With the evolution of technology and digitalization, data science is becoming increasingly popular among businesses, and with this growth, the need for data scientists is also increasing.
The U.S. Bureau of Labor Statistics predicts that the employment of data scientists will grow 35% from 2022 to 2032, which is much faster than the average for all other occupations. In May 2023, the annual wage for a data science job was $108,020.
Naturally, it reflects the scope for many job seekers – freshers and experienced. But here’s the catch. While it is expected and advertised to be a high-paying career, there are a lot of discrepancies based on roles, companies, and opportunities.
So, how do you get to the creme of the crop? Let’s find out.
Where should I apply?
Money isn’t everything, but it is indeed important. So, when choosing which company to join, comparing salaries is crucial. There is a significant gap between what different companies offer in data science jobs.
This data shows that Netflix blows other places out of the water for total compensation (including salary, bonuses, and stock options). Big names like Facebook, Amazon, Apple, Netflix, and Google (FAANG companies) are top, but Uber, LinkedIn, and Intuit are also pretty generous.
Besides the company, location is crucial in finding high-paying data science jobs. So, make sure to compare the compensation for different locations. Data scientists in the US seem to make more, especially in California. So, if you’re in the US, open to moving, or can get a remote job, you might be well on your way to a high-paying data science job.
However, there is more than one factor impacting the compensation for a job in data science. One of these factors is the industry. Let’s look at industries and compare them by their pay range:
- Financial Services and Insurance: The financial sector or BFSI encompasses banking, investment, and insurance careers. These jobs are in high demand and can offer attractive compensation packages.
- Information Technology (IT): IT professionals are always needed, and their skills can be valuable. This broad field includes web development, data science, and cybersecurity, to name a few.
Those are just a couple of high-paying options. Let’s also consider some sectors that fall in the middle range:
- Government and Administration: Government jobs offer stability and benefits; some positions can come with competitive salaries.
- Management Consulting: Consultant roles involve helping businesses solve problems and improve efficiency. They can be quite demanding but also rewarding.
- Healthcare: Doctors and other healthcare professionals are crucial to our well-being, and their expertise is well-compensated.
Do I need a degree?
With several online courses, books, and other resources available, many alternatives exist to learn data science. However, a college degree (bachelor’s, master’s, or even a PhD) still matters to employers and can ensure a bigger paycheck for you.
Almost every candidate for a data science job seems to have some college education these days. The number goes up to 90%.
While companies are getting more flexible and hiring folks with bachelor’s degrees, a Master’s is still pretty common. Interestingly, even though PhDs are impressive, they might not always lead to the highest salaries compared to someone with a focused Master’s in data science.
Nonetheless, it’s beneficial to get a degree if you are trying to make a full-time career in data science.
How much experience do I need?
As with any other domain or job role, data science jobs pay more for experience. You might have to lower your expectations if you are looking for your first data science job.
The relationship between years of experience and total compensation can be quantified by calculating the Pearson correlation coefficient. Studies have shown this correlation is around 0.35, indicating a moderately positive relationship.
However, this relationship is stronger earlier in one’s career. For individuals with more than 12 years of experience, other factors besides years of experience play a significant role in determining total compensation.
Nevertheless, you can land a prospective data science role with zero prior experience, especially if you have a strong educational background and a portfolio showcasing your data skills.
Many data science jobs seek candidates with 3-5 years of experience. In this range, you’ll have had a chance to develop a well-rounded skillset and demonstrate your ability to tackle real-world problems.
With 5+ years, you’ll be considered a mid-level to senior data scientist. Here, your leadership, communication, and ability to manage complex projects become even more crucial.
How do you increase your salary in a data science job?
As mentioned earlier, the pay scale at a data science job is directly related to your educational qualifications. If you don’t have a degree, consider pursuing a bachelor’s or master’s in data science or other relevant fields like statistics, computer science, or mathematics. Ph.Ds might also help for some high-level senior positions. If you aspire to an advanced role, an advanced degree could be a strategic investment.
Beyond the Degree: Building Your Skillset
While education is important, it’s not the sole factor influencing salary. Expanding your skillset can significantly impact your earning potential. Here are some of the most crucial technical skills for data scientists to master:
- Machine Learning/Deep Learning
- Artificial Intelligence (AI)
- Risk Analysis
- Cloud Tools and Data Analysis Platforms
- Software Engineering Skills/Programming Languages (e.g., Python, R)
- Statistical Analysis
- Data Mining and Cleaning
- Big Data
- Data Warehousing and Structures
Highlighting Your Skills on Your Resume
Creating an optimized resume can go a long way in showcasing your most sought-after skills to potential employers. Make sure to highlight the key skills required in a data science job and relevant experience, if any.
Conclusion
To sum up, data science is a potential career and can pay handsomely. It is the prime time to step into this career.
Boost your data science salary with education and experience! Enroll in Mu Sigma as a University to develop the required skillset to grab a high-paying data science job. Experience an industry-academia collaboration and become future-ready.
