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 startup Runway’s second annual AI Film Festival showcased movies that incorporated AI tech in some fashion, from backgrounds to animations.

At the AI Film Festival, humanity triumphed over tech

Rachel Coldicutt is the founder of Careful Industries, which researches the social impact technology has on society.

Women in AI: Rachel Coldicutt researches how technology impacts society

SAP Chief Sustainability Officer Sophia Mendelsohn wants to incentivize companies to be green because it’s profitable, not just because it’s right.

SAP’s chief sustainability officer isn’t interested in getting your company to do the right thing

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI considers allowing AI porn

Garena is quietly developing new India-themed games even though Free Fire, its biggest title, has still not made a comeback to the country.

Garena is quietly making India-themed games even as Free Fire’s relaunch remains doubtful

The U.S.’ NHTSA has opened a fourth investigation into the Fisker Ocean SUV, spurred by multiple claims of “inadvertent Automatic Emergency Braking.”

Fisker Ocean faces fourth federal safety probe

CoreWeave has formally opened an office in London that will serve as its European headquarters and home to two new data centers.

CoreWeave, a $19B AI compute provider, opens European HQ in London with plans for 2 UK data centers

The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products

AI chip startup DEEPX secures $80M Series C at a $529M valuation 

A dust-up between Evolve Bank & Trust, Mercury and Synapse has led TabaPay to abandon its acquisition plans of troubled banking-as-a-service startup Synapse.

Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

The Twitter for Android client was “a demo app that Google had created and gave to us,” says Particle co-founder and ex-Twitter employee Sara Beykpour.

Google built some of the first social apps for Android, including Twitter and others

WhatsApp is updating its mobile apps for a fresh and more streamlined look, while also introducing a new “darker dark mode,” the company announced on Thursday. The messaging app says…

WhatsApp’s latest update streamlines navigation and adds a ‘darker dark mode’

Plinky lets you solve the problem of saving and organizing links from anywhere with a focus on simplicity and customization.

Plinky is an app for you to collect and organize links easily