It’s Here
Those who have been following my blog regularly have read my observations about how the quantitative market has remained relatively unscathed by this current recession. I am unhappy to report that this is no longer the case. As the recession has deepened, our profession is beginning to feel its impact.
It’s not news that the impact has been broad based, with few industries or regions spared. Overall unemployment now stands at 7.6%, up significantly from 5% last summer. It appears that the college-educated are also feeling the pinch – with a current unemployment rate of 3.8% and projections from labor economists that say it will well exceed 4% before we see a recovery.
Any good news, you ask? Absolutely! In the last four weeks, I have had several candidates who have had multiple opportunities tendered, and their prospective employers even bid up their offers! This supports my belief that quantitative candidates will always have options, even in a depressed employment market like the current one.
These particular candidates had very strong quantitative skills, were proficient SAS users, projected solid business acumen and had a positive attitude. In most cases, the candidates were fortunate in that they either didn’t own homes or didn’t require home purchase assistance. They were also very flexible geographically. While some of the qualifications that made them attractive candidates were a matter of circumstance, many are attainable through hard work, dedication, continuing education and perseverance.
Here are a few general observations, as well as how the recession is specifically affecting the quantitative job market:
· Hiring freezes and layoffs are widespread. The good news for the hard-to-replace quantitative professional is that open positions are usually eliminated first, before any layoffs are implemented. Unfortunately, I am now seeing more staffers getting pink slips in second or third round layoffs. In terms of hiring, with the current level of economic uncertainty, very few organizations have the courage or ability to increase their headcount, even if they have a need.
· Raises and bonuses are infrequent. In the last several weeks, many companies have announced salary freezes and are drastically reducing or eliminating bonuses. Though bonuses may still abound on Wall Street, the rest of us will be holding tight for a while. I have heard that, in some cases, employees have even been asked to take pay cuts, usually from 5-10%, and I know of one situation that involved a 20% salary reduction.
· Relocation requiring home sales has become difficult. The bursting of the real estate bubble and the tightening mortgage market has significantly increased the lead-time required to sell homes in many areas of the country. Companies today are rarely willing to provide a house purchase parachute because they are already shouldering a heavy burden of unsold homes stemming from 2008 relocations. Individuals who must relocate for new jobs are often faced with the prospect of substantial losses, especially if they purchased their homes in the inflated years just prior to the real estate bust.
· The ability to negotiate with a prospective employer has been greatly reduced. Now is not the time to casually explore your options. Recognize that the recession is affecting everyone, individuals and corporations alike, and negotiate with respect for the current economic situation.
No one knows for sure how long the recession will last or what its ultimate fallout will be, but my sense is that we will see the market begin to strengthen at some point before this time next year. I have weathered many a recession in my career (but only because I started so young!), including those of ’82, ’87, ’91 and ’01. The single common thread through every downturn, large or small, is that they all came to an end, and it has been my experience that the faster the decline, the more vibrant the recovery.
We are here to help. Stay tuned for more information on how you can pump up your resume, boost your marketability and become an indispensible entity within the quantitative market. Please feel free to contact me with any questions or comments. Helping you navigate the choppy waters of the marketplace is our job, in good times and bad.
Thanks for keeping in touch,
Linda Burtch
Managing Director
Email: lburtch@smithhanley.com
Smith Hanley Associates LLC
Thursday, February 19, 2009
Monday, January 12, 2009
Family Dinner Conversation
by Linda Burtch, Managing Director, Smith Hanley Associates, Chicago Region
Just a few nights ago, during our family dinner, the topic of the eighth-grade social order arose. It seems my 13-year-old twins, Jay and Becky, have a pretty clear understanding of where they (and all of their classmates) stand in the pecking order.
Becky said she resides somewhere in the middle —Abercrombie jeans and Ugg boots are clear plusses, but being in the advanced math group lowers her overall score. Jay said he’s on “the lower end” and Becky did nothing to dispute this or buttress her twin.
