Analytics Salary Report
by Alex White
Senior Partner, Talent & Research 7th Jan 2017
Alex White is the founding partner at Avellio. He is an industry experienced former analyst, and has led over 120 retained search assignments for data science leaders, with mandates entrusted by leading global investment banks, major retailers and analytics consultancies.
With the constant change and evolution in the dynamic of job roles within the analytics market and more predicative analysts up-skilling in the pursuit of even great challenges, we will examine the potential for analysts to secure a significant salary increase when switching between the dynamic of roles, job titles, and different companies.
The benefits to the many are significant, most analysts with proven ability and a solid reputation can command anywhere between a 5 and 20% salary increase. That considered, with the increased competition posed by many new professionals entering the market, what can you reasonably be lead to expect?
We analysed our candidate placement data for analytics professionals over the previous 12 months (January 2016 to January 2017) and measured the percentage increase in salary, comparing previous compensation with the level afforded by the new job. Our sample size was exactly 26 analytics professionals at intermediate to senior level (3-6 years + experience), working in the retail, data consultancy, and media sectors.
Our findings suggest that analytics professionals changing jobs received a median increase in salary of 15.1%, as opposed to an alternative scenario where analysts who choose to remain with current employers accept an average merit-based salary increase of 5% for remaining in their current role. It can therefore be claimed that if money is purely the objective for analysts then they have far greater economic power by placing themselves in the market as an active candidate.
We have presented our findings below, which present the distribution of increase in compensation, along with increases in median base salary according to seniority.
Distributed Base Salary Increase According to Predictive Analyst Job Changes
One in four analytics professionals received salary increases between the range of zero and 10%, with half of the sample receiving an increase between 11-20%. Increases in excess of 25% of base salary are comparably rare.
There are significant insights to be gained from our findings, most notably that at the lower end of the experience scale, there is an increased supply of more junior talent, attracted to the field from other areas, which has the knock on effect of reducing median compensation increases for those analysts changing jobs at an intermediate level of experience.
In contrast, at the senior end of the spectrum, as more companies recognise the important of Big Data and the imperative to appoint data science and quant leaders to establish a higher level data function within the business, the demand for talent at this level has risen markedly, which has pushed salaries up considerably.
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By Alex White