Expansion in data analytics expected to continue in 2021

Throughout the pandemic our research has demonstrated that the effects of coronavirus have varied depending on business activity. On the one hand the pandemic has boosted activity in the food retail and fast food areas but on the other hand it has resulted in a significant loss of trade for non-food retailers and pubs and restaurants. 

Another growth area of work is data analytics and our 2020 business intelligence and data engineering study with a group of 20 mainly large private sector firms, employing 325,000 staff in total, showed an expansion in staff numbers. 

In total 67% reported growth in data analytics staff numbers in 2020 and the same proportion expect the number of such staff they employ to grow further in 2021. One company said that data analytics roles will form part of its plans to restructure following the financial impact of the coronavirus pandemic. 

Recruitment and retention 

Data analytics roles face both recruitment and retention issues, with recruitment problems being more significant than retention. As the chart shows, three-quarters report recruitment as being either ‘fairly difficult’ or ‘very difficult’, whereas half report retention difficulties. Employers also report that retention pressures eased somewhat in 2020 in comparison to 2019.  

Pay levels 

Greater demand for positions inevitably has an impact on pay, with pressure on employers to raise salaries. Our study shows that the median salary for Data Analysts is £27,500 when they start out, but this increases to a median of £42,445 as they gain experience and progress in the role. Data Scientists are typically slightly more senior, and salaries here start at £43,500 and again rise with experience, reaching around £65,000. Data Architects meanwhile can command salaries at the £70,000 mark. Bonuses are a common benefit for data analytics roles. Just under half of the sample are eligible for a company bonus and just under a third are eligible for an individual bonus.  

If you need help benchmarking the salary of your data scientists, data engineers, data analysts or data managers then get in touch today to organise a call with one of our consultants. Prices start from £175+VAT per job. 

IDR offer a broad range of solutions to aid you in making informed decisions on pay and reward. Our team are trained in listening to your requirements and tailoring an approach that best fits your business and budget. Topic areas include: 

• Salary and benefit benchmarking 
• Job evaluation 
• Grading design 
• Evidence and research to help you meet your HR strategy goals 
• Equality pay gap reporting and strategies for identifying and reducing gaps 
• Annual pay award data sets