Jay has been known as a “math geek” since second grade. He is a terrible dresser, combs his hair once a month (whether it needs it or not), plays competitive chess and piano for the jazz band, is two grades ahead in math (where he is the top student, definitely a social blunder), and programs his calculator for fun. Apparently all that’s keeping him from plummeting to the very bottom of the social heap are decent soccer skills and some talent in track.
Fortunately, I was armed with information from a timely Wall Street Journal piece called Doing the Math to Find Good Jobs, published the very day of our family discussion. The Journal reported that the best job in the U.S. is … (drum roll, please) … mathematician! In even more good news, two closely related fields came in second and third – actuary and statistician. These standings are based in part on favorable working conditions – an indoor environment free of toxic fumes, with no heavy lifting required. The quantitative sciences also score high in terms of pay, low stress levels (really?) and a good work-life balance.
I was able to reassure my “math geek” son that though it may seem like he’s on the bottom social rung of eighth grade, with hard work and a little luck, his skills and talents will give him a quick elevator ride to the top of the job stratum as an adult. As Bill Gates once said: “Be nice to nerds. Chances are you’ll end up working for one.” He should know.
Let this reassure you as well, my analytical friends, and revel in your career choice!
My best wishes to you and yours for a healthy and prosperous 2009 — Linda
Just a few nights ago, during our family dinner, the topic of the eighth-grade social order arose. It seems my 13-year-old twins, Jay and Becky, have a pretty clear understanding of where they (and all of their classmates) stand in the pecking order.
Becky said she resides somewhere in the middle —Abercrombie jeans and Ugg boots are clear plusses, but being in the advanced math group lowers her overall score. Jay said he’s on “the lower end” and Becky did nothing to dispute this or buttress her twin.
Jay has been known as a “math geek” since second grade. He is a terrible dresser, combs his hair once a month (whether it needs it or not), plays competitive chess and piano for the jazz band, is two grades ahead in math (where he is the top student, definitely a social blunder), and programs his calculator for fun. Apparently all that’s keeping him from plummeting to the very bottom of the social heap are decent soccer skills and some talent in track.
Fortunately, I was armed with information from a timely Wall Street Journal piece called Doing the Math to Find Good Jobs, published the very day of our family discussion. The Journal reported that the best job in the U.S. is … (drum roll, please) … mathematician! In even more good news, two closely related fields came in second and third – actuary and statistician. These standings are based in part on favorable working conditions – an indoor environment free of toxic fumes, with no heavy lifting required. The quantitative sciences also score high in terms of pay, low stress levels (really?) and a good work-life balance.
I was able to reassure my “math geek” son that though it may seem like he’s on the bottom social rung of eighth grade, with hard work and a little luck, his skills and talents will give him a quick elevator ride to the top of the job stratum as an adult. As Bill Gates once said: “Be nice to nerds. Chances are you’ll end up working for one.” He should know.
Let this reassure you as well, my analytical friends, and revel in your career choice!
My best wishes to you and yours for a healthy and prosperous 2009 — Linda
Wednesday, October 22, 2008
Statistical Analyst
Consulting company in Ohio is looking for a statistical analyst to provide customer insights for their clients by building predictive models and producing high level statistical analysis. At least 3 years of analysis required in a business setting using SAS to manipulate large data sets. Ability to determine business problems and clearly communicate results. PhD or MS in a quantitative field required. This fast paced work environment will afford you the opportunity to work on multiple projects. Salary between $60-85k. If interested in this opportunity, send your resume to ndarian@smithhanley.com. Reference 3026845
4Q 2008 job trends in marketing analytics
First of all, let me assert my firm belief that the only thing we have to fear is fear itself - nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. — Franklin D. Roosevelt
Many people assume that this famous quote from Roosevelt was about World War II. In fact, it was part of his first inaugural address in 1933 and was specifically meant to ease the country’s fears about the worsening economy. Since my last blog entry on the state of the job market for the quantitative business professional in July, there have been dramatic changes in the economic and business climate. It is rare these days that I have a conversation without being asked for my take on how these changes are affecting the current job market and the near-term prospects for job seekers in our industry.
