What Is The Cost Of Hiring A Data Scientist?
Updated: May 19, 2022
If you are wondering about what the cost of hiring a data scientist is going to be for your business, then you've come to the right place. This article will provide you with some insights on how much a data scientist costs.
How Much Do Data Scientists Make?
Knowing how much a data scientist's wage is can be tricky. The cost of hiring a data scientist depends on a number of different factors. These include the:
Number of years of experience the individual has
Company's budget for this position
Type of data scientist you need to hire (i.e., whether you want an entry-level employee, senior level worker, or expert)
Location where your business operates
According to Indeed.com, Data Scientist make an average of $122K across the US. In California the average is closer to $146K and in Colorado employers can except to be close to $117K.
The Costs of Hiring a Data Scientist in-house
If you’re thinking about hiring a data scientist, the cost might be something that concerns you. This is especially true if you are a small business. But data scientists can be expensive to hire and it’s not a decision to be taken lightly. There are many factors that go into the cost of hiring a data scientist including experience, which is actually one of the largest determining factors.
Hiring an experienced data scientist is more expensive than hiring one with no experience because they have worked on more projects and are able to tackle complex issues and communicate complex ideas in simple ways that employees can understand and use to make decisions. However, this person will take longer to train as well because they will need time getting familiar with your company's culture and protocols before they get started on their first project or task. The process of training someone with no experience may be faster but less efficient; therefore resulting in greater costs overall due to lack of productivity during training sessions compared against an experienced candidate who already knows how things work around here!
How Much A Data Scientist With Little to No Work Experience Costs
If you’re a company looking to hire a data scientist, the first thing to know is that in most cases, you won’t be hiring someone just out of school. While more and more universities are offering data science degrees, it can still be hard to find people with the proper education. Especially if you’re looking for someone with work experience, expect to pay a premium. According to Glassdoor, the average data scientist salary is about $117,212 (and growing). This is not including bonuses or other benefits like stock options. Factoring these in can drive compensation up even further.
It doesn’t have to cost this much though. In fact, some companies get away by paying as little as $65K per year in their starting salary offer! That said, these companies are usually smaller than Uber or Google and they often don’t offer any extra perks like free meals and unlimited vacation time so be sure that whatever number they do offer will meet your needs before signing anything!
How much does it cost to hire a data scientist on a contract basis?
Now that you have a better idea of what skills to look for in a data scientist, you're probably wondering if it's worth the investment. Let's take a look at the costs associated with hiring one on a contract basis.
The good news is there are options when it comes to how you want to hire a data scientist. As mentioned above, many companies outsource their data science work to agencies or freelancers working on their own time. A contract-based agreement brings together two parties who agree on the scope of work and the services required within an agreed-upon timeline, whether it be for weeks or months.
If your business has never hired a data scientist before, this is often the most cost-effective option in terms of getting started and trying things out before making any long-term commitments. Contracted workers can also be great resources when you don’t need someone full-time or when your existing team needs extra bandwidth during busy periods—for example, if you’re planning a major marketing campaign and need help with data analysis after launch.
The price tag for hiring a freelance data scientist can vary greatly, depending on factors like experience level and specialized knowledge (i.e., how well they know Python). Figure somewhere between $50/hr and $100/hr as ballpark numbers based on our research.
How Long Does It Take To Hire An Experienced Data Scientist?
When hiring a data scientist, it is important to keep in mind that the top talent is not easy to find. The market will tell you that there are more than 150,000 people with the "data scientist" job title and that there are thousands of new data scientists entering the workforce each year.
As an employer considering hiring a data scientist, it is important to realize that these figures do not paint an accurate picture of the data science landscape. True data scientists — those with advanced degrees in quantitative disciplines, strong coding skills, and experience working with large-scale datasets — are very few in number. The average job posting stays active for 20 - 52 days before being filled. The more specialized the position, the longer it will take to fill.
Summary - What is the cost of hiring a data scientist?
The cost of a data scientist's salary ranges from $90,000 to $250,000 per year.
While the cost of a data scientist is likely to be high, it's worth it for most companies if the data scientist can help generate revenue.
Companies that want to hire a data scientist but don't have the budget can look at smaller startups or community colleges where they might find a lower-cost option.
You can also hire an independent contractor who works on projects as needed and is paid based on the job.
If you're hiring an experienced data scientist, you need to be prepared to pay as much as a six-figure salary. The most experienced data scientists tend to come with a price tag of over $150k and can be even more expensive if they have specialized skills (like machine learning expertise).
The good news is that there are plenty of experienced data scientists on the market, so you'll have options when it comes to finding someone who fits your budget. Also, having an experienced data scientist on your team means that they'll be able to provide value right away without needing as much training as someone who just finished grad school or boot camp. Definitely something to keep in mind!