Software development teams are the main asset of any IT company, as they are the driving force towards business success. However, even the most genius programmers need a guiding star to achieve their desired goals — an engineering manager (EM). These professionals usually take on responsibility for the development process, effective team leadership, and business growth opportunities.
If you are an IT executive looking for a competent EM, continue reading this article and learn more about the expertise of these specialists, factors that determine their salary, and destinations with the most affordable rates.
Engineering Manager Salary Market Trends
The Engineering Manager is an engine of software development. Even though these professionals are rarely involved in the actual coding, they are accountable for the technical design, architecture, and operation of the product, ensuring high quality and regular maintenance of its systems and programs. Good results come from meticulous planning, efficient research & development team coordination, and clear project execution. Check out the complete list of an EM’s daily responsibilities below.
Considering the current number of IT companies in the tech industry of the United States, which is around 600,000, the demand for engineering managers will only increase. According to the popular job search websites, there are at present about 200,000 open vacancies for these specialists in the US, with LinkedIn having 140,000, Indeed – 30,000, and Glassdoor – 20,000 as of November 2022.
Primary Factors that Influence the Salary of an Engineering Manager
Desired Skills & Knowledge
There is no universal set of skills for an EM, since each IT company comes up with their own job requirements. Yet from my professional experience, I can tell that the Engineering Manager skill stack can be divided into 3 groups: technical, team leading, and project management.
Education
The Engineering Manager salary is largely affected by the level of higher education. The difference between the rewards of professionals with Bachelor’s and Master’s degrees can reach 13%, while the Ph.D. ensures an even higher rise in the average income of an Engineering Manager.
Experience Level
Naturally, the salary varies depending on the level of experience, and engineering managers are not an exception. When choosing the leadership path, these professionals can further get to Senior Engineering Manager and then become Director of Engineering once they gain enough experience.
Company Size
The price tag for the Engineering Manager can also vary, depending on the local market. In the USA, tech remunerations are hugely affected by the Big Five that tend to offer real success salaries. For instance, Google is ready to pay their engineering managers $230K, Apple — $200K, and Microsoft —$195K per year. But how much does an Engineering Manager make on average in other countries?
Engineering Manager Salary: Key Takeaways
My team and I have collected some data on Engineering Manager salary (by area) to help you identify low-cost destinations for hiring such specialists. All currencies were converted to US dollars at a relevant exchange rate for November 2022.
| Gross annual income, USD | North America | South America |
| Engineering Manager | $137,000 | $45,000 |
| Senior Engineering Manager | $158,000 | $55,000 |
| Director of Engineering | $174,000 | $66,000 |
| Gross annual income, USD | Western & Nordic Europe | Eastern Europe |
| Engineering Manager | $90,000 | $60,000 |
| Senior Engineering Manager | $107,000 | $80,000 |
| Director of Engineering | $120,000 | $90,000 |
| Gross annual income, USD | Eastern & Southern Asia |
Middle East | Africa |
| Engineering Manager | $71,000 | $65,000 | $52,000 |
| Senior Engineering Manager | $87,000 | $110,000 | $70,000 |
| Director of Engineering | $102,000 | $128,000 | $83,000 |
Average Engineering Manager Salary in North America
USA
| Gross annual income, USD | United States | |||
| California | Texas | Florida | New York | |
| Engineering Manager | $165,000 | $150,000 | $146,000 | $168,000 |
| Senior Engineering Manager | $180,000 | $167,000 | $165,000 | $175,000 |
| Director of Engineering | $210,000 | $185,000 | $180,000 | $205,000 |
Canada
The average income of an Engineering Manager in Canada is slightly lower than in the USA: $115K-$157K.
Mexico
Although not included in our general calculations, Mexican engineering managers receive 2,5 times lower annual compensations than their Canadian colleagues — $45K-$64K.
Average Salary of the Engineering Manager in South America
| Gross annual income, USD | North America | South America | ||
| USA | Canada | Brazil | Argentina | |
| Engineering Manager | $158,000 | $115,000 | $50,000 | $40,000 |
| Senior Engineering Manager | $172,000 | $143,000 | $63,000 | $47,000 |
| Director of Engineering | $190,000 | $157,000 | $72,000 | $60,000 |
Brazil
The IT industry in Brazil is not too far ahead of the Mexican one, offering the average Engineering Manager salary of $50K-$72K for an EM.
Argentina
The median Senior Engineering Manager salary in Argentina constitutes $47,000.
Engineering Manager Income in Western & Nordic Europe
| Gross annual income, USD | United Kingdom | |||
| England | Scotland | Wales | Northern Ireland | |
| Engineering Manager | $85,000 | $83,000 | $75,000 | $72,000 |
| Senior Engineering Manager | $98,000 | $95,000 | $88,000 | $90,000 |
| Director of Engineering | $132,000 | $130,000 | $123,000 | $120,000 |
Germany
German engineering managers are some of the most well-paid in the region, earning on average $97K-$133K per annum.
France
The annual Engineering Manager income in France spans from $85K to $110K.
Italy
In Italy, the Engineering Manager salary ranges from $74K to $103K.
Spain
The median reward of the Senior Engineering Manager in Spain is rather modest: $90,000.
| Gross annual income, USD | Germany | France | Italy | Spain |
| Engineering Manager | $97,000 | $85,000 | $74,000 | $77,000 |
| Senior Engineering Manager | $120,000 | $97,000 | $88,000 | $90,000 |
| Director of Engineering | $133,000 | $110,000 | $103,000 | $100,000 |
Norway
Norway is recorded as a location with the most generous average salary for an Engineering Manager: $103K-$140K.
