Product manager vs product owner: Who to hire for your business?

In the dynamic world of technology, job titles can sometimes be as complex as the code that’s being written.

Particularly confusing is the distinction between two crucial roles: the product manager and the product owner. These roles are often seen as interchangeable, leaving many businesses scratching their heads when it’s time to make a hire.

If you’re among those wondering about the nuances between a product manager and a product owner, you’ve come to the right place.

This comprehensive guide is designed to eliminate any confusion around these roles, offering a deep dive into their unique responsibilities, the criteria for hiring each, and the specific experience and qualifications you should look for.

What do they do?

Product manager: The visionary

The product manager focuses on long-term vision and strategy.

They are responsible for defining the product roadmap, conducting market research, and understanding external stakeholders like customers, suppliers, and partners.

They typically look at the bigger picture, tracking market trends and understanding how the product fits into the overall business strategy.

Example key metrics for product managers and product owners | Right People Group

Product owner: The tactical expert

On the other hand, the product owner responsibilities are more operational and closer to the development team.

They handle the product backlog, write actionable user stories, and ensure the scrum team has what it needs to complete tasks.

In essence, a product owner deals with the day-to-day development process, ensuring that meaningful value is delivered at the end of each sprint.

Hiring criteria

When it comes to hiring either a product manager or a product owner, setting clear criteria is essential for finding the right person for the job.

The hiring criteria should align with the distinct responsibilities and skill sets each role demands. Let’s take a closer look at the essential skills and qualifications for each role.

Hiring criteria: Product managers vs product owners

Criteria for hiring a product manager

Strategic thinking

Hiring a product manager with strong strategic thinking skills is crucial.

This individual needs to be adept at crafting a compelling product vision and product strategy.

They should have the ability to understand market trends, recognize customer needs, and translate those insights into actionable plans.

The product manager focuses on the long-term potential of the product, making strategic thinking an invaluable trait.

Communication skills

Product managers often find themselves in situations where they must articulate complex ideas in a clear and effective manner. Whether they are interacting with external stakeholders, presenting the product roadmap, or engaging with other departments, excellent communication skills are a must.

Business acumen

A product manager should have a solid grasp of business fundamentals.

This includes an understanding of business analysis techniques, competitive analysis methods, and market research strategies.

These skills are vital for driving the product towards meeting business objectives and delivering meaningful value to customers.

Criteria for hiring a product owner

Strong understanding of agile

Since the product owner is typically embedded in an agile team, a deep understanding of the agile framework is essential.

They should be comfortable working in sprints, handling the product backlog, and writing actionable user stories.

Their role is to guide the development process in a way that is aligned with the agile principles.

Technical proficiency

Product owners should be technically proficient enough to communicate effectively with development teams.

They don’t need to be coding experts, but they should understand the development process, know how to create user stories, and be familiar with project management tools.

This technical know-how ensures they can bridge the gap between the business and technical sides of the product.

Team player

A product owner must excel at collaboration.

They work closely with development teams, scrum masters, and sometimes even with the product manager.

Their role requires them to be an effective liaison between these different groups, ensuring that the development process runs smoothly and that the scrum team has everything it needs to meet its goals.

Experience and qualifications

When it comes to hiring for the roles of product manager or product owner, understanding the kind of experience and qualifications that best suit each position can make all the difference.

Here, we’ll expand on the key experience criteria and qualifications you should consider for each role.

Experience for a product manager: the big picture strategist

1. Previous product management roles: Generally, experience in product management roles is highly beneficial. This background gives the candidate a solid foundation in product strategy, market trends, and interacting with external stakeholders.
2. Industry experience: Knowing the ins and outs of the specific industry your company operates in can offer the product manager valuable context. This familiarity can help in crafting a product vision that’s both innovative and grounded in reality.
3. Success metrics: A proven track record in delivering products that meet customer needs and market demands is crucial. This usually means the candidate has experience in defining and tracking success metrics that truly matter, like customer engagement, revenue growth, or market share.

Experience for a product owner: the agile executor

1. Scrum certification: While not always a strict requirement, having a certified product owner is often seen as a big plus. This certification demonstrates a deep understanding of the agile framework and how to manage a product backlog effectively.
2. Project management: Experience in project management can be invaluable for a product owner. This skill set complements their role well, helping them manage the development process more efficiently, from sprint planning to delivering business value.
3. Technical background: A product owner who understands both the business and technical sides can communicate more effectively with development teams. This dual perspective helps in translating business objectives into actionable user stories and tasks.

Salary differences: What to expect when hiring

When it comes to salary, there can be some notable differences between a product manager and a product owner. These differences often reflect the level of experience required, the responsibilities of the role, and the industry or region where the job is located.

Product manager salary

In the United States, according to Payscale, the average salary for a product manager as of 2021 is approximately $104,000 per year. This figure can vary widely depending on factors like location, experience, and company size. In tech hubs like Silicon Valley, salaries can easily reach upwards of $150,000 or more.

In Europe, salaries can vary significantly from country to country. For instance, a product manager in Germany might earn an average of €73,000 annually, according to Glassdoor.

Source: Payscale, Glassdoor

Product owner salary

For product owners, the average salary in the United States is around $95,000 as per Payscale’s 2021 data. Like the product manager, salaries can also differ significantly based on location, experience, and industry.

In Europe, salaries also fluctuate. For example, in Germany, the average salary for a product owner is approximately €77,000, according to Glassdoor.

Source: Payscale, Glassdoor

Product owner vs product manager: key differences

1. Focus: the product manager focuses on the “what” and “why” while the product owner is concerned with the “how.”
2. Reporting: product managers often report to higher-level executives; product owners report mainly to the product manager or a project manager.
3. Stakeholders: product managers interact more with external stakeholders, whereas product owners are more internally focused, especially with development teams.
4. Toolsets: product owners work closely with the product backlog and scrum teams. Product managers rely more on market research, user research, and competitive analysis.
5. Business value: a product manager decides on features based on business value and ROI. The product owner is concerned with executing these decisions effectively.
6. Lifecycle: the product manager is involved in the entire product lifecycle, while the product owner role primarily revolves around the product development process.

Considering consultants? Here’s why you might want to.

So you’ve read all about hiring a product manager and a product owner. Ever thought about bringing in a consultant instead? It’s worth considering for a few simple reasons.

Short-term commitment, big impact

Consultants can hop in for just the length of a project and make a real difference. No long-term strings attached.

Expertise when you need it

These folks have a ton of experience across different projects and industries. They offer fresh eyes and valuable insights.

Budget-friendly

You pay for what you need, without worrying about long-term salaries and benefits.

Quick to start

Consultants are used to jumping into new projects. Less time training, more time doing.

Ready to give it a go? We have a wide network of top-notch IT and business consultants. Contact us to find out more. Trust us, it’s a smart move.

Final thoughts: Understanding the roles for better hiring

While both the product manager and product owner serve as linchpins in product development and strategy, their functions are not identical. In fact, each role complements the other but operates from a different vantage point.

Both a product owner and a product manager are crucial in bridging gaps—whether those are between customer needs and business goals or between a development team and a business strategy.

Knowing these differences can save time, help you meet customer needs, and bring meaningful value to your organization. Choose wisely based on what stage your product is in and what kind of expertise you require.