The Profile of a Project Manager based on PSMJ’s 2026 Compensation Benchmark Results
The role of the Project Manager in an AE firm has evolved from primarily managing timelines and budgets into a strategic asset driving profitability, client satisfaction, and firm growth. As such, more AE firms are placing an increased emphasis on finding and development true project management leaders.
PSMJ’s 2026 Compensation Benchmark Results are built from the AE industry’s most comprehensive and robust study on the entire compensation picture. More than just base salary and bonuses, this research digs into direct labor multipliers, billing rates, time spent on business development, and much more.
Compensation: The Foundation for Success
Getting salary right is where it all starts. Overpay and profits will suffer. Underpay and you won’t attract or retain top talent. Of course, the goal isn’t just to be a median firm with median salaries, but rather to tightly tie your firm’s compensation strategy with your overharching growth strategy. For example, a firm that is in a strong growth mode may actually pay above-market salaries but below-market bonuses to support re-investment in continued growth.
According to PSMJ’s 2026 Compensation Benchmark Results, the median base salary for a Project Manager is $115,968.
Matching the Expense with the Revenue
One of the most critical compensation mistakes that a firm leader can make is to adjust salaries without adjusting billing rates. When salaries go up and billing rates stay the same, profits go down.
According to PSMJ’s 2026 Compensation Benchmark Results, the median hourly billing rate for a Project Manager is $190.
Another way to look at the conversion of a salary expense to revenue for the firm is through the Direct Labor Multiplier. Put simply, this reflects the revenue that the firm is able to capture for the Project Manager’s time (as a multiple of the Project Manager’s salary).
According to PSMJ’s 2026 Compensation Benchmark Results, the median Direct Labor Multiplier for a Project Manager is 3.51.
In other words, for every dollar of a Project Manager’s salary, the firm generates $3.51 in direct labor revenue. This metric is a reflection of efficiency as well as fee discipline.
To put a finer point on workload and efficiency, we look to the time charged to projects for Project Managers.
According to PSMJ’s 2026 Compensation Benchmark Results, the median amount of time charged to projects for a Project Manager is 75%.
The Backlog-Boosting Power of a Project Manager
A firm’s Project Managers are often in regular contact with clients and, in many cases, one of the only individuals in the firm with whom the client will interact. As such, Project Managers are uniquely positioned to build trust, manage scope creep and change compensation, and identify future opportunities with a client. To be sure, much of the Project Manager’s time associated with this won’t show up on a timesheet explicitly as business development. However, some of the most successful AE firms set goals and expectations related to business development throughout the firm. A Project Manager may not bear significant responsibility for winning new work, but they certainly play a role in it.
According to PSMJ’s 2026 Compensation Benchmark Results, the median amount of time spent on business development for a Project Manager is 5%.
This works out to roughly 100 hours per year, or 2–3 hours per week. For many firms, this is where future Principals are made and where the seeds for future projects are planted.
So, now what?
For starters, it is absolutely critical to remember that, in any benchmarking exercise, the median is not the goal. Rather, the goal is optimization and aligning compensation with your firm’s strategic goals and culture to remain competitive for talent. There is hardly ever a single “right” answer on compensation.
Specifically as it relates to Project Managers, many of today’s AE firms are putting more pressure than ever before on their Project Managers…to manage more projects, to manage compressed project schedules, and to manage projects in a dynamic operating environment. Now more than ever, a comprehensive benchmarking exercise provides clarity on how your firm compares to the industry.
About PSMJ
For over 50 years, PSMJ has been the leading publishing, executive education, and advisory group devoted completely to improving the business performance of architecture, engineering, and construction organizations worldwide.
Stop Guessing. Start Benchmarking.
PSMJ’s 2026 Compensation Benchmark Results give you the clarity you need to make confident pay decisions:
✓ 100+ AE positions – from CEO to Architectural Designer
✓ 30+ compensation factors – salary, bonus, billing rate, direct labor multiple, utilization, and more
✓ Vetted, unbiased data – employer-reported and rigorously validated
✓ 18 peer groups – compare apples-to-apples by firm size, type, and client base
✓ Local market adjustments – built-in BLS wage data for hundreds of metro areas
✓ Easy Excel format – create custom charts and reports in minutes
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