Startups

How to recruit data scientists without paying top dollar

Comment

Female scientists working on project data on whiteboard in research lab
Image Credits: Thomas Barwick (opens in a new window) / Getty Images

Michael Li

Contributor

Tianhui Michael Li is the founder of The Data Incubator, an eight-week fellowship to help Ph.D.s and postdocs transition from academia into industry. It was acquired by Pragmatic Institute. Previously, he headed monetization data science at Foursquare and has worked at Google, Andreessen Horowitz, J.P. Morgan, and D.E. Shaw.

More posts from Michael Li

When it comes to building a data science team, many companies fail at the first step — creating a job posting. These mistakes have been amplified in the age of COVID-19.

The increasing demand for AI and data science experts, driven in part by the pandemic’s economic impact, is showing no sign of abating. Many employers are failing to identify viable job candidates, much less interviewing or hiring them.

What’s the biggest obstacle holding them back? In our experience, it is often a poorly drafted job posting. And with the pandemic completely stopping all in-person recruiting events, hiring success hinges on an effective job rec. Previously tolerable mistakes are now fatal.

At The Data Incubator, a data science training and placement firm, we’ve helped hundreds of companies successfully hire data science teams. Honestly, it pains me to see amazing companies undersell themselves in this area.

Companies inevitably gravitate toward the same generic buzzwords, promoting themselves as “cutting edge,” “creative,” “collaborative,” “data driven,” “passionate” or “insightful” (just peruse Indeed for examples of these lackluster postings). Or they delve into industry jargon, which may be lost on candidates who are not familiar with the industry.

To streamline the writing process, we recommend that clients break down their competitive advantage into three buckets: compensation, mission and tech. Only by understanding where their strength lies can they successfully market their job openings.

Compensation

Compensation is an important component of making a position competitive. Managers certainly need to fight to ensure their remuneration range is appropriate for their data science roles. However, budget constraints are difficult to overcome, especially given the ability of tech and finance to pay top dollar for these sought-after skills. How to combat this when you don’t have the same budget? Consider listing compensation in job ads.

If you’re one of (the majority of) employers who cannot afford to compete on salary, this will help job seekers understand what to expect. Neither you, nor a potential candidate, wants to spend hours interviewing just to discover that it would have never worked out because of compensation. Save yourself the time and frustration by listing remuneration upfront.

What if you are one of the few employers able to pay major-league salaries? Congratulations, but don’t throw away your hard-won budget! Companies develop reputations for compensation. Unless you are one of the select firms with a reputation for paying top dollar, you will need to signal that to top talent. Otherwise, strong candidates may assume the remuneration is low and not apply, defeating the purpose of paying a high salary in the first place.

Obviously, listing salaries is controversial and there are plenty of reasons why employers are weary of listing salary ranges. However, a recent survey by SHRM found that 70% of professionals want to hear about salary upfront and Glassdoor.com reports that salary is the No. 1 consideration for 67% of job seekers. With all these benefits, employers should seriously consider being more upfront and transparent about what they are able to pay, if only to save themselves time and frustration.

Mission

In the COVID-19 workplace, employees are finding themselves increasingly isolated. With work from home poised to stay even after the virus has dissipated, the risk of isolation will continue. Companies need to double down on articulating their mission and galvanizing employees around that. This doesn’t just start with employment but the very first step of the hiring process: the job posting. Emphasizing mission in the job posting will attract employees.

Indeed, purpose-oriented employees are 64% more fulfilled and Deloitte reports they have 40% higher levels of retention. Selecting the right mission-aligned candidate can be more impactful than trying to motivate ones who are not aligned with the mission.

Case in point when a hiring manager in life sciences asked me to look over her job rec for a data science position she was offering. She had been trying to hire for months without much success. The initial job position was written by HR. It was short on detail but replete with antiseptic platitudes about how the position was a “unique opportunity to change lives” and the “diverse and inclusive” work environment provided “professional growth opportunities,” “outstanding benefits,” “unique resources,” “intellectual excitement,” and ample opportunities for “creative problem-solving.”

Data is the world’s most valuable (and vulnerable) resource

Those are all wonderful qualities in any workplace, but they are vague and overused. We are all accustomed to skimming such corporate bromides, leading to a double loss: The employer missed a valuable opportunity to pitch itself and potential applicants missed the chance to learn about a truly amazing opportunity.

Working together, we revised the draft, adding in a brief description about the fascinating science behind the work and the potential impact on hundreds of millions of patients worldwide. We expanded the sections on machine learning, advertising the unique datasets to which candidates would have access. Most of all, we eliminated the corporate clichés and scientific jargon to make room for takeaways that appeal to data scientists. The end result was a pithier job rec that received far more qualified interest and resulted in a hire.