Netherlands
The price tag for the Director of Engineering in the Netherlands constitutes around $130,000.
Sweden
Senior engineering managers in Sweden are paid about $112,000 annually.
Austria
Austria is not lagging too far behind the Netherlands, offering $93K-$120K for the Engineering Manager.
Belgium
The Engineering Manager annual salary in Belgium is not principally different from the one in Austria: $88K-$117K.
| Gross annual income, USD | Norway | Netherlands | Sweden | Austria | Belgium |
| Engineering Manager | $103,000 | $98,000 | $92,000 | $93,000 | $88,000 |
| Senior Engineering Manager | $125,000 | $117,000 | $112,000 | $115,000 | $107,000 |
| Director of Engineering | $140,000 | $130,000 | $125,000 | $120,000 | $117,000 |
Salary of an Engineering Manager in Eastern Europe
| Gross annual income, USD | Ukraine | Poland | Romania | Hungary | Czech Republic |
| Engineering Manager | $60,000 | $65,000 | $62,000 | $55,000 | $57,000 |
| Senior Engineering Manager | $80,000 | $86,000 | $83,000 | $77,000 | $76,000 |
| Director of Engineering | $88,000 | $95,000 | $90,000 | $85,000 | $88,000 |
Ukraine
The average salary for an Engineering Manager in Ukraine ranges from $60K to $88K.
Poland
Polish engineering managers receive some of the highest annual compensations in the region: $65K-$95K.
Romania
The annual salary of the Engineering Manager in Romania spans from $62K to $90K.
Hungary
Hungary offers quite modest remunerations for an EM in Eastern Europe: $55K-$85K.
Czech Republic
The Director of Engineering in Czechia earns on average $88,000.
Engineering Manager Salary in Eastern & South Asia
| Gross annual income, USD | China | Japan | South Korea | Singapore | India |
| Engineering Manager | $70,000 | $88,000 | $65,000 | $100,000 | $30,000 |
| Senior Engineering Manager | $86,000 | $105,000 | $80,000 | $122,000 | $43,000 |
| Director of Engineering | $108,000 | $114,000 | $97,000 | $140,000 | $50,000 |
China
Senior engineering managers in China earn on average $86,000 annually.
Japan
Japanese EMs receive the second highest compensation in the region: $88K-$114K.
South Korea
The Engineering Manager income in South Korea is like in China: $65K-$97K.
Singapore
Engineering managers in Singapore are paid the highest annual remuneration among Asian countries: $100K-$140K.
India
Unlike its neighbors, India offers the lowest salary for the Director of Engineering — $50,000.
Engineering Manager Income in Israel
| Gross annual income, USD | Israel | |||
| Jerusalem | Tel Aviv | Haifa | Karmiel | |
| Engineering Manager | $90,000 | $102,000 | $78,000 | $80,000 |
| Senior Engineering Manager | $118,000 | $125,000 | $97,000 | $100,000 |
| Director of Engineering | $132,000 | $140,000 | $120,000 | $125,000 |
Engineering Manager Salary in Australia
| Gross annual income, USD | Australia | |||
| Sydney | Melbourne | Perth | Adelaide | |
| Engineering Manager | $123,000 | $120,000 | $115,000 | $112,000 |
| Senior Engineering Manager | $147,000 | $142,000 | $132,000 | $130,000 |
| Director of Engineering | $168,000 | $157,000 | $150,000 | $145,000 |
Alcor Knows How to Find the Best Engineering Manager for Your Tech Team!
Headhunting a seasoned engineering manager with proper competences and cultural similarities can be quite challenging, especially if doing it in the offshoring destination. That’s why, in order to hire software developers in Eastern Europe, one US-based product company, assigned this arduous task to Alcor.
Firstly, our IT recruiters created an ideal candidate profile and attractive employer value proposition. Secondly, our researchers conducted applicant sourcing and CV screening. After that, our recruitment team carried out job interviews to provide our client only with the most appropriate candidates. As a result, an offer was made to the best-matched candidate who has already started to make an invaluable contribution to the client’s application elaboration in their software research and development center in Eastern Europe.
Would you also like to get full-cycle IT recruitment just like our clients Sift, People.ai, Dotmatics, and Ledger? Then choose Alcor BPO as your trusted partner! We have over 10 years of experience in IT recruitment services, a team of 40 tech headhunters, and a solid pool of 600,000 Polish and Romanian programmers. You will be delighted with our fast and effective IT hiring, as it takes us only 3-6 weeks to close 1 position, while 98,6% of our candidates successfully pass the probation period.
FAQ
Which factors influence the average Engineering Manager income?
Among the factors influencing the Engineering Manager income are experience level, education, demand, and location. Read this article to learn more about these and other aspects that shape the EM’s annual salary.
Which countries offer the highest Engineering Manager salary?
Engineering managers in the USA, Australia, Canada, Israel, Norway, and Singapore receive the highest annual remunerations.
Where are the most affordable Engineering Manager compensations?
The lowest salary for engineering managers can be found in Hungary, Czechia, Mexico, Argentina, and India, where it varies from $30K to $88K.
How can an IT company hire a proficient Engineering Manager?
The best way to headhunt a highly qualified Engineering Manager in your offshore development team is by partnering with an experienced IT recruitment company. Your ideal partner should have a solid team of IT recruiters, a large pool of candidates, outlined guarantees, and more.