Burtch. Works. The. Study. Salaries of Predictive Analytics Professionals September 2016
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1 The Burtch Works Study Salaries of Predictive Analytics Professionals September 2016 Burtch Works Executive Recruiting Linda Burtch, Managing Director
2 Gender The distribution of men and women within predictive analytics remains steady: 26% of PAPs are female in this year s study. Generally, the percentage of women decreases as the level of experience increases. Unlike last year s report in which men out-earned women at every level, this year, in two of the six job categories, women earn the same or slightly higher base salaries than men. Figure 21. Distribution of Predictive Analytics Professionals by Gender Female 26% Male 74% Figure 22. Gender of Predictive Analytics Professionals by Job Category Manager, Level 3 Manager, Level 2 Manager, Level 1 Individual Cont., Level 3 Individual Cont., Level 2 Individual Cont., Level 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Male Female 2015, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 2
3 Figure 23. Median Base Salary by Job Category and Gender $225,000 96% $200,000 $175, % $150,000 $125,000 97% 97% $100, % $75,000 95% $50,000 $25,000 $0 IC, Level 1 IC, Level 2 IC, Level 3 MG, Level 1 MG, Level 2 MG, Level 3 Male Female 2015, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 3
4 The Sample This sample contains 1,216 of the more than 24,000 PAPs which Burtch Works maintains contact with. Burtch Works collected the data for this study in interviews conducted over the 12 months ending April 2016, which is the year immediately following the period of interviews for the 2015 study. Professionals were included in the sample only if (1) they satisfied Burtch Works criteria for PAPs, and (2) Burtch Works obtained complete information about that individual s compensation, demographic, and job characteristics. How Changes in Compensation Were Measured While some of the 1,216 PAPs in this sample were also in the samples for our previous studies (published in 2013, 2014, and 2015), others were not. Therefore, changes in compensation were not measured by differencing current compensation and compensation reported for the previous study and then taking medians (and other percentiles) of the differences. Instead, changes were measured by comparing medians (and other percentiles) of current compensation to those reported in last year s study. Identifying Predictive Analytics Professionals PAPs apply sophisticated quantitative skills to very large sets of data describing transactions, interactions, or other behaviors of people to discern patterns in those behaviors and to prescribe actions for their firms. What distinguishes them from other quantitative professionals, for instance financial analysts or web analytics professionals, is the volume of data which they work with. PAPs include data scientists, but data scientists are not included in the sample for this study because they operate on very large sets of unstructured data, requiring additional computer science skills, while traditional/other PAPs work with more structured data. Burtch Works also tracks the compensation of data scientists in separate studies which can be found on our website, the latest published in April To identify PAPs, Burtch Works uses these criteria: 1. Educational Background PAPs typically have a degree usually an advanced degree (a Master s or Ph.D.) in a quantitative discipline such as Applied Mathematics, Statistics, Economics, or Operations Research. Some professionals with an MBA are also PAPs if their MBA program had a quantitative emphasis. (Burtch Works expects the number of MBAs among PAPs to increase as many business schools have been introducing predictive analytics programs.) 2. Skills PAPs are proficient users of analytic tools for discerning patterns in data. Also, they can use one or more tools for operating on large data sets (see criterion 3), such as SAS and/or R. 3. Dataset Size The size of the datasets that PAPs work with are measured in gigabytes, terabytes, or petabytes. 4. Job Responsibilities PAPs have job responsibilities in the following areas: 2015, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 4
5 Analytical Database Marketing: Studies existing customers using methods such as customer segmentation, campaign targeting and effectiveness, propensity modeling, and customer lifetime value analysis. Credit Risk Analytics: Measures consumer, enterprise, and market risk levels. Results of analyses might impact the price of product, such as the interest rate for a credit card or its availability, as in the case of a loan. Marketing Science: Predicts consumer behavior using analytics such as marketing mix modeling. Analysis can use transaction-, store-, or market-level data. Professionals whose jobs are described as analytics management, business intelligence, marketing research, and operations research are not considered PAPs, because they do not work with large datasets or because, in the case of operations researchers, their function is to optimize welldescribed processes rather than search for patterns in data. Although data scientists are a subset of PAPs, they were excluded from this sample, because they have atypical computer science skills to manage unstructured data, resulting in higher compensation bands. They were the focus of a separate study, The Burtch Works Study: Salaries of Data Scientists, which was released in April Completeness & Age of Data A PAP was included in the sample only if Burtch Works had complete data about their compensation, and demographic and job characteristics. All of the 1,216 PAPs in the sample were interviewed during the 12-month period ending April 2016, which is the year immediately following the period of interviews for the 2015 study. All were interviewed by Burtch Works recruiters while executing searches for clients. 2015, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 5
6 Visit to download the entire Burtch Works Study ABOUT BURTCH WORKS Burtch Works is a specialized recruiting firm that focuses on placing quantitative professionals in analytics, data science, and marketing research roles nationwide. Our recruiters have decades of experience recruiting in their quantitative specialties, and have built strong relationships with hiring managers and HR professionals at a plethora of organizations in every industry, ranging from emerging startups, to Fortune 50 global corporations, to Wall Street hedge funds. We have always closely followed hiring trends and talent movement, and developed The Burtch Works Studies as comprehensive industry reports on compensation and demographic trends within our primary specialties: predictive analytics, marketing research, and data science. Burtch Works Founder and Managing Director, Linda Burtch, has over 30 years experience in quantitative recruiting, and has been interviewed for her insights on this in-demand talent pool by The New York Times, The Wall Street Journal, CNBC, Mashable, The Chicago Tribune, Fox News, Forbes, Analytics Magazine, InformationWeek, and many more. Whether you re looking to hire predictive analytics professionals for your staff or evaluating your career options, let s chat about how we can partner with you! CONTACT US Looking to hire analytics, data science, or marketing research talent? Planning your next career move and want to see if we have positions that match your experience? info@burtchworks.com to start the process and learn about what Burtch Works can offer you. 2015, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 6
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