Why 2023 Will Be the Year of Data Scientists
The hottest talent pool in 2023: Data scientists
As we head into 2023, one of the most coveted talent pools will be data scientists as their skillset will become more valuable and vital for organizations across the board, says Kareem Bakr, managing director of Phaidon International.
Throughout 2022, hiring in the technology sector outperformed many other sectors that were impacted by the post-pandemic shift, the Great Resignation, and varied economic factors. In the coming year, expect tech hiring to continue to flourish, specifically within data science.
As we rely more on data and technology and new industries emerging, the value and demand for data science-related roles will increase. Data science hiring is poised to dominate over the next year as candidates with the skills will be entering a favorable, skills-driven market and is one of the most industry-agnostic pools of talent as their expertise is needed across industries like pharma, finance, and supply chain. This will open more opportunities for prospective candidates and earn them potentially higher offer packages.
Candidates Have the Edge
The data science industry is still evolving as areas like AI and machine learning are taking off, and new technologies like blockchain are emerging. As a result, the definition of a data scientist continues to change, and companies need to dedicate teams to entirely new skills in areas like risk management. It is hard to have years of experience in an industry that only recently emerged, particularly for senior roles. Coupled with the changing function of the position, finding readily available talent isn’t easy.
Tech companies will continue looking for secure candidates to fill their data scientist roles in 2023. The niche skills data scientists possess and the current skillset-driven market creates competition to find qualified candidates within the tech space. This means employees currently have the upper hand.
Giving candidates another leg up is that the typical knowledge and skills that people currently in these positions have, like computer science, statistical modeling, and AI and machine learning, transfer across the board. As a result, you can place a data scientist from any background into a fintech, insurance company, etc., and they’ll fit right into the role. This continues to benefit the market for these roles because as other industries outside tech start to covet data science-related roles, this opens the door for opportunities.
The tight labor market and the seamless transfer of skills tip the scale in favor of candidates so that they can negotiate for higher compensation packages, better benefits, and more flexibility.
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Outside Tech Industry Demand
Organizations rely heavily on their business’s data components, which will take an exponential leap forward in 2023. As companies lean more into technologies and integrate them within their business, as we’ve seen with investment in the cloud, this will make data roles universally business-critical, and we will see growth outside traditional tech roles.
Data scientists are needed for more than just functions like monitoring trends and developing insights because as organizations store more data on cloud platforms and implement new technologies, it leaves more points where businesses can be exposed to breaches and added regulatory concerns. Hackers have been on the rise over the past few years, and those that haven’t invested in data science talent to handle their data privacy and security to keep internal operating systems up and running have lost millions. In addition, those that do not invest in strong risk management systems, technology, and governance controls will not succeed.
As a result, niche verticals will now also be looking to hire for roles that a data scientist can fill to manage their data across a range of industries, including supply chain, life sciences, hedge funds, fintech, financial services, and insurance – industries that previously were not as aggressively hiring for these types of roles. As a result, this will open a sea of new positions for data scientists and drive up the price to acquire them.
As other industries look to secure this talent, they will pick from the same talent pool with more players. Expect fiercer competition and a drastic emphasis on making stronger offers to land candidates.
Emerging Industries
Emerging industries like crypto and Web3 are yet another area that will drive up the value of data scientists as the nature of these businesses makes it necessary to have them on staff.
Expect data scientists to fill new roles in places like crypto. Organizations will look to bring on data scientists to fill non-stop flowing roles in risk management, control, and governance as the market becomes more regulated. The risk and regulation aspect of a business is an area many departments lack in tech and data staff as they have been focused on hiring for growth areas rather than risk.
Across the board, there has been an emphasis on hiring people with a background in data, driven by the importance of regulatory and data privacy concerns, so we’ll see companies look to hire people across all levels with this knowledge. Once again, this will drive competition and increase the salary and work perks/benefits package necessary to land this talent.
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All Signs Point to Go
If you’re a top-tier data scientist with desirable skills and experience, you’re in luck. The tech industry has already proven resilient in hiring top-level talent, but the opportunities don’t stop there. New industries in different verticals will ramp up hiring efforts to acquire top talent, and emerging technologies will drive even greater interest in hiring and demand. Companies need to offer more – an increased bonus, a relocation package, myriad benefits, or upping compensation – to land the best.
The number of candidates in the talent pool isn’t going to shift drastically, meaning the power shift will favor employees. With all the stars aligned, data science hiring will be one of the hottest markets for 2023.
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