Burtch. Works. The. Study. Salaries of Predictive Analytics Professionals. September 2016

Transcription

1 The Burtch Works Study Salaries of Predictive Analytics Professionals September 2016 Burtch Works Executive Recruiting Linda Burtch, Managing Director

2 TABLE OF CONTENTS Section 1: Introduction... 3 The Coronation of Predictive Analytics Defining Predictive Analytics Professionals... 5 This Year s Compensation Insights... 5 About Burtch Works... 6 Section 2: How Compensation Has Changed... 7 The Sample... 8 How Changes in Compensation Were Measured... 8 Changes in Base Salaries... 9 Section 3: Compensation & Demographic Profile Compensation by Job Category Education Residency Status Region Industry Gender Years of Experience Section 4: Appendix A/Study Objective & Design Study Objective Why The Burtch Works Studies Are Unique The Sample How Changes in Compensation Were Measured Identifying Predictive Analytics Professionals Completeness & Age of Data Segmentations of Predictive Analytics Professionals Section 5: Appendix B/Glossary Glossary of Terms Burtch Works Executive Recruiting, 1560 Sherman Avenue, Suite 1005, Evanston, IL info@burtchworks.com 2016, Burtch Works LLC. Unauthorized reproduction is strictly prohibited. Opinions reflect judgment at time of publication and are subject to change. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 2

3 Section 1 INTRODUCTION 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 3

4 The Coronation of Predictive Analytics: A Four-Year Retrospective The transition that has occurred in the market for predictive analytics professionals (PAPs) between 2013, when we published our first Burtch Works Study, and 2016, has influenced some of the most notable business trends over the past decade. There are several major shifts that we have watched develop, including the widespread adoption of data-driven initiatives, more professionals entering the analytics market, and a blending of predictive analytics and data science, all of which are shaping the business landscape and will continue to do so over the coming years. Chief among these major trends that have developed in the so-called Big Data space over the past few years is the extensive proliferation of quantitative initiatives. As we ve pointed out in previous reports, predictive analytics teams are cropping up everywhere, including in legacy corporations, growing startups, government teams, and non-profits, from Silicon Valley to Wall Street. Earlier this year, Burtch Works and Forrester Research fielded a joint survey to senior analytics leaders to gauge the state of customer analytics adoption across the US. As Forrester points out in their resulting State of Customer Analytics 2016 report, a greater proportion of analytics teams are now considered leaders (as opposed to followers or laggards) when compared to the 2014 report, and the average business currently uses at least six data sources vs. four sources two years ago. However, it is interesting to note that the proportion of basic analytics teams that Forrester refers to as laggards has remained almost the same, showing that there are still many ground-floor challenges associated with growing an analytics capability that must be addressed. Perhaps the trend that has been the most readily visible to us as quantitative recruiters is the influx of professionals entering the analytics market, whether from one of the new Predictive Analytics Master s programs or from another career path. Educational opportunities are diversifying due to the availability of more Master s programs, in-house training, bootcamps, and online learning options, which have become quite popular due to the overwhelming number of job opportunities available in analytics. Forrester s data seem to point to an influx also, as only 26% of analytics leaders reported that finding predictive analytics talent is one of their top three challenges this year, down from to 35% in A caveat to this increase in the talent supply is that many of these are inexperienced professionals, and so the boost is primarily at the very junior end professionals with three or less years experience. The supply of PAPs with four or more years experience remains challenged. As we pointed out last year, the distinction between data scientists and other predictive analytics professionals continues to blur. Put simply, we distinguish between the two because data scientists, by our definition, manage unstructured data or continuously streaming data, using computer science skills that are uncommon for traditional predictive analytics professionals, who manage structured data. However, as time goes on, more traditional PAPs are learning typical data science platforms and tools like Hadoop, Spark, or Python, and this blending of the two fields will likely continue. As one example, this year, our SAS, R, or Python flash survey of over 1,100 quantitative professionals marked the first year that SAS was not the dominant tool choice among analytics professionals, and the three-year trend points to open source options picking up steam. ¹ The State Of Customer Analytics 2016, Forrester Research, Inc., July 20, , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 4