Not surprisingly, the drumbeat of negative news about the economy resulting from the meltdown of the financial markets has many people on edge about the stability of their companies and the security of their jobs. At Smith Hanley, we have been paying close attention to every aspect of the current crisis — what I see happening in the quantitative job market is surprising, and should offer my audience relief and even confidence.
We are still seeing a healthy amount of hiring and new job openings. Last year was a record revenue year for the quantitative recruiting groups at Smith Hanley; and this year, even if we have a weaker fourth quarter, we will surpass last year’s numbers. Certainly, the overall unemployment rate has climbed rapidly from 5% this summer to a current rate of 6.1%; the weekly jobless reports are also grimmer, with the number of jobs lost in September nearing 150,000. In the panic of the moment, however, it is important to note that the unemployment rate for college educated professionals is still at very low 2.5% and I strongly believe that for analytics professionals, that number is lower still.
While it’s true that this recession is having a negative impact on employment in most disciplines, professionals with backgrounds in data analytics (including statisticians, econometricians, operations researchers, and mathematicians) are continuing to enjoy job security and employment opportunities. Albert Einstein once said: “Try not to become a man of success, but rather to become a man of value.” In uncertain economic times, the best advice we can give the men and women in our field to keep their jobs secure is to work hard and demonstrate to their employers the value they bring to table. As quantitative professionals, they are uniquely qualified to sift through the mountains of business data necessary to help management develop effective streamlining strategies, a vital tool in this economy. In this case, it is nice to be considered to be among “America’s most wanted”.
These are interesting times. In a news cycle full of gloom and doom, I am pleased to report that employment in analytics remains robust, and with no substantial layoffs or hiring freezes in sight. But in this volatile environment, things could be different next week – so stay in touch with your recruiter at Smith Hanley for the latest updates on the analytical employment market.
Linda Burtch
Managing Partner – Smith Hanley Associates
Many people assume that this famous quote from Roosevelt was about World War II. In fact, it was part of his first inaugural address in 1933 and was specifically meant to ease the country’s fears about the worsening economy. Since my last blog entry on the state of the job market for the quantitative business professional in July, there have been dramatic changes in the economic and business climate. It is rare these days that I have a conversation without being asked for my take on how these changes are affecting the current job market and the near-term prospects for job seekers in our industry.
Not surprisingly, the drumbeat of negative news about the economy resulting from the meltdown of the financial markets has many people on edge about the stability of their companies and the security of their jobs. At Smith Hanley, we have been paying close attention to every aspect of the current crisis — what I see happening in the quantitative job market is surprising, and should offer my audience relief and even confidence.
We are still seeing a healthy amount of hiring and new job openings. Last year was a record revenue year for the quantitative recruiting groups at Smith Hanley; and this year, even if we have a weaker fourth quarter, we will surpass last year’s numbers. Certainly, the overall unemployment rate has climbed rapidly from 5% this summer to a current rate of 6.1%; the weekly jobless reports are also grimmer, with the number of jobs lost in September nearing 150,000. In the panic of the moment, however, it is important to note that the unemployment rate for college educated professionals is still at very low 2.5% and I strongly believe that for analytics professionals, that number is lower still.
While it’s true that this recession is having a negative impact on employment in most disciplines, professionals with backgrounds in data analytics (including statisticians, econometricians, operations researchers, and mathematicians) are continuing to enjoy job security and employment opportunities. Albert Einstein once said: “Try not to become a man of success, but rather to become a man of value.” In uncertain economic times, the best advice we can give the men and women in our field to keep their jobs secure is to work hard and demonstrate to their employers the value they bring to table. As quantitative professionals, they are uniquely qualified to sift through the mountains of business data necessary to help management develop effective streamlining strategies, a vital tool in this economy. In this case, it is nice to be considered to be among “America’s most wanted”.
These are interesting times. In a news cycle full of gloom and doom, I am pleased to report that employment in analytics remains robust, and with no substantial layoffs or hiring freezes in sight. But in this volatile environment, things could be different next week – so stay in touch with your recruiter at Smith Hanley for the latest updates on the analytical employment market.
