Rising demand for big data analytics skills triggers wage debate

First Institute of Analytics Professionals of Australia report into skills and salary around data analytics shows data scientists must stay close to the needs of the business if they wish to retain their high-paying roles

Strong demand for data analytics skills is pushing up wages for qualified professionals and turning big data into a big pay for data analysts.

This was the key finding of the inaugural 2013 Skills and Salary Survey Report published by the Institute of Analytics Professionals of Australia (IAPA), which showed the median salary for an analytics professional was almost twice the median Australian full-time salary.

But the good news also came with a warning that data analysts must stay close to the needs of the business they serve if they wish to retain their high-paying roles into the future.

According to IAPA’ chairman, and director for insight solutions at Deloitte, Doug Campbell, some organisations are already responding to the wages pressure by setting up data analytics teams in lower-wage economies.

“The challenge for the analytics professionals in Australia, to maintain that high monetary reward, is they have to stay close to the value,” Campbell said. “And that is not the actual algorithm, it is the operationalisation of the algorithm, and getting the outputs into business processes and transactional systems.”

Campbell said the best analysts, and those who progressed from practice to general management, were those that could work with the business to determine what analytics were required to make or save money.

“The advice to our membership is, to avoid the labour arbitrage situation, you’ve really got to get close to the business process, and that is the way to differentiate,” Campbell said.

Campbell said education institutions, including Deakin University, the University of Technology Sydney and the University of South Australia, were responding to the demand for analytics professionals by putting on new courses.

The IAPA survey investigated the attitudes, activities and remuneration of Australia’s data analytics professionals, and found a clear trend that demand for analytics skills was driving wages upwards.

“The majority of people who responded have had pay rises over the last few years, whereas in other roles that has been harder to come by,” Campbell said. “The salary, when compared to the average Australian, is obviously significant.”

The rising demand for analytics professionals was reflected in IAPA’s membership, which has grown to more than 3500 members in Australia since its formation in 2006. Campbell suggested a big driver in jobs and salary growth has been the increased pervasiveness of digital technologies across a broader range of organisations.

“The barriers to commence have slipped away due to digital, so digital is the catalyst for the need for a lot of analytics skills across many use cases and many domains,” Campbell said. “And digital leaves a huge data trail that can be analysed to understand behaviours within the digital channel, and across channels.”

Big data analytics: The new black magic of marketing?
Using big data analytics to power customer lifetime value
What makes a data scientist?

Campbell said there was also a trend for professionals to move from traditional analytics employers such as banks to a broader range of organisations, including pure digital organisations.

“It is interesting to see people being pulled from well-paid tier one banks into less well-known digital organisations, but obviously it is a career challenge for those people to work in a digital domain,” Campbell said. “Because if you have skills in conducting analysis in the digital environment you are going to be even more in demand in the future.”

The IAPA survey will be repeated in the coming years to provide annual comparisons.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Is your customer experience program suffering bright shiny object syndrome?

You may have heard of ‘bright shiny object syndrome’. The term is used to describe new initiatives undertaken by organisations that either lack a strategic approach, or suffer from a failure to effectively implement.

Leveraging technology to stand out in the sea of sameness

The technology I'm talking about here is data and marketing automation. Current digital marketing methodology, much as it is practiced at Bluewolf, dictates the need for a strategy that does four things: Finds the right audience, uses the right channel, delivers the right content, and does all of that at the right time.

Eric Berridge

CEO and co-founder of Bluewolf, an IBM Company

Lead Management is very important part of the process. For anyone running Facebook Lead Ads I would recommend using this service.Get your...

Dirk Lo

How this fintech startup is improving content marketing and lead generation

Read more

I am agreeing with Mr. Tyron Hayes that a measured test-and-learn approach could be missing opportunities to not only better engage custo...

rush essay reviews

CMO interview: How Curtin University’s marketing chief is using test and learn to cope with complexity

Read more

Excellent!

Dr Sadasivan,US

Shakespeare shows data and creativity aren’t Montagues and Capulets

Read more

Great article! Agreed with all... Matthew Lerner, Deeps De Silva... When a company has a great product that solves customers needs, a gre...

James Tyler

Why marketers are embracing growth hacking techniques

Read more

Very good article, Social media analytics helps in problem identification. They can serve as an early warning system for negative custome...

BizVinu

Four ways to use social media to boost customer loyalty

Read more

Latest Podcast

More podcasts

Sign in