5 Although we re not quite there yet, we are heading for a future where predictive analytics is the norm, not the exception. Soon, business as usual across corporations will include quantitative experts embedded throughout the company, including the C-Suite. Defining Predictive Analytics Professionals We have historically defined predictive analytics professionals (PAPs) as those who can apply sophisticated quantitative skills to data describing transactions, interactions, or other behaviors of people to derive insights and prescribe actions. PAPs are distinguished from business intelligence professionals or financial analysts by the enormous quantity of data with which they work, well beyond what can be managed in Excel. However, this definition also encompasses data scientists, who are excluded from this study because of their distinguishing ability to work with unstructured data, resulting in different compensation. Data scientists are a subset of PAPs who have the computer science skills necessary to acquire and clean or transform unstructured or continuously streaming data, regardless of its format, size, or source. Unstructured data may include: video streams, audio data, social media web scrapes, sensor data, raw log files, or long blocks of written language. For information about data scientists and their compensation, you may consult our Burtch Works Study: Salaries of Data Scientists, published in April This report will focus specifically on PAPs that work with structured data. For more information on how we identified predictive analytics professionals for this study, see Appendix A on page 27. This Year s Compensation Insights Burtch Works is pleased to share the annual update to our predictive analytics salary report series, The Burtch Works Study: Salaries of Predictive Analytics Professionals, September Compensation and demographic data of 1,216 PAPs is detailed in this report. This new data was collected by our recruiting staff during the 12 months ending April 2016, and this report is a follow up to our 2015 report. The PAPs included in this year s sample work for more than 650 companies nationwide. Our reports show base salary variations for PAPs individual contributors and managers alike as well as the proportions eligible for a bonus, and the median and average bonuses received. This report also shows how base salaries have changed since the last study was published. Finally, it shows how predictive analytics salaries vary based on several characteristics such as job level, industry, region, education, gender, and residency status. Median base salary of individual contributors ranges from $75,000 at level 1, increasing with job level, up to $126,500 at level 3. Over 73% of all individual contributors are eligible for a bonus, and the median bonus received varies from $7,150 to $17,775, depending on job level. Managers earn higher base salaries and larger bonuses than individual contributors. Managers median salaries increase with job level as well, ranging from $130,000 for those at level 1, up to $225,000 at level 3. More than 91% of managers are bonus eligible, with median bonuses from $20,188 at level 1, to $62,100 at level , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 5

6 Base salaries remained relatively steady since last year s report. At all job levels, single-digit changes in median base salaries were observed. For individual contributors at levels 2 and 3 and managers at levels 1 and 2, salaries increased between 1% and 6%. For the least- and most-experienced PAPs, base salaries decreased slightly (1% for level 1 individual contributors and 4% for level 3 managers). Section 2 provides further details on how compensation of PAPs has changed since last year s study. The compensation of PAPs also varies based on education, region, residency status, industry, and gender, all of which are detailed in Section 3. For instance, PAPs who hold a Ph.D. earn higher base salaries than those with a Bachelor s or Master s degree. Consistent with last year, PAPs employed on the West Coast and in the Northeast also continue to earn higher salaries than those in other regions, at most career levels. About Burtch Works Burtch Works Executive Recruiting is the leading resource for difficult-to-find, highly qualified analytic and marketing research talent in the United States. Our team has decades of experience in quantitative and marketing research recruiting, and each recruiter understands the particular distinctions of their area of expertise so that they can collaboratively search for talented professionals who will be perfectly suited to each role. As data-driven practices become a necessary strategy to remain competitive, the quantitative fields continue to experience incredible growth, and Burtch Works has built a very diverse network of thousands of professionals to address the growing number of quantitative positions nationwide. This network is the basis of a business built on long-standing and mutually beneficial relationships with both candidates and clients. Linda Burtch, Burtch Works founder and Managing Director, has emphasized that the most rewarding aspect of her career is creating the perfect match, and has established a dedicated team of recruiters who share this vision for Burtch Works. Ms. Burtch has over 30 years experience in quantitative recruiting, with an extensive knowledge of the analytics fields and how the industry has rapidly evolved over the past few years. She often writes on topics of interest to the analytics community, and keeps her finger on the pulse of current trends of concern to clients and analytics professionals alike. Ms. Burtch and her colleagues keep in touch with over 24,000 quantitative professionals in every industry across the country, many of whom Burtch Works recruiters have known throughout their careers. In maintaining such strong relationships with analytics professionals and clients, Burtch Works has the unique opportunity to examine hiring and compensation trends over time, and publishes several highly-anticipated studies each year that investigate demographic and compensation data for predictive analytics, marketing research, and data science professionals. The Burtch Works Studies provide an exceptional vantage point on compensation for these professionals across the country, and contain critical information both for individuals mapping their career strategy, and for hiring managers hoping to recruit and retain outstanding personnel to their teams. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 6

