Director of Engineering Salary and Job Outlook

Effective oversight of an engineering unit is critical, and the importance of that oversight is growing as organizations face shortages of engineers. More than 70% of the 505 engineering and research and development firms surveyed by Bain & Co. in 2022 reported they were dealing with shortages in engineering talent. Those shortages can pose threats to an organization’s ability to accomplish its objectives.

Responsible for leading the engineering arm of an organization, a director of engineering oversees all engineering activities. From monitoring engineering teams’ progress to crafting long-term strategic plans, the duties that directors of engineering perform have a tremendous impact on an organization’s success.
Anyone who wants to climb the engineering career ladder should explore what directors of engineering do. It’s also helpful to become familiar with the director of engineering salary and education requirements for the job.
 

What Is a Director of Engineering?

Directors of engineering serve in a leadership position at the helm of an organization’s engineering unit. They rely on their experience and expertise in areas such as engineering, business, management, and strategic planning to help ensure their organization can achieve its mission. 

Directors of engineering also plan for the future and help their organization prepare for advances in engineering.

Industries in Which Directors of Engineering Work

Directors of engineering work in a variety of industries, including the following:

• Software development
• Manufacturing
• Construction
• Infrastructure development
• Aerospace
• Electrical products and services
• Research and development

Director of Engineering Work Environments

Directors of engineering are employed across a wide range of industries, from software development and manufacturing to aerospace and infrastructure development. While they primarily operate in office settings, their responsibilities often take them to on-site locations such as construction sites and factories, where they oversee engineering activities and ensure that projects align with organizational goals.
 

Job Responsibilities: What a Director of Engineering Does

On any given day, engineering directors perform tasks such as the following:

• Oversee engineering managers and engineering teams’ progress
• Monitor engineering budgets
• Collaborate with professionals performing other organizational functions (for example, human resources or finance)
• Update executive management on the status of engineering teams’ progress
• Review compliance with regulatory requirements
• Provide performance feedback to engineering teams

In terms of longer-range job responsibilities, leaders of engineering units also perform the following tasks:

• Conduct strategic planning for engineering units
• Work to establish the culture of engineering units
• Form partnerships with external entities that support engineering units
• Work on initiatives to grow engineering units
• Identify innovations and best practices for engineering units to implement
   

Steps to Become a Director of Engineering

Becoming a director of engineering involves satisfying certain requirements in terms of education and experience. The steps on the career path include the following: 

1. Earn a Bachelor’s Degree

The first step is to earn a bachelor’s degree. For example, earning a degree in civil engineering, electrical engineering, mechanical engineering, or software engineering provides a solid base of expertise that will be valuable when individuals ascend to the director of engineering role.

Earning a degree in business administration with an emphasis in engineering management or information technology also can provide a good foundation for eventually becoming a director of engineering. 

2. Begin Gaining Professional Experience

Individuals typically join the engineering profession through an entry-level engineering position that offers opportunities to develop key technical skills and gain real-world experience. Entry-level engineers also learn about the overall structure of engineering projects and get to observe the leadership skills of engineering supervisors and managers. 

3. Continue Progressing Along the Engineering Career Path

After a few years in entry-level positions, individuals begin to advance on the engineering career path. They move into senior engineering roles that include supervisory and management duties. As individuals advance in their careers, they also earn the higher salaries associated with senior-level engineers.

After working for five to 10 years in positions of increasing responsibility, individuals can move into a role as an engineering manager and take on even more supervisory and management responsibilities. Individuals usually need to work as an engineering manager for at least five years before they become a director of engineering.

4. Earn a Certification

As they progress in their careers, a great way for engineers to demonstrate their commitment to the profession is to earn a certification. Examples of certifications that can be helpful include:

• Certified professional in engineering management (CPEM) credential from the American Society for Engineering Management
• Project management professional (PMP) credential from the Project Management Institute
• Certified technology manager (CTM) credential from the Association of Technology, Management, and Applied Engineering

5. Earn a Graduate Degree

One of the chief reasons to complete graduate education is to pursue career advancement, and earning a master’s degree can help people move into a director of engineering position.

Earning a master’s degree in engineering management, for example, can advance an individual’s expertise in engineering, management, and key business concepts that are critical when working as an engineering director. Coursework for this degree also provides valuable expertise in using data analysis to improve engineering outcomes.

6. Move Into a Director of Engineering Position

After satisfying the education and experience requirements, an individual typically has the credentials necessary to move into the position of director of engineering. At this point in their career, individuals typically have formed a network of colleagues that can be helpful in pursuing a director of engineering position. 
 

Director of Engineering Salary and Job Outlook

Salaries for directors of engineering are attractive. According to Payscale, as of July 2024, the annual median director of engineering salary was about $155,000. Those in the highest 10% of the salary range earned up to about $204,000; those in the lowest 10% earned about $103,000 and up. 

The U.S. Bureau of Labor Statistics (BLS) projects 3% job growth for top executives such as directors of engineering through 2032. That aligns with the BLS’s projection of 3% job growth across all occupations. Looking more specifically at the field of engineering, the ongoing shortage of engineering talent could translate into opportunities for engineering directors who can innovate and identify new approaches to mitigating those shortages.
 

Directors of Engineering Use Their Skills and Expertise to Help Engineering Units Excel

Ascending the career ladder to work as a director of engineering is a great long-term goal for anyone who is willing to acquire the necessary education and experience. People in this position have the opportunity to perform challenging work, and the salaries of directors of engineering reflect their critical role in the success of an engineering unit.

Individuals who have an interest in engineering career advancement can explore the online Master of Science in Engineering Management degree program at Tseng College at California State University, Northridge. With a curriculum designed to enhance your leadership skills and technical expertise in areas such as data analytics, this program can provide the foundation you need to excel as a director of engineering. Start your journey toward engineering leadership today and position yourself for success in a dynamic and rewarding career.