Data scientists are in high demand these days, as companies increasingly rely on data to drive strategic decisions. With the massive amounts of data being generated, organizations need talented professionals who can derive insights from that data. This has led to competitive salaries for data scientists.
But which companies pay the highest salaries for data scientists? Let’s take a look at some of the top companies and their pay scales.
Technology and Internet Companies
Some of the highest paying companies for data scientists are big technology and internet firms like Google, Facebook, Microsoft, and Amazon. These companies deal with huge amounts of user data and leverage data science for everything from targeted advertising to product recommendations. According to Glassdoor, the average base salaries at these companies for data scientists range from $130,000 to $160,000.
In addition to base pay, data scientists at these firms often get very generous stock grants. The total compensation can exceed $200,000 for senior level data scientists. For example, levels.fyi, a crowdsourced compensation platform, shows the following total yearly compensation ranges for data scientists at top tech companies:
Company | Total Compensation Range |
---|---|
$170,000 – $450,000 | |
$150,000 – $350,000 | |
Microsoft | $130,000 – $230,000 |
Amazon | $150,000 – $175,000 |
These technology giants also have some of the best perks and benefits for their data scientists, including free meals, on-site gyms, unlimited vacation policies, and more. This combination of high salaries and amazing perks makes them highly desirable for data science professionals.
Management and Strategy Consulting Firms
Management and strategy consulting companies are also keen on leveraging data analytics to help improve their clients’ businesses. Firms like McKinsey, Bain, Boston Consulting Group, and Deloitte hire a number of data scientists who work on gathering data, building models, and identifying insights for client projects.
According to Glassdoor salary data, data scientists at these top consulting firms can earn $135,000 to $155,000 in base compensation. The total compensation can range from $180,000 to $220,000 once bonuses and profit sharing are factored in.
The work hours are long at consulting firms, often requiring extensive travel to client sites. But consultants get exposure to different industries and problems. This allows data scientists to build experience across many domains.
Financial Services Firms
Banks, hedge funds, insurance companies, and other financial services institutions also employ data scientists in large numbers, leveraging their skills for everything from risk analysis to investment insights. According to Glassdoor, data scientists in the finance sector earn average base salaries between $110,000 to $150,000.
However, total compensation can go up much higher, reaching $200,000 to $300,000 after factoring in annual bonuses. Quant hedge funds and algorithmic trading firms tend to pay at the higher end of this range to attract top data science talent.
For example, Two Sigma, one of the highest paying quant hedge funds, offers total compensation packages from $200,000 to $500,000 for its data scientists and quantitative researchers, according to levels.fyi.
Online Retail and E-Commerce
With consumers increasingly shopping online, e-commerce companies are hugely invested in leveraging data science for their business strategy. Amazon hires data scientists across divisions including its core retail operations, Amazon Web Services, Alexa, Prime Video, and more.
In addition to Amazon, other major e-commerce companies hiring data scientists include Walmart, Target, eBay, Etsy, Instacart, Wayfair, and more. According to Glassdoor, data scientists at these companies can earn $120,000 to $180,000 in total compensation.
The highest salaries tend to be at firms with online marketplace models like eBay and Etsy, where data science is integral to operations. Recommendation engines, targeted promotions, customer segmentation, and pricing analytics are some key applications of data science in e-commerce.
Unicorn Startups
Data science is also critical for fast-growing startups aiming to disrupt industries. These startups offer competitive salaries and stock options to attract top data talent. According to Glassdoor, startups pay data scientists average base salaries of $120,000 to $160,000.
However, total compensation at successful startups can exceed salaries at established companies due to equity upside. For example, Airbnb, Uber, Doordash, and Instacart pay senior data scientists total compensation in the range of $250,000 to $500,000.
The downside is that the equity compensation is risky and tied to the startup’s performance. However, those joining early-stage startups can get in on the ground floor for huge gains.
Education and Academia
Colleges and universities also employ data scientists, but at lower salary ranges compared to industry. According to Glassdoor, the average base pay for data scientists in academia is $85,000 to $130,000.
However, academics get the benefit of flexible schedules, long vacations, and the freedom to pursue research interests. They also get opportunities to consult or teach to supplement their income. Some professors also get additional pay if they take on administrative responsibilities.
The top colleges like MIT, Stanford, and Harvard pay at the higher end for their data science faculty. Professors who get tenure or distinguished chairs can also see their salaries go up significantly.
Government Agencies
Data scientists are also hired by government agencies, but usually at lower salary ranges than private companies. According to Glassdoor, data scientists in the public sector earn average base salaries between $95,000 and $130,000.
Some government data science roles include analytics at the Census Bureau, fraud detection at the IRS, disease tracking at the CDC, and decryption at security agencies. Government data scientists get good job security and benefits like pensions, but the pay lags the private sector.
Non-Profits
Non-profit organizations are getting more data-driven to better serve their communities and allocate resources. However, their budget constraints result in lower salaries for data scientists compared to for-profit companies.
According to Glassdoor, data scientists at non-profits earn average base salaries in the range of $75,000 to $110,000. The exceptions are well-funded non-profits like educational institutions and hospitals that pay closer to private sector rates.
While the pay is lower, non-profit data science roles can be rewarding for those motivated by the mission. They can contribute their skills to worthy causes.
Conclusion
In summary, technology companies, consulting firms, financial institutions, e-commerce players, and well-funded startups tend to pay data scientists the highest salaries, ranging from $150,000 to $300,000 in total compensation.
Government, academia, and non-profits pay on the lower end for data scientists, from $75,000 to $130,000 in base pay. Aspiring data scientists should target roles based on their interests and career goals beyond just compensation.
With the demand for data analytics still on the rise, salaries for data scientists should continue to remain competitive. Job seekers who invest in the right skills and experience will be well-positioned to land rewarding and lucrative roles in this exciting field.