When evaluating salary change data over the past 18 months
of nearly 200 candidates, I have seen both extremes and everything in between
with base salary increases. As far as what predictive analytics professionals
can expect, the average base salary increase is 14.1%. More junior candidates
see slightly higher average increases of 14.3%, with senior candidates at the
VP level seeing increases of 12.6%.
We also took a look at salary increase from an educational
perspective and found that candidates with a doctorate degree see an average
increase of almost 16% in salary, while those with a Bachelor’s can expect
something closer to the overall average of 14%.
Of course these data are ever changing, and depending on the
current state of the economy, these increases will rise and fall respectively.
Candidates expecting a 15 or 20% bump in base pay with each move they make,
however, will be disappointed with the reality of more conservative increases,
especially on the senior end. And while the average pay increase for candidates
is 13.7%, most people actually see changes closer to 6-10%, as seen in this
graph:
Although some candidates do receive pay increases of 20% and
higher, it’s important to keep in mind that these are usually candidates with
uncommon circumstances. Oftentimes these people are underpaid to begin with and
making up for lost ground. However, if you are hoping to increase your salary
by more than 15% in your next position, there are some ways to help make this
happen. Being flexible with geographic locations certainly increases your
negotiating position. You could potentially generate multiple offers and
consequently reap a higher salary. In addition, more remote locations have a
more difficult time attracting strong candidates and may pay more than a larger metro area. Candidates might also consider
roles with heavy travel and longer hours to better weigh options with higher
salary. Consulting companies are one of the leading industries hiring
quantitative workers and can present competitive compensation packages. Moving
into a potentially risky business too, while not as safe of a bet, can be
rewarded accordingly.
Initial salary offers sometimes come with a bit of wiggle
room, but the art of negotiation is delicate and if you choose to engage you
should proceed with caution. Keep in mind that you’ll likely be working closely
with the person with whom you’re negotiating, and you want to be mindful of
your future professional relationships. Be tactful and appreciative, and if
working through a recruiter, strongly consider having them take the reins.
Recruiters are well versed in negotiation and can best represent you to your
employer while getting the best offer possible.
Salary increases haven’t been as significant as one might
expect with all the talk of Big Data in the media, but I am curious to see what
these numbers will look like next year as the data craze continues and more
companies look to expand their analytics practices. That being said, it’s
important to remember that money isn’t everything and there is a myriad of
other factors in your compensation package to consider when switching jobs
including bonus, stock options, sign-ons and relocation assistance, health
benefits, 401k, and much more. Most importantly, you need to ask yourself what
a new job means for your long term career. This very well may have the biggest
impact on your lifetime earning potential.
Stay tuned for more salary analysis in the coming weeks. In
the meantime, I would love to hear your thoughts on salary increases and
whether my findings have been in keeping with your experience.
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