Linda Burtch
Managing Partner – Smith Hanley Associates
Tuesday, September 16, 2008
Statistician
Kansas City based company is seeking an experienced Statistician. In this role you will coordinate research projects by directing the day-to-day activities of analysts to assigned projects. You be will be responsible for conducting statistical analysis with a focus on experimental design, behavioral analysis, data mining, customer segmentation, predictive modeling as needed in support of business initiatives. For this role a candidate should have a Master's degree in Statistics, Mathematics, Economics, Operations Research as well as a minimum five years developing statistical models. Strong proficiency in SAS with an emphasis on statistical analysis, programming, data manipulation and data quality management skills. Location Kansas City. Salary $85-95K. Ref #HK1041323
Wednesday, February 20, 2008
2008 Job Trends
Don’t Panic Over Recession Forecasts
In light of the dire predictions filling today’s economic and political news, I want to share some of my expectations for the quantitative job market going in 2008. Many of the sobering employment statistics released February 1 by the US Labor Department do not reflect our industry’s current outlook. Though the economy as a whole lost 17,000 jobs in January (the first monthly decline in four years), and the number of long-term unemployed (+6 months) is up about 21% from a year ago, I am happy to report that job security for the quantitative professional is high, with continued strong demand and frustratingly short supply.
Quantitative Professionals are Secure …
Recruiters here at Smith Hanley have not seen any significant signs of slowdown in our job markets. To date, there have been few layoffs in the quantitative professions, and recruiting and hiring remain a priority for many departments. Talented professionals are still in short supply, continuing to make it difficult to fill open positions even in this changing economic climate, and also making quantitative specialists less vulnerable during layoffs.
… with Some Exceptions
The consumer credit groups are a bit of an exception to the general level of security afforded the rest of the quantitative industry. The mortgage crisis has resulted in some cutbacks at lending institutions, banks and real estate companies, especially those heavily involved in the subprime market. For those who remain, bonuses have been uneven.
In addition, corporate hiring managers do seem less interested in entry-level statisticians at this time, believing (or maybe just hoping) they will be able to take advantage of the softening market to add experienced, talented staffers. I continue to encourage our clients to be open to considering junior or entry-level statisticians, as other industries are still competing for more experienced hires. By accommodating the learning curve of entry-level statisticians, companies may be cultivating a unique talent base that will garner large returns on their investments as the need for industry-specific quantitative experience continues to grow unchecked.
Industry Crossover Presents New Opportunities
Hiring managers across the board are realizing they might find the employees they need among the ailing credit industry’s talented quantitative professionals. Candidates with bank and credit experience offer knowledge of sophisticated statistical techniques, as well as expertise in managing large and often messy data sets. In the past, it has been a challenge for other industries to compete with the higher compensation levels and generous benefit packages of the big banks. As the credit industry pulls back, candidates are looking outside that arena with new eyes, suddenly able to appreciate the career advantages offered by knowledge diversification.
Consulting Firms Continue Healthy Growth
As many corporations are realizing the limitations of outsourcing their analytics overseas, they have turned to domestic consulting resources to handle their quantitative needs. This has lead to
a visibly growing demand for quantitative professionals in consulting environments - from very large global concerns to small boutique shops.
Relocation Presents Continuing Challenges
For 18 months, the soft housing market has had a major impact on the ability of candidates who own homes to relocate. A few companies are able to provide a safety net for homeowners through a buy-back policy, reducing the stress involved for families contemplating a move. Other companies have agreed to extend temporary housing allowances (in the past often limited to three months) to accommodate the longer time required to sell a home.
Salaries Remain Firm
In another sign that our industry is riding out the recession news, the recent market pullback has not reduced the salary offers our quantitative candidates are receiving. Though bonuses will be disappointing for many this February and March, others will see on- or above-target payouts. The frequency of sign-on bonuses is also holding steady at about 35% of the offers our candidates receive.
Let Us Help You Navigate the Shifting Economic Terrain
Though negative economic reports continue to make the daily news, the real news for our industry is much brighter. Quantitative professionals are still enjoying lucrative careers, with new opportunities for growth and diversification rising from both traditional and unexpected sources. Smart hiring, creative thinking and careful career management will help ensure a positive outlook for quantitative professionals. I will continue to monitor the market closely for changes and trends, and look forward to analyzing the news to help you stay abreast of developments affecting your career.
