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Metric for New Headcount
I am trying to identify a metric as to the typical revenue or # products that is used to justify a new headcount. I have heard $40M to $50M per product manager. Are there any sources or benchmarking I can use to justify new product managers to support our business.
Our annual survey indicates that the average product manager has responsibility for three products. Of course, some have only one; some have dozens. I don’t have research that shows a correlation between product managers and revenue. Anecdotally, it seems that companies start realizing the need for product management around 40 employees but before the $40MM revenue point; it’s probably more like $15MM. In the end, look at the activities on the Pragmatic Marketing Framework. How much time each week should a product manager spend in each box? That will tell you how many product managers you need.
Answered by Steve Johnson