7 Section 2 PREDICTIVE ANALYTICS PROFESSIONALS: HOW COMPENSATION HAS CHANGED 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 7

8 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. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 8

9 Changes in Base Salaries In four of the six job categories, single-digit increases were seen in the median base salaries of PAPs. Individual contributors at levels 2 and 3 and managers at level 1 and 2 showed base salary increases between 1% and 6%. In the remaining two job categories the least and most experienced groups, level 1 individual contributors and level 3 managers, respectively single-digit decreases were seen. The largest increase in base salaries (6%) was seen among individual contributors at level , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 9

10 Figure 1. Comparison of Predictive Analytics Professionals Median Base Salaries by Job Category Manager, Level % Manager, Level 2 +3% Manager, Level 1 +4% Individual Cont., Level 3 +1% Individual Cont., Level 2 +6% Individual Cont., Level 1-1% $0 $50,000 $100,000 $150,000 $200,000 $250, , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 10

11 Figure 2. Change in Base Salaries of Individual Contributors by Job Level Job Level Year 25% Median 75% 2016 $67,500 $75,000 $85,000 Individual Contributor, ,000 76,000 91,500 Level 1 Change +4% -1% -7% ,000 95, ,000 Individual Contributor, ,000 90, ,758 Level 2 Change +13% +6% +4% , , ,000 Individual Contributor, , , ,000 Level 3 Change +7% +1% -3% Figure 3. Change in Base Salaries of Managers by Job Level Job Level Year 25% Median 75% 2016 $118,000 $130,000 $145,000 Manager, , , ,000 Level 1 Change +7% +4% -3% , , ,000 Manager, , , ,000 Level 2 Change +9% +3% -3% , , ,000 Manager, , , ,500 Level 3 Change +<1% -4% -3% 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 11

12 Section 3 PREDICTIVE ANALYTICS PROFESSIONALS: COMPENSATION & DEMOGRAPHIC PROFILE 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 12

13 Compensation by Job Category PAPs median base salaries increase with job category. Level 1 individual contributors earn a median base salary of $75,000; the median for those at level 3 is $126,500. Level 1 managers earn a median base salary of $130,000; those at level 3 have a median base salary of $225,000. Over 73% of all PAPs are eligible for bonus pay. For managers, more than 91% are eligible. Median bonuses received by individual contributors ranged from $7,150 at level 1, up to $17,775 at level 3. For managers, median bonuses ranged from $20,188 at level 1, up to $62,100 for those at level , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 13

