In case you missed it, we recently released our latest Burtch Works Study, with updated salaries and demographic information on 1,757 Predictive Analytics Professionals (PAPs) across the US. I thought I would quickly put together a blog with some notable findings for you, but rest assured there is a lot more data to be found in the full report,which you can download here.
To start things off, Burtch Works defines 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”. Professionals 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 well-described processes rather than search for patterns in data. Although data scientists are PAPs under our definition, they were excluded from this sample, because they have atypical computer science skills, resulting in significantly higher compensation, and were the focus of a separate study, The Burtch Works Study: Salaries of Data Scientists, in April 2015.
PAPs are each matched to a job category based on whether they are an individual contributor (IC) or a manager (MG), and how many years’ experience they have (for IC) or how many direct reports they manage (for MG).
61% of this sample consists of ICs and their median base salary increased at all job levels. 77% of ICs are eligible for a bonus, which is a six point increase over 2014. The median bonus received varies from $8,100 to $18,100, depending on job level. The other 39% of the sample are MGs. Median base salary of MGs also increased at all job levels. 94% are eligible for a bonus, an increase of three percentage points over last year. The median bonus received by MGs varies from $23,000 to $75,000 depending on job level.
For ICs and MGs, increases in median base salary vary by level. Level 2 ICs had the smallest increase in median base salary, compared to last year, 2%, and those at level 3 had the largest increase, 9%. For MGs, those at level 1 had the smallest increase, 3%, while those at level 2 had the largest increase, 6%.
For all PAPs, compensation varies the most depending on job type and level: whether an IC or MG, and with scope of responsibility. The median base salary of ICs varies from $76,000 for those at level 1 to $125,000 for those at level 3. The median base salary of MGs varies from $125,500 for those at level 1 to $235,000 for those at level 3. The proportion of ICs eligible for a bonus varies from 69% for those at level 1 to 87% for those at level 3. Over 92% of MGs at all levels are eligible for bonuses. Regardless of job level, the median bonus paid to MGs is significantly greater than the median bonus paid to ICs.
Compensation of PAPs also varies based on characteristics including education level, and region and industry of employment. Historically, PAPs working in the Northeast and on the West Coast have been paid more than other PAPs, and PAPs working for consulting firms were paid more than those working in other industries. We still see this regional variation, but industry-related compensation data are more varied.
40% of all PAPs are non-U.S. citizens with an F-1/OPT, H-1B, green card, or another visa that allows them to work in the U.S. 58% of level 1 ICs are not U.S. citizens. The proportion of foreign-born PAPs decreases with job level as many foreign-born PAPs obtain U.S. citizenship through corporate sponsorship or other means over time. As was true in 2013 and 2014, entry-level ICs who hold a green card or are on an H-1B visa earn more than U.S. citizens.
86% of PAPs have a graduate degree: 18% of this year’s sample have a Ph.D. or are Ph.D. ABD, and another 68% have a Master’s degree. Among ICs at all levels, those with a Ph.D. are paid more. The median base salaries of ICs holding a Ph.D. range from $16,000 to $20,000 more than those holding a Master’s degree, and $17,500 to $27,000 more than those holding a Bachelor’s degree, depending on job level.
The current study suggests a slight overall decrease in the number of women in predictive analytics: 25%, versus 26% reported a year ago. Men are paid more than women in all job categories of PAPs, but the difference in median base salary between men and women is in no case greater than 13%.
Perhaps due to the recent attention to advanced analytics, younger professionals have been flocking to careers in predictive analytics, lowering the median and mean years of experience from 10 and 11.5 years respectively in last year’s report, to nine and 10.5 this year. Over 74% of PAPs have no more than 15 years of experience.
For more insights from the report, you can also view our recent webinar on YouTube, or download our slides from the presentation. Our study shows salary variations for PAPs – including both ICs and MGs – as well as the proportions eligible for a bonus, and the median and average bonuses received, plus how these have changed since the last study was published in September 2014. Lastly, it shows how predictive analytics salaries vary based on job level, industry, location, gender, education, and residency status.