating engineering projects – developing project plans, assigning tasks, managing schedules and budgets, tracking progress, and overseeing quality control.
- Communicating with stakeholders – interfacing with clients, executives, sales teams, and other departments to provide project updates and ensure stakeholder needs are met.
- Technical leadership – providing guidance on technical approaches, standards, and best practices for engineering work.
- Resource planning – determining equipment, software, materials, and human resource needs for engineering projects.
- Process improvement – analyzing processes to improve efficiency, quality, and productivity in the engineering organization.
In summary, engineering managers oversee the organization’s engineering activities to ensure projects are executed effectively and aligned with business objectives. They manage both the technical and business aspects of engineering.
Why are engineering managers in high demand?
There are several key factors driving high demand for engineering managers:
Growth of technology companies
Technology companies require talented engineering managers to lead their software, hardware, and systems engineering teams. Major technology hubs like Silicon Valley have experienced massive growth, leading to fierce competition for hiring top engineering managers.
Shortage of qualified candidates
Engineering management requires both strong technical skills and business/management acumen. Candidates who possess this combination are rare and highly sought after. Companies are willing to provide premium compensation packages to hire qualified engineering managers.
Increasing project complexity
As technology solutions become more complex, engineering projects involve more moving pieces. Experienced engineering managers are needed to navigate these multifaceted projects successfully. Their expertise makes them invaluable for handling large-scale initiatives.
Demand for innovation
In competitive markets like consumer electronics, companies rely on engineering innovation to differentiate their products. Skilled engineering managers are required to lead these innovation efforts and convert ideas into tangible products. They are key enablers of bringing new technologies to market quickly.
Corporate emphasis on technology
Across many industries, technology is becoming a prime competitive advantage and driver of business strategy. Companies are focused on expanding their technical capabilities, leading to greater investment in engineering departments and more demand for management talent.
Job growth projections
According to the U.S. Bureau of Labor Statistics (BLS), employment for engineering managers is projected to grow 7% from 2020 to 2030, nearly as fast as the average rate across all occupations. This will result in an additional 25,400 engineering management jobs by 2030.
Occupation | 2020 Median Pay | 2020 Employment | 2030 Projected Employment | Increase 2020-2030 |
---|---|---|---|---|
Engineering Managers | $149,730 | 364,600 | 390,000 | 25,400 (7%) |
Key drivers of this job growth include:
– Continued strong demand in high-tech industries like software and electronics manufacturing.
– Infrastructure projects that require coordination of civil, electrical, and mechanical engineering work.
– Growth of “smart” technology applied to products like appliances, transportation, utilities, and buildings.
– Advances in engineering disciplines like nanotechnology, robotics, and renewable energy.
– Need for improvements in manufacturing efficiency, productivity, safety, and sustainability.
Highest paying industries
According to BLS data, the industries with the highest employment levels and salaries for engineering managers are:
Industry | Median Annual Salary | Employees |
---|---|---|
Computer systems design and related services | $160,560 | 22,400 |
Aerospace product and parts manufacturing | $158,800 | 16,900 |
Scientific research and development services | $153,450 | 14,900 |
Electronics and appliance stores | $152,270 | 15,000 |
Semiconductor and electronic component manufacturing | $151,460 | 11,500 |
These industries reflect strong demand for engineering expertise in computer technology, aerospace/defense, research, and electronics manufacturing. The high salaries demonstrate the competitive market for hiring top engineering management talent in these sectors.
Top paying states
The top paying states for engineering managers largely correlate with states that have a strong technology industry presence:
State | Median Annual Salary |
---|---|
California | $174,620 |
Massachusetts | $168,350 |
Virginia | $161,550 |
Washington | $160,810 |
Colorado | $157,790 |
Top states like California and Massachusetts are home to major tech hubs that offer abundant job opportunities. Strong demand enables engineering managers to negotiate high salaries. States with emerging tech centers like Colorado are also becoming more competitive.
Job satisfaction
In a survey conducted by Careerexplorer.com, engineering managers reported relatively high job satisfaction, with 73% indicating they are satisfied overall in their career. The most commonly cited positives of the job are:
- Ability to solve complex problems
- Leading a team through technical projects
- Opportunity to innovate
- Competitive salary
- Flexibility and work-life balance
However, engineering management can present challenges such as stressful deadlines, office politics, dealing with conflict, and having to fire employees. Managers must have excellent leadership, communication, negotiation and people skills to thrive. Those who enjoy managing teams and technical projects tend to find the most fulfillment in this role.
Job outlook
The job outlook for engineering managers over the next decade is strong. Technology will continue evolving rapidly, leading to new market disruptions that require engineering expertise to capitalize on. Rising focus on big data, artificial intelligence, IoT, renewable energy, automation, and advanced materials bodes well for engineering management demand.
However, there are some potential headwinds to monitor:
- Offshoring of more engineering jobs to overseas talent pools.
- A push to simplify engineering processes and reduce needs for complex coordination.
- Automation of some management tasks using AI tools.
- Cost-cutting pressures during economic downturns.
Engineering managers who upgrade their skills and adapt to changes in technology, business environments and management best practices will be well-positioned to thrive. But those who fail to evolve may find their job prospects declining.
Education and training requirements
To become an engineering manager requires:
- Bachelor’s degree – Most engineering manager positions require at least a bachelor’s degree in engineering or computer science. Common majors include electrical, mechanical, industrial, aerospace, software and computer engineering among others.
- Master’s degree – Many companies prefer candidates who have obtained a master’s degree in engineering management, business administration or project management. This provides useful leadership, project and business training.
- Licensure – Possessing a Professional Engineer (PE) license demonstrates high-level engineering knowledge and can improve prospects.
- Technical experience – 5-10 years experience working in a specific engineering discipline provides important hands-on understanding of the technologies being managed.
- Management training – Coursework, certifications or programs in engineering management best practices helps develop the needed leadership abilities.
Ongoing professional development is also critical for engineering managers to hone their skills as technologies and business practices evolve. Combining technical depth with great leadership and project management skills is the foundation for success.
Conclusion
Engineering management demand is growing robustly amid technology’s increasing strategic importance in business. However, the limited supply of managers who combine technical expertise, leadership ability and business acumen makes this a very competitive field. Candidates who invest in the right education, experience and skills will enjoy favorable job prospects and excellent compensation. But those who struggle with managing teams, learning new technologies quickly or adapting their management style may find themselves falling behind emerging expectations for the role. Engineering managers who embrace lifelong learning and skill development will maintain the most job mobility and career advancement opportunities.