Bach Seat

Organizations may soon find themselves short of project managers. The shortage will put them at a great disadvantage as the economy continues to recover according to David Weldon at FierceCIO. The article cites the recent ESI International ESI 2013 Project Manager Salary and Development Survey.

The project management training company surveyed 1,800 project managers in 12 different industries in the U.S. and found, “Budget constraints, an aging base of professionals and a looming talent war all contribute to a talent crisis that should be addressed from the highest levels of the organization,” Mark Bashrum, VP at ESI told CIO.com. The ESI VP continued, “The growing needs of businesses demand a more strategic view of the staffing, development, and promotion of their project managers since project execution impacts an organization’s bottom line and its ability to satisfy its customers.”

CIO.com says the study, identified three primary factors for the project manager shortage:

1. As the economy rebounds, many organizations are growing. In and of itself, growth is a good thing for businesses, but growth means more markets, more products, and more systems and that means more projects for which there aren’t enough PMs.
2. Many project managers are reaching retirement age and leaving the workforce. According to the Project Management Institute (PMI), 60 percent of their members are over the age of 40. “This is a real problem because these are the people who understand the business,” says Mr. Bashrum. “Over the years they have not only acquired project management skills, but also an understanding of their industry and their organization; knowledge which is not easily replaced.“
3. Many organizations have stopped actively developing their existing project manager talent due to reductions in training budgets. “In many cases, this means they have very little in the way of ‘bench strength’ and do not have a qualified group of mid-level project managers ready to move up to the senior ranks as project demand increases,” he says.

The problem is especially severe for senior-level project managers, either because companies haven’t hired enough in the job market, or haven’t developed enough among internal staff.

“Add to that the larger issues of shortsighted hiring practices, a lack of competency planning, and a reduced focus on training and development, and many company’s business objectives are at risk,” the article notes.

Mr. Bashrum says the survey found it can take up to 10 months to bring an otherwise experienced project manager up to speed in a new organization. He also told CIO.com the specifics are different for each organization, but in general, Bashrum says business acumen and communication skills are at the top of the list. He adds that negotiation skills, critical thinking, and problem-solving skills are also extremely important.

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The study seems to say that demand has steadily been increasing while supply has been flat which should mean higher salaries for all PMs, but even more so for specific industries and for senior PMs. 

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.