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

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

The keynote kicks off at 10 a.m. PT on Tuesday and will offer glimpses into the latest versions of Android, Wear OS and Android TV.

Google I/O 2024: How to watch

For cancer patients, medicines administered in clinical trials can help save or extend lives. But despite thousands of trials in the United States each year, only 3% to 5% of…

Triomics raises $15M Series A to automate cancer clinical trials matching

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Tap, tap.…

Tesla drives Luminar lidar sales and Motional pauses robotaxi plans

The newly announced “Public Content Policy” will now join Reddit’s existing privacy policy and content policy to guide how Reddit’s data is being accessed and used by commercial entities and…

Reddit locks down its public data in new content policy, says use now requires a contract

Eva Ho plans to step away from her position as general partner at Fika Ventures, the Los Angeles-based seed firm she co-founded in 2016. Fika told LPs of Ho’s intention…

Fika Ventures co-founder Eva Ho will step back from the firm after its current fund is deployed

In a post on Werner Vogels’ personal blog, he details Distill, an open-source app he built to transcribe and summarize conference calls.

Amazon’s CTO built a meeting-summarizing app for some reason

Paris-based Mistral AI, a startup working on open source large language models — the building block for generative AI services — has been raising money at a $6 billion valuation,…

Sources: Mistral AI raising at a $6B valuation, SoftBank ‘not in’ but DST is

You can expect plenty of AI, but probably not a lot of hardware.

Google I/O 2024: What to expect

Dating apps and other social friend-finders are being put on notice: Dating app giant Bumble is looking to make more acquisitions.

Bumble says it’s looking to M&A to drive growth

When Class founder Michael Chasen was in college, he and a buddy came up with the idea for Blackboard, an online classroom organizational tool. His original company was acquired for…

Blackboard founder transforms Zoom add-on designed for teachers into business tool

Groww, an Indian investment app, has become one of the first startups from the country to shift its domicile back home.

Groww joins the first wave of Indian startups moving domiciles back home from US

Technology giant Dell notified customers on Thursday that it experienced a data breach involving customers’ names and physical addresses. In an email seen by TechCrunch and shared by several people…

Dell discloses data breach of customers’ physical addresses

Featured Article

Fairgen ‘boosts’ survey results using synthetic data and AI-generated responses

The Israeli startup has raised $5.5M for its platform that uses “statistical AI” to generate synthetic data that it says is as good as the real thing.

8 hours ago
Fairgen ‘boosts’ survey results using synthetic data and AI-generated responses

Hydrow, the at-home rowing machine maker, announced Thursday that it has acquired a majority stake in Speede Fitness, the company behind the AI-enabled strength training machine. The rowing startup also…

Rowing startup Hydrow acquires a majority stake in Speede Fitness as their CEO steps down

Call centers are embracing automation. There’s debate as to whether that’s a good thing, but it’s happening — and quite possibly accelerating. According to research firm TechSci Research, the global…

Retell AI lets companies build ‘voice agents’ to answer phone calls

TikTok is starting to automatically label AI-generated content that was made on other platforms, the company announced on Thursday. With this change, if a creator posts content on TikTok that…

TikTok will automatically label AI-generated content created on platforms like DALL·E 3

India’s mobile payments regulator is likely to extend the deadline for imposing market share caps on the popular UPI (unified payments interface) payments rail by one to two years, sources…

India likely to delay UPI market caps in win for PhonePe-Google Pay duopoly

Line Man Wongnai, an on-demand food delivery service in Thailand, is considering an initial public offering on a Thai exchange or the U.S. in 2025.

Thai food delivery app Line Man Wongnai weighs IPO in Thailand, US in 2025

Ever wonder why conversational AI like ChatGPT says “Sorry, I can’t do that” or some other polite refusal? OpenAI is offering a limited look at the reasoning behind its own…

OpenAI offers a peek behind the curtain of its AI’s secret instructions

The federal government agency responsible for granting patents and trademarks is alerting thousands of filers whose private addresses were exposed following a second data spill in as many years. The…

US Patent and Trademark Office confirms another leak of filers’ address data

As part of an investigation into people involved in the pro-independence movement in Catalonia, the Spanish police obtained information from the encrypted services Wire and Proton, which helped the authorities…

Encrypted services Apple, Proton and Wire helped Spanish police identify activist

Match Group, the company that owns several dating apps, including Tinder and Hinge, released its first-quarter earnings report on Tuesday, which shows that Tinder’s paying user base has decreased for…

Match looks to Hinge as Tinder fails

Private social networking is making a comeback. Gratitude Plus, a startup that aims to shift social media in a more positive direction, is expanding its wellness-focused, personal reflections journal to…

Gratitude Plus makes social networking positive, private and personal

With venture totals slipping year-over-year in key markets like the United States, and concern that venture firms themselves are struggling to raise more capital, founders might be worried. After all,…

Can AI help founders fundraise more quickly and easily?

Google has found a way to bring a variation of its clever “Circle to Search” gesture to iPhone users. The new interaction, launched in January, allows Android users to search…

Google brings a variation on ‘Circle to Search’ to iPhone users