14 Figure 4. Compensation of Individual Contributors by Job Level Individual Base Salary Bonus Contributor Job Level N 25% Median Mean 75% Eligible Median Mean Level $67,500 $75,000 $75,878 $85, % $7,150 $7,549 Level ,000 95,000 98, , % 10,545 12,770 Level , , , , % 17,775 20,592 Figure 5. Compensation of Managers by Job Level Manager Base Salary Bonus Job Level N 25% Median Mean 75% Eligible Median Mean Level $118,000 $130,000 $130,280 $145, % $20,188 $23,381 Level , , , , % 38,000 45,690 Level , , , , % 62,100 73,080 Figure 6. Median and Mean Base Salaries of Individual Contributors by Job Level $240,000 $220,000 $200,000 $180,000 $160,000 $140,000 Figure 7. Median and Mean Base Salaries of Managers by Job Level $240,000 $220,000 $200,000 $180,000 $160,000 $140,000 $120,000 Median Mean $120,000 $100,000 $100,000 $80,000 $80,000 $60,000 Level 1 Level 2 Level 3 $60,000 Level 1 Level 2 Level , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 14

15 Education 86% of PAPs have an advanced degree: 69% have a Master s degree, and an additional 17% have a Ph.D. Except for the most senior-level managers, for whom management skills and experience play a critical role, at every job level, PAPs earn the highest base salaries when they hold a Ph.D. compared to those holding a Bachelor s or Master s degree. Figure 8. Distribution of Predictive Analytics Professionals by Education Ph.D. 17% Bachelor's 13% Ph.D. ABD <1% Master's 69% No degree 0% 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 15

16 Figure 9. Distribution of Base Salaries of Individual Contributors by Job Level and Education Base Salary Job Level Education N 25% Median Mean 75% Individual Bachelor s 36 $65,000 $70,000 $71,417 $80,000 Contributor, Master's ,000 75,000 75,334 83,000 Level 1 Ph.D ,000 90,000 93, ,000 Individual Contributor, Level 2 Individual Contributor, Level 3 Bachelor s 39 85,000 90,000 94, ,000 Master's ,000 93,000 97, ,000 Ph.D , , , ,000 Bachelor s , , , ,000 Master's , , , ,000 Ph.D , , , ,000 Note: Sample size for professionals with Ph.D. ABD was too small to report. Figure 10. Distribution of Base Salaries of Managers by Job Level and Education Job Level Manager, Level 1 Manager, Level 2 Manager, Level 3 Base Salary Education N 25% Median Mean 75% Bachelor s 22 $115,000 $120,000 $123,841 $133,750 Master's , , , ,000 Ph.D , , , ,000 Bachelor s , , , ,000 Master's , , , ,000 Ph.D , , , ,000 Bachelor s 9 197, , , ,000 Master's , , , ,000 Ph.D , , , ,000 Note: Sample size for professionals with Ph.D. ABD was too small to report. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 16

17 Residency Status 38% of PAPs are non-u.s. citizens with F-1/OPT, H-1B, or another visa, or permanent residency which allows them to work in the U.S. For individual contributors at levels 1 and 2, foreign-born PAPs account for 49% and 52% of professionals respectively. Similar to The Burtch Works Study: Salaries of Data Scientists, April 2016, there was an increase in citizens among level 1 individual contributors. In the 2015 report, citizens accounted for 42% of this group, compared to 51% this year. This may be an indicator that additional American students are turning to analytics as a rewarding and lucrative career. Also for PAPs who are level 1 individual contributors, as has been true in past reports, foreign-born professionals (those with permanent residency, H-1B, or F-1/OPT visas earn slightly higher median base salaries as their citizen counterparts: $1,000 more. Figure 11. Distribution of Predictive Analytics Professionals by Residency Status Perm. Resident 20% H-1B 15% U.S. Citizen 62% F-1/OPT 2% Other 1% 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 17

18 Figure 12. Residency Status of Predictive Analytics Professionals by Job Category Manager, Level 3 Manager, Level 2 Manager, Level 1 Ind. Cont., Level 3 Ind. Cont., Level 2 Ind. Cont., Level 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Citizen Perm. Resident H-1B F-1/OPT Other Figure 13. Comparison of Residency Status of Level 1 Individual Contributors Perm. Resident 10% Perm. Resident 4% H-1B 35% U.S. Citizen 42% H-1B 33% U.S. Citizen 51% F-1/OPT 12% Other 1% F-1/OPT 11% Other 1% , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 18

