If you’d ask an economist, he would say, it is just a simple case of supply and demand.
But is it?
Have you ever tried to Google “why data scientist salary is high”?
If you happen to Google keywords related to data scientist salary, you’ll definitely run into headlines such as – “why is a data scientist salary so high” or “why do data scientists get paid so much”?
By 2021, you will find more than 3,037,809 new job openings in data science worldwide, which predicts Analytics Insight.
With the increased intensity of data science job openings, this clearly indicates that the data science industry is here to stay.
According to the report “Investing in America’s Data Science and Analytics Talent: The Case for Action”, around 70 percent of business leaders in the US are likely to prefer individuals having data skills in 2021.
The average salary of a data scientist can range anywhere between USD 79,000 at the entry-level to USD 245,000 at the higher-level. In the United States, a data scientist of all experience can earn around USD 108,224 per annum.
This does not include bonuses, compensation, or profit-sharing.
Break-up of a data scientist salary, industry-wise
With data science growing at a staggering rate, enterprises across the world are hiring for data scientist roles. However, you need to keep in mind that the salary compensation offered to you largely depends on your past work experience and the level of expertise using data science tools and technologies.
Industries like finance, insurance, IT, and professional services are well-known to have a high demand for data scientists says IBM. These industries altogether create nearly 59 percent of all the job openings in data science.
Let us have a look at the top industries that generate the highest demand for the data science career:
- Finance and Insurance -19 percent
- Professional, Scientific, and Technical Services -18 percent
- Information Technology -17 percent
- Management of Companies and Enterprises – 13 percent
- Manufacturing -12 percent
- Utilities -10 percent
- Wholesale Trade -9 percent
- Mining, Quarrying, and Oil and Gas Extraction -9 percent
- Public Administration -7 percent
- Agriculture, Forestry, Fishing, and Hunting – 6 percent
The highest data scientist salary falls under industries like:
- Finance and insurance – USD 113,754
- Professional Services – USD 107,185
- Manufacturing – USD 106,926
Besides generating the greatest need for data science professionals, the finance and insurance industry is also known to offer the highest salaries in data science, according to a report by IBM.
What are you waiting for?
Aren’t you excited to know how to become one of the highest-paid data scientists in the tech market?
On average a data analyst earns around USD 61,000 per annum, whereas a data scientist earns much more than a data analyst.
Not to mention, almost most of the data analyst is now shifting to data science due to its unending demand. One of the best ways to learn industry skills is by taking up data science certification programs. A credible certification provides the candidate with the latest skills and hands-on experience to tackle real-world problems.
Since employers prefer individuals having practical knowledge, earning a certification is ideal. You can keep upgrading your skills while building your knowledge at the same time.
Data science skills that will get you hired as a data scientist includes –
- Mathematics and statistics
- R and Python programming
- ETL (Extract, Transform, and Load) data
- Machine learning
- Advanced machine learning
- Data wrangling
- Data exploration
- Data visualization tools
- Big data frameworks
Besides skills, you can also start working on projects using open source platforms like GitHub. These platforms keep you equipped with the working knowledge of data science tools and technologies. You can pick any type of project you’re comfortable with to start your data science journey.
Employers are much more interested in knowing whether you’re capable of handling data or not.
Here’s how your career will look like in the market – based on the industry you choose:
- Financial analyst
- Risk analyst
- Big data developer
- Spark developer
- Hadoop developer
- Python developer
- Scala developer
- Software developer
- BI developer
- Data analyst
- BI analyst
- ETL developer
As mentioned earlier, data scientists employed in industries like finance and insurance, manufacturing, and professional services are likely to earn more than the other industries.