Tech stack

Data scientists, like many other technical people, are driven by the desire to improve their skills. Indeed, most think of themselves as craftspersons (online marketplace Etsy’s engineering blog is appropriately entitled “Code as Craft”). Employers will attract talent by highlighting the skills candidates will develop while working with industry-leading tools and proprietary data.

Data scientists are propelled not just by idle trend chasing. Developing skills in the right technologies can be lucrative. Candidates are mindful of their next hire and want to learn transferable skills widely valued in the industry. They will be far more likely to take a job that uses Tensorflow, a popular open-source deep-learning library from Google, than less popular competing tools.

Incidentally, ZipRecruiter reports that the national average for jobs that require Tensorflow pay $29,000 more than generic data science positions. It is important to recognize that the choice of technology stack directly impacts how competitive your job recs can be. And if you have adopted the “must-know” tool of the year, be sure to advertise it.

Open source plays another huge role in attracting job candidates. The data science ecosystem is built largely around open-source tools. Data scientists don’t want their productivity tied to an expensive software license and inflexible closed tools that they cannot easily tweak. The best companies don’t just use open source, but share their technology and tooling as open-source packages (like Google did with Tensorflow). Data scientists are attracted to these companies for altruistic and selfish reasons.

Altruistically, data scientists genuinely want to give back to the community that has enabled their entire field. Selfishly, open source represents one of the few ways they can highlight their skills while working for the company, given that the majority of their code and analysis will be hidden. Whatever the motivation, top data science talent will seek out companies that have a strong open-source culture.

Companies should emphasize (in job recs) their contributions to open source and the opportunity for candidates to contribute to open-source projects. They should also go one step further and actively maintain their Github page to showcase their open-source contributions and demonstrate their commitment to the community.

In our experience working with hiring managers, they are almost all worried that they do not have the caché of a Google, or the competitive compensation of a well-heeled hedge fund. But as we have seen, mission and tech can be as powerful a motivator as compensation. Providing details (particularly falsifiable facts) rather than weaselly platitudes will go a long way in demonstrating the strengths of your job offering.

Oftentimes, HR professionals do not feel comfortable articulating the technology stack of the company (and sometimes even the mission as well, especially if the company is in a technical space). HR professionals need to collaborate with data science managers to craft job descriptions that speak to a data science audience. The increasingly pivotal role of job postings will not abate with the virus. The decentralized workplace is here to stay and with it, virtualized hiring and the central importance of a strong job rec.

Companies need to master job recs to stay ahead of the increasingly fierce competition for global data talent.

How and when to hire your first product manager

More TechCrunch

AI models are always surprising us, not just in what they can do, but what they can’t, and why. An interesting new behavior is both superficial and revealing about these…

AI models have favorite numbers, because they think they’re people

On Friday, Pal Kovacs was listening to the long-awaited new album from rock and metal giants Bring Me The Horizon when he noticed a strange sound at the end of…

Rock band’s hidden hacking-themed website gets hacked

Jan Leike, a leading AI researcher who earlier this month resigned from OpenAI before publicly criticizing the company’s approach to AI safety, has joined OpenAI rival Anthropic to lead a…

Anthropic hires former OpenAI safety lead to head up new team

Welcome to TechCrunch Fintech! This week, we’re looking at the long-term implications of Synapse’s bankruptcy on the fintech sector, Majority’s impressive ARR milestone, and more!  To get a roundup of…

The demise of BaaS fintech Synapse could derail the funding prospects for other startups in the space

YouTube’s free Playables don’t directly challenge the app store model or break Apple’s rules. However, they do compete with the App Store’s free games.

YouTube’s free games catalog ‘Playables’ rolls out to all users

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the first months of 2024. Smaller-sized…

4 hours ago
A comprehensive list of 2024 tech layoffs

OpenAI has formed a new committee to oversee “critical” safety and security decisions related to the company’s projects and operations. But, in a move that’s sure to raise the ire…

OpenAI’s new safety committee is made up of all insiders

Time is running out for tech enthusiasts and entrepreneurs to secure their early-bird tickets for TechCrunch Disrupt 2024! With only four days left until the May 31 deadline, now is…

Early bird gets the savings — 4 days left for Disrupt sale

AI may not be up to the task of replacing Google Search just yet, but it can be useful in more specific contexts — including handling the drudgery that comes…

Skej’s AI meeting scheduling assistant works like adding an EA to your email

Faircado has built a browser extension that suggests pre-owned alternatives for ecommerce listings.