19 Figure 14. Median Base Salary of Individual Contributors by Job Level and Residency Status Residency Median Difference Job Level N Status Base Salary from Citizen Citizen 83 $74,000 - Individual Perm Res 7 75,000 +1% Contributor, H-1B 54 75,000 +1% Level 1 F-1/OPT 17 75,000 +1% Citizen ,000 - Individual Perm Res ,000 +5% Contributor, H-1B 79 92,000-3% Level 2 F-1/OPT Citizen ,000 - Individual Perm Res ,000-2% Contributor, H-1B ,500-6% Level 3 F-1/OPT Note: Individuals with other residency were excluded due to small sample size. Figure 15. Median Base Salary of Managers by Job Level and Residency Status Residency Median Difference Job Level N Status Base Salary from Citizen Citizen 102 $130,000 - Manager, Perm Res ,000 +4% Level 1 H-1B ,000-8% Citizen ,000 - Manager, Perm Res ,000 +3% Level 2 H-1B 9 173,000-1% Citizen ,000 - Manager, Perm Res ,000 0% Level 3 H-1B Note: Individuals with other residency were excluded due to small sample size. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 19

20 Region Similar to prior reports, at almost all job levels, PAPs earn the highest base salaries when they are employed on the West Coast and in the Northeast. Figure 16. Distribution of Base Salaries of Individual Contributors by Job Level and Region Job Level Region Base Salary N 25% Median Mean 75% Northeast 51 $68,250 $75,000 $77,916 $86,000 Individual Southeast 21 67,000 75,000 74,435 81,000 Contributor, Midwest 62 65,000 75,000 74,455 84,500 Level 1 Mountain 9 69,000 75,000 73,222 76,000 West Coast 20 70,000 75,000 77,800 85,000 Northeast 68 88, , , ,250 Individual Southeast 32 87,250 90,000 95, ,750 Contributor, Midwest 68 81,500 90,000 94, ,000 Level 2 Mountain 19 82,500 97,000 94, ,000 West Coast 44 90, , , ,000 Northeast , , , ,750 Individual Southeast , , , ,384 Contributor, Midwest , , , ,000 Level 3 Mountain , , , ,000 West Coast , , , ,250 Figure 17. Distribution of Base Salaries of Managers by Job Level and Region Job Level Manager, Level 1 Manager, Level 2 Manager, Level 3 Region Base Salary N 25% Median Mean 75% Northeast 49 $120,000 $140,000 $136,673 $151,000 Southeast , , , ,000 Midwest , , , ,500 Mountain , , , ,500 West Coast , , , ,250 Northeast , , , ,000 Southeast , , , ,000 Midwest , , , ,000 Mountain , , , ,000 West Coast , , , ,000 Northeast , , , ,000 Southeast , , , ,000 Midwest , , , ,000 Mountain , , , ,500 West Coast , , , , , Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 20

21 Industry Many PAPs continue to be employed in the financial services industry (30%), followed by marketing services and advertising companies (22%) and technology, telecom, and gaming organizations(12%). Salaries continue to vary significantly by industry of employment. Figure 18. Distribution of Predictive Analytics Professionals by Industry Financial Services 30% Marketing Services 22% Tech/Telecom/Gaming 12% Corporate-Other Consulting 8% 9% Retail 7% Healthcare/Pharma 5% Outsourcing CPG Government/Academia 2% 3% 3% 0% 5% 10% 15% 20% 25% 30% 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 21