In light of the dire predictions filling today’s economic and political news, I want to share some of my expectations for the quantitative job market going in 2008. Many of the sobering employment statistics released February 1 by the US Labor Department do not reflect our industry’s current outlook. Though the economy as a whole lost 17,000 jobs in January (the first monthly decline in four years), and the number of long-term unemployed (+6 months) is up about 21% from a year ago, I am happy to report that job security for the quantitative professional is high, with continued strong demand and frustratingly short supply.
Quantitative Professionals are Secure …
Recruiters here at Smith Hanley have not seen any significant signs of slowdown in our job markets. To date, there have been few layoffs in the quantitative professions, and recruiting and hiring remain a priority for many departments. Talented professionals are still in short supply, continuing to make it difficult to fill open positions even in this changing economic climate, and also making quantitative specialists less vulnerable during layoffs.
… with Some Exceptions
The consumer credit groups are a bit of an exception to the general level of security afforded the rest of the quantitative industry. The mortgage crisis has resulted in some cutbacks at lending institutions, banks and real estate companies, especially those heavily involved in the subprime market. For those who remain, bonuses have been uneven.
In addition, corporate hiring managers do seem less interested in entry-level statisticians at this time, believing (or maybe just hoping) they will be able to take advantage of the softening market to add experienced, talented staffers. I continue to encourage our clients to be open to considering junior or entry-level statisticians, as other industries are still competing for more experienced hires. By accommodating the learning curve of entry-level statisticians, companies may be cultivating a unique talent base that will garner large returns on their investments as the need for industry-specific quantitative experience continues to grow unchecked.
Industry Crossover Presents New Opportunities
Hiring managers across the board are realizing they might find the employees they need among the ailing credit industry’s talented quantitative professionals. Candidates with bank and credit experience offer knowledge of sophisticated statistical techniques, as well as expertise in managing large and often messy data sets. In the past, it has been a challenge for other industries to compete with the higher compensation levels and generous benefit packages of the big banks. As the credit industry pulls back, candidates are looking outside that arena with new eyes, suddenly able to appreciate the career advantages offered by knowledge diversification.
Consulting Firms Continue Healthy Growth
As many corporations are realizing the limitations of outsourcing their analytics overseas, they have turned to domestic consulting resources to handle their quantitative needs. This has lead to
a visibly growing demand for quantitative professionals in consulting environments - from very large global concerns to small boutique shops.
Relocation Presents Continuing Challenges
For 18 months, the soft housing market has had a major impact on the ability of candidates who own homes to relocate. A few companies are able to provide a safety net for homeowners through a buy-back policy, reducing the stress involved for families contemplating a move. Other companies have agreed to extend temporary housing allowances (in the past often limited to three months) to accommodate the longer time required to sell a home.
Salaries Remain Firm
In another sign that our industry is riding out the recession news, the recent market pullback has not reduced the salary offers our quantitative candidates are receiving. Though bonuses will be disappointing for many this February and March, others will see on- or above-target payouts. The frequency of sign-on bonuses is also holding steady at about 35% of the offers our candidates receive.
Let Us Help You Navigate the Shifting Economic Terrain
Though negative economic reports continue to make the daily news, the real news for our industry is much brighter. Quantitative professionals are still enjoying lucrative careers, with new opportunities for growth and diversification rising from both traditional and unexpected sources. Smart hiring, creative thinking and careful career management will help ensure a positive outlook for quantitative professionals. I will continue to monitor the market closely for changes and trends, and look forward to analyzing the news to help you stay abreast of developments affecting your career.
Friday, October 19, 2007
Entry Level Salaries
Here's an insight into entry level jobs in the marketing analytics industry. Statisticians entering the business world after completing a Master's Degree can expect an average base salary of $62,500, as reported by Kristen Wetta, statistical recruiter at Smith Hanley Associates. Interestingly, there was very little difference in salary regardless of geographic location. Salaries in the more expensive East