Faircado raises $3M to nudge people to buy pre-owned goods

Tumblr, the blogging site acquired twice, is launching its “Communities” feature in open beta, the Tumblr Labs division has announced. The feature offers a dedicated space for users to connect…

Tumblr launches its semi-private Communities in open beta

Remittances from workers in the U.S. to their families and friends in Latin America amounted to $155 billion in 2023. With such a huge opportunity, banks, money transfer companies, retailers,…

Félix Pago raises $15.5 million to help Latino workers send money home via WhatsApp

Google said today it’s adding new AI-powered features such as a writing assistant and a wallpaper creator and providing easy access to Gemini chatbot to its Chromebook Plus line of…

Google adds AI-powered features to Chromebook

The dynamic duo behind the Grammy Award–winning music group the Chainsmokers, Alex Pall and Drew Taggart, are set to bring their entrepreneurial expertise to TechCrunch Disrupt 2024. Known for their…

The Chainsmokers light up Disrupt 2024

The deal will give LumApps a big nest egg to make acquisitions and scale its business.

LumApps, the French ‘intranet super app,’ sells majority stake to Bridgepoint in a $650M deal

Featured Article

More neobanks are becoming mobile networks — and Nubank wants a piece of the action

Nubank is taking its first tentative steps into the mobile network realm, as the NYSE-traded Brazilian neobank rolls out an eSIM (embedded SIM) service for travelers. The service will give customers access to 10GB of free roaming internet in more than 40 countries without having to switch out their own existing physical SIM card or…

11 hours ago
More neobanks are becoming mobile networks — and Nubank wants a piece of the action

Infra.Market, an Indian startup that helps construction and real estate firms procure materials, has raised $50M from MARS Unicorn Fund.

MARS doubles down on India’s Infra.Market with new $50M investment

Small operations can lose customers by not offering financing, something the Berlin-based startup wants to change.

Cloover wants to speed solar adoption by helping installers finance new sales

India’s Adani Group is in discussions to venture into digital payments and e-commerce, according to a report.

Adani looks to battle Reliance, Walmart in India’s e-commerce, payments race, report says

Ledger, a French startup mostly known for its secure crypto hardware wallets, has started shipping new wallets nearly 18 months after announcing the latest Ledger Stax devices. The updated wallet…

Ledger starts shipping its high-end hardware crypto wallet

A data protection taskforce that’s spent over a year considering how the European Union’s data protection rulebook applies to OpenAI’s viral chatbot, ChatGPT, reported preliminary conclusions Friday. The top-line takeaway…

EU’s ChatGPT taskforce offers first look at detangling the AI chatbot’s privacy compliance

Here’s a shoutout to LatAm early-stage startup founders! We want YOU to apply for the Startup Battlefield 200 at TechCrunch Disrupt 2024. But you’d better hurry — time is running…

LatAm startups: Apply to Startup Battlefield 200

The countdown to early-bird savings for TechCrunch Disrupt, taking place October 28–30 in San Francisco, continues. You have just five days left to save up to $800 on the price…

5 days left to get your early-bird Disrupt passes

Venture investment into Spanish startups also held up quite well, with €2.2 billion raised across some 850 funding rounds.

Spanish startups reached €100 billion in aggregate value last year

Featured Article

Onyx Motorbikes was in trouble — and then its 37-year-old owner died

James Khatiblou, the owner and CEO of Onyx Motorbikes, was watching his e-bike startup fall apart.  Onyx was being evicted from its warehouse in El Segundo, near Los Angeles. The company’s unpaid bills were stacking up. Its chief operating officer had abruptly resigned. A shipment of around 100 CTY2 dirt bikes from Chinese supplier Suzhou…

1 day ago
Onyx Motorbikes was in trouble — and then its 37-year-old owner died

Featured Article

Iyo thinks its GenAI earbuds can succeed where Humane and Rabbit stumbled

Iyo represents a third form factor in the push to deliver standalone generative AI devices: Bluetooth earbuds.

1 day ago
Iyo thinks its GenAI earbuds can succeed where Humane and Rabbit stumbled

Arati Prabhakar, profiled as part of TechCrunch’s Women in AI series, is director of the White House Office of Science and Technology Policy.

Women in AI: Arati Prabhakar thinks it’s crucial to get AI ‘right’

AniML, the French startup behind a new 3D capture app called Doly, wants to create the PhotoRoom of product videos, sort of. If you’re selling sneakers on an online marketplace…

Doly lets you generate 3D product videos from your iPhone

Elon Musk’s AI startup, xAI, has raised $6 billion in a new funding round, it said today, as Musk shores up capital to aggressively compete with rivals including OpenAI, Microsoft,…

Elon Musk’s xAI raises $6B from Valor, a16z, and Sequoia

Indian startup Zypp Electric plans to use fresh investment from Japanese oil and energy conglomerate ENEOS to take its EV rental service into Southeast Asia early next year, TechCrunch has…

Indian EV startup Zypp Electric secures backing to fund expansion to Southeast Asia