22 Figure 19. Distribution of Base Salaries of Individual Contributors by Job Level and Industry Job Level Individual Contributor, Level 1 Individual Contributor, Level 2 Individual Contributor, Level 3 Base Salary Industry N 25% Median Mean 75% Advertising/Mktg Services 43 $66,000 $75,000 $74,395 $80,000 Consulting 16 70,000 75,000 76,531 81,000 CPG Financial Services 35 66,000 73,500 78,134 86,250 Healthcare/Pharma 10 70,175 72,000 73,270 74,750 Outsourcing 8 70,000 72,500 75,875 81,250 Retail 15 60,500 75,000 72,333 79,500 Tech/Telecom/Gaming 11 78,570 88,000 85,831 93,000 Other Corporate 21 65,000 75,000 73,619 85,000 Advertising/Mktg Services 55 86,500 95,000 96, ,000 Consulting 18 90,425 97, , ,000 CPG Financial Services 62 88, , , ,000 Healthcare/Pharma 9 70,000 90,000 87,333 95,000 Outsourcing 13 80,000 90,000 95, ,000 Retail 10 90,000 95,000 95, ,250 Tech/Telecom/Gaming 33 88, , , ,000 Other Corporate 22 81,250 90,000 90,545 92,000 Advertising/Mktg Services , , , ,500 Consulting , , , ,500 CPG 8 129, , , ,250 Financial Services , , , ,000 Healthcare/Pharma , , , ,500 Outsourcing 5 125, , , ,000 Retail , , , ,750 Tech/Telecom/Gaming , , , ,000 Other Corporate , , , ,750 Note: Sample size for professionals with in government/academia was too small to report. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 22

23 Figure 20. Distribution of Base Salaries of Managers by Job Level and Industry Job Level Manager, Level 1 Manager, Level 2 Manager, Level 3 Base Salary Industry N 25% Median Mean 75% Advertising/Mktg Services 43 $120,000 $130,000 $134,453 $150,000 Consulting , , , ,500 CPG 7 115, , , ,000 Financial Services , , , ,500 Healthcare/Pharma Retail 9 120, , , ,000 Tech/Telecom/Gaming , , , ,500 Other Corporate , , , ,750 Advertising/Mktg Services , , , ,000 Consulting , , , ,000 CPG 6 175, , , ,500 Financial Services , , , ,000 Healthcare/Pharma , , , ,250 Retail , , , ,500 Tech/Telecom/Gaming , , , ,000 Other Corporate , , , ,000 Advertising/Mktg Services , , , ,000 Consulting , , , ,500 CPG 5 225, , , ,000 Financial Services , , , ,500 Healthcare/Pharma 6 216, , , ,500 Tech/Telecom/Gaming , , , ,000 Other Corporate 5 200, , , ,000 Note: Sample size for professionals with in government/academia was too small to report. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 23

24 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 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 24

25 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 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 25

26 Years of Experience 50% of PAPs have fewer than 10 years of experience. Figure 24. Distribution of Predictive Analytics Professionals by Years of Experience Number of Professionals Years of Experience Note: The recruiters at Burtch Works do not ask the age of the professionals with whom they work. However, they do ask them for their years of work experience, which is highly correlated with age, and shown above is the distribution of PAPs by years of experience. However, salary information is not shown here, because salaries are indirectly related to years of experience through job category. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 26

27 Section 4 APPENDIX A/Study Objective & Design 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 27

28 Study Objective This report is a follow-up to last year s report, The Burtch Works Study: Salaries of Predictive Analytics Professionals, published in September 2015, and its goals are to show (1) current compensation of PAPs and how it varies, and (2) how their compensation has changed since last year s report. By continuing to interview large numbers of PAPs annually, Burtch Works can show both short-term and long-term trends in the demographic attributes of PAPs and their compensation. Why The Burtch Works Studies Are Unique The Burtch Works Studies: Salaries of Predictive Analytics Professionals contain highly anticipated salary and demographic data for PAPs, and are unique because: Burtch Works studies focus solely on predictive analytics professionals The study samples include only professionals who are predictive analytics professionals, and exclude professions that other salary reports may include, such as business intelligence, operations research, information technology, and consumer insights professionals. Burtch Works obtains this data by interviewing predictive analytics professionals Instead of relying on data provided by human resources departments or from a self-reported online survey, Burtch Works interviews every PAP individually. An important advantage of the interview process is that Burtch Works recruiters are able to obtain information about PAPs that is not usually provided by human resources departments that may affect their compensation, such as education and residency status. Additionally, because of their nuanced understanding of the profession, recruiters are able to obtain corrections or clarifications when information provided does not seem credible. Burtch Works salary studies show how compensation varies by job level, region, residency, gender, industry, and education The sample size is big enough to show compensation data, collected over the past year, at a granular level. Further long-term trends are illuminated with each consecutive report. 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. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 28

29 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: 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. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 29

30 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. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 30

31 Segmentations of Predictive Analytics Professionals To examine how the compensation of PAPs varies, Burtch Works used characteristics of their jobs (level, location of employer, industry) and demographic characteristics (gender, education, years of experience, residency status) to segment them. Burtch Works developed the following job categories for the first series of Burtch Works Studies, and the definitions remain the same for the 2016 report: Figure 25. Definition of Individual Contributor Job Levels Individual Contributors Level Level 1 Level 2 Level 3 Responsibility Learning the job, hands-on analytics and modeling Hands-on with data, working with more advanced problems and models, may help train Analysts Considered an analytics Subject Matter Expert, mentors and trains analysts Typical Years of Experience 0-3 years 4-8 years 9+ years Figure 26. Definition of Manager Job Levels Managers Level Level 1 Level 2 Level 3 Responsibility Tactical manager who leads a small group within a function, responsible for executing limited projects or tasks within a project Manager who leads a function and manages a moderately sized team, responsible for executing strategy Member of senior management who determines strategy and leads large teams, manages at the executive level Typical Number of Reports 1-3 reports (direct or matrix) 4-9 reports (direct or matrix) 10+ reports (direct or matrix) 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 31

32 Burtch Works divided the U.S. into these five regions: Northeast Southeast Midwest Mountain West Coast Figure 27. U.S. Geographic Regions WEST COAST MOUNTAIN MIDWEST NORTHEAST SOUTHEAST Note: The Northeast included areas of Virginia within 50 miles of Washington, DC, and the Midwest included areas of Pennsylvania within 75 miles of Pittsburgh. The firms for which PAPs work were divided into these ten industries: Academia/Government Healthcare/Pharmaceuticals Advertising/Marketing Services Outsourcing Consulting Retail Consumer Packaged Goods (CPG) Technology/Telecom/Gaming Financial Services Other Each PAP was assigned to one of these five residency status categories: U.S. Citizen F-1/OPT H-1B Permanent Resident Other Finally, each PAP was assigned to one of these five education categories: No degree Bachelor s degree Master s degree Ph.D. all-but-dissertation (ABD) Ph.D. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 32

