The Cost of Owning a Project Management Office

The Cost of Owning a Project Management Office

Establishing a Project Management Office (PMO) can dramatically improve project execution, alignment with strategic goals, and organizational maturity. However, these benefits come with a cost—primarily in the form of skilled personnel. Understanding the full cost of maintaining a PMO is crucial for budgeting, ROI analysis, and executive buy-in.

This article analyzes the average salaries of PMO roles in the United States and provides estimates of monthly and annual costs—both with and without taxes and benefits.

PMO Staffing and Salary Estimates

A mid-sized, fully functional PMO typically includes the following roles:

RoleHeadcountAverage Salary (USD/year)
PMO Director1$160,000
Portfolio Manager1$145,000
Program Managers2$135,000
Project Managers3$110,000
Project Controllers / Analysts2$95,000
Methodology & Standards Specialist1$100,000
PMO Coordinator / Administrator1$75,000

Annual and Monthly Cost Breakdown

Without including taxes and benefits, the base annual salary cost for this PMO structure is:

  • $1,270,000 per year
  • $105,833 per month

When accounting for employer-side taxes, benefits, and overheads (estimated at 30%), the total cost of ownershipbecomes:

  • $1,651,000 per year
  • $137,583 per month

Note: Taxes and benefits typically include healthcare, retirement contributions, payroll taxes, insurance, and training costs.

Total Cost Overview

CategoryAnnual Cost (USD)Monthly Cost (USD)
Base Salaries$1,270,000$105,833
With Taxes & Benefits$1,651,000$137,583

Strategic Perspective

While a PMO may appear expensive, the costs should be weighed against:

  • Improved project delivery timelines
  • Reduced failure and rework
  • Enhanced resource utilization
  • Alignment with strategic initiatives
  • Scalable project governance

Organizations with mature PMOs often report significant gains in business agility, customer satisfaction, and bottom-line results.

Final Thoughts

A PMO is a strategic investment—not just a cost center. Understanding the financial commitment involved allows leaders to plan more effectively and ensure that the value of project management excellence is both visible and measurable.