Project management is an essential role in most organizations. Project managers are responsible for planning, organizing, and overseeing projects to ensure they are completed on time, within budget, and meeting all requirements. With many companies taking on more projects and initiatives to remain competitive, there is often a high demand for skilled project managers. In this article, we will explore the current job outlook for project managers and the factors driving the demand.
The Project Management Job Market
Recent data indicates there is a growing need for project managers across industries. According to the Project Management Institute’s (PMI) 2021 Talent Gap report, employers will need to fill nearly 25 million new project-oriented roles by 2030. This represents a growth of 33 percent over the current number of project management jobs worldwide.
The United States Bureau of Labor Statistics (BLS) also forecasts strong growth in demand for project managers in the coming decade. Employment of project management professionals in the U.S. is projected to grow by 11 percent through 2030, which is much faster than the average growth across all occupations.
Additionally, PMI’s 2021 Job Growth and Talent Gap Report showed that project management roles are expected to grow across all major global markets over the next decade. The markets with the highest projected growth rates are China (204 percent), India (158 percent), and the United States (33 percent).
This data demonstrates there will be a substantial need to develop and hire more qualified project managers to deliver on the increasing number and complexity of projects. Many employers are already finding project talent acquisition challenging.
Factors Driving Demand
Several key factors are contributing to the high demand for project managers:
Adoption of project management best practices
Organizations are increasingly embracing structured project management techniques to improve success rates. The Project Management Institute’s Pulse of the Profession report found 71 percent of organizations now leverage project management best practices. This focus requires skilled project managers to properly implement these methodologies.
More projects using Agile approaches
Agile frameworks like Scrum and Kanban have been gaining popularity for managing projects, especially in software development. The Project Management Institute found 52 percent of organizations report using Agile approaches for their projects sometimes, often or always. Agile projects require project managers well-versed in these iterative approaches.
Digital transformation initiatives
Many companies are pursuing digital transformation projects to improve efficiencies, better engage customers, and keep pace with disruptive competition. According to research by IDG, 55 percent of organizations have digital transformation initiatives planned or underway. The complexity of these technology integration projects generates substantial demand for experienced project leaders.
Growth in remote work
The pandemic accelerated the trend toward more virtual and hybrid work. Managing projects with remote, distributed teams creates new challenges for project managers related to communication, collaboration, and technology. The move to remote work has heightened the need for project managers who can facilitate teamwork effectively using digital tools.
More specialization of project manager roles
Industries are seeking project managers with specialized expertise aligned to the domain of the projects. For example, IT projects require project managers proficient in technical concepts and systems. Construction needs project managers knowledgeable about the building trades and processes. This specialization requires dedicated training and development for project management professionals.
Increasing complexity of projects
The scope, budgets, and intricacy of projects across sectors are increasing. Larger projects with more interdependencies demand skilled project managers to spearhead them. The Project Management Institute found that 42 percent of organizations report managing more complex projects now compared to just five years ago.
Growing number of projects
Organizations are initiating more projects to support their strategic goals and operational needs. PMI’s report revealed that 75 percent of organizations expect to have more projects over the next five years. With a rising volume of projects in motion, there is greater need to staff them with qualified project leaders.
Hard and Soft Skills in Demand
To fulfill the growing project management needs, employers are looking for candidates with a mix of hard and soft skills.
Here are some of the top hard skills in demand based on recent job postings for project managers:
| Hard Skill | Description |
|---|---|
| Project planning | Developing detailed project plans, schedules, budgets, and charts to track progress |
| Budget management | Monitoring project finances and controlling costs |
| Requirements management | Defining project requirements and scope |
| Scheduling | Creating timelines, Gantt charts, and schedules |
| Risk management | Identifying and mitigating project risks |
| Resource management | Allocating resources and managing teams/vendors |
Project managers also need a diverse range of soft skills and traits to succeed, such as:
– Leadership – motivate and direct teams toward goals
– Communication – clearly convey plans and ideas in writing and verbally
– Organization – coordinate many moving parts and stakeholders
– Problem-solving – troubleshoot issues and overcome obstacles
– Collaboration – work cross-functionally to achieve shared objectives
– Agility – adapt and respond to changing priorities and dynamics
– Strategic thinking – align projects to business objectives and goals
Organizations hiring project managers are looking forcandidates who can demonstrate both the technical know-how and the soft skills to deliver projects on target.
Sourcing and Developing Project Management Talent
To meet the growing demand, companies are expanding initiatives to source and develop project manager talent through multiple strategies:
Targeted recruitment and hiring
HR departments are refining their recruitment practices to attract scarce project management talent. Recruiting is focused on experienced project managers, as well as less experienced candidates with potential through development programs.
Internal mobility and promotions
Organizations are cultivating project managers from within by identifying high potential employees to transition into project roles. Existing staff with business experience can be upskilled through project management training.
Project management training
Companies are investing in developing their current talent into qualified project managers at scale through formal training. This includes internal training academies, online courses, and external workshops or certificate programs.
contractor project managers
Contracting external project managers on a temporary or project basis provides flexible talent to lead initiatives and fills immediate gaps. Specialized contract project manager firms are meeting this demand.
Apprenticeships and early career programs
Organizations are creating development schemes for new graduates or early career hires to gain project management experience. Apprentices get on-the-job training and mentorship in project roles.
A combination of these talent practices enables organizations to build a pipeline of project professionals with varying levels of experience and backgrounds. This is essential to execute on growing project portfolios.
Conclusion
In summary, market data confirms high growth and substantial demand for project managers across industries. Key drivers include digital transformation, Agile adoption, remote work, growing project complexity, and increasing project volume. To meet needs, employers want technical, business, and soft skills in their project hires. Organizations are expanding recruitment, development programs, training, and contractor partnerships to build talent pipelines. All signs point to healthy ongoing demand for skilled project management professionals into the foreseeable future.