33 Section 5 APPENDIX B/Glossary 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 33

34 Glossary of Terms This section provides definitions of terms used in this report. ABD (All-but-dissertation). ABD is a level of education. A person whose level of education is ABD has completed all coursework for a Ph.D. but not a dissertation. Base Salary. An individual s gross annual wages, excluding variable or one-time compensation such as relocation assistance, sign-on bonuses, bonuses, and long-term incentive plan compensation. Bonus. Short-term variable compensation, usually awarded annually, such as individual or company performance-based bonuses. This does not include long-term incentive plan compensation or awards of stock or stock options. Data Scientist. A predictive analytics professional who has both the proficiency for data management required to make enormous sets of unstructured data accessible, and the analytical skills for deriving useful information from those data. F-1/OPT. A residency status that allows a foreign undergraduate or graduate student who has a nonimmigrant F-1 student visa to work in the U.S. without obtaining an H-1B visa. The student is required to have either completed his degree or pursued it for at least nine months. Geographic Region. One of five groups of states that together comprise the entire United States. These five groups of states Northeast, Southeast, Midwest, Mountain, and West Coast are shown in Figure 27 on page 32. H-1B. A non-immigrant visa that allows a U.S. firm to temporarily employ a foreign worker in a specialty occupation for a period of three years, which is extendable to six and beyond. If a foreign worker with an H- 1B visa quits or loses his job with the sponsoring firm, the worker must either find a new employer to sponsor an H-1B visa, be granted a new non-immigrant status, or leave the United States. Individual Contributor. An employee who does not manage other employees. Individual contributors among the PAPs in the Burtch Works sample have all been assigned to one of three levels: Level 1: Responsible for learning the job; hands-on with analytics and modeling; 0-3 years of experience Level 2: Hands-on with data, working with more advanced problems and models; may help train Analysts; 4-8 years of experience Level 3: Considered an analytics Subject Matter Expert; mentors and trains analysts; 9+ years of experience Industry. One of ten groups of firms employing data professionals. These nine industries are Advertising/Marketing Services, Consulting, Consumer Packaged Goods, Financial Services, Healthcare/Pharmaceuticals, Outsourcing, Retail, Tech/Telecom/Gaming and Other. Academia/Government: Institutions (1) whose purpose is the pursuit of education or academic research (such as public universities, private colleges, and for-profit education companies) or (2) that are a part of the governmental system. Advertising/Marketing Services: An industry consisting of firms that provide services to other firms that include advertising, market research, media planning and buying, and marketing analysis. Consulting: Industry that includes both large corporations and small boutique firms that provide professional advice to the managers of other firms. Consumer Packaged Goods: Companies whose products are sold quickly and at relatively low cost, including non-durable goods (e.g. groceries, toiletries) and lower quality consumer electronics. Financial Services: Firms that provide money management, lending, or risk management services, including banks, insurance companies, and credit card organizations. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 34

35 Healthcare/Pharmaceuticals: Firms that provide healthcare services, such as hospitals, and firms that manufacture medicinal drugs. Outsourcing: Companies whose primary workforce is contracted by their clients, in order to move labor out of the internal business process to a third party organization. Many outsourcing companies utilize off-shore resources to complete work for clients. Retail: Organizations that purchase goods from a manufacturer to be sold for profit to the endconsumer. Tech/Telecom/Gaming: Firms that create or distribute technology products or services, such as computer manufacturers and software publishers, and firms that provide telecommunications services. Other: Companies whose industry falls outside of the eight categories described above, such as airline companies, distribution firms, media, and entertainment. Manager. An employee who manages the work of other employees. Managers among the PAPs in the Burtch Works sample have all been assigned to one of three levels: Level 1: Tactical manager who leads a small group within a function, responsible for executing limited-scale projects or tasks within a project; typically responsible for 1-3 direct reports or matrix individuals. Level 2: Manager who leads a function and manages a moderately sized team; responsible for executing strategy; typically responsible for 4-9 direct reports or matrix individuals. Level 3: Member of senior management who determines strategy and leads large teams; manages at the executive level; typically responsible for 10+ direct reports or matrix individuals. Mean. Also known as the average, it is the sum of a set of values divided by the number of values. For example, the mean of N salaries is the sum of the salaries divided by N. Median. The value obtained by ordering a set of numbers from smallest to largest and then taking the value in middle, or, if there are an even number of values, by taking the mean of the two values in the middle. For example, the median of N salaries is the salary for which there are as many salaries that are smaller as there are salaries that are larger. N. The number of observations in a sample, sub-sample, or table cell. OPT. See F-1/OPT. Permanent Resident. A residency status that allows a foreign national to permanently live and work in the United States. Those with this status have a United States Permanent Residence Card, which is known informally as a green card. Predictive Analytics Professionals (PAPs). Individuals who can apply sophisticated quantitative skills to data describing transactions, interactions, or other behaviors of people to derive insights and prescribe actions. They are distinguished from the quants of the past by the sheer quantity of data on which they operate, an abundance made possible by new opportunities for measuring behaviors and advances in technologies for the storage and retrieval of data. Salary Study. A study conducted to measure the distributions by salary of those in specific occupations. Traditionally, these studies have been executed by obtaining salary data from the human resources departments of firms employing professionals in those occupations rather than by interviewing those employees themselves. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 35

36 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. 2016, Burtch Works LLC, Reproduction Prohibited THE BURTCH WORKS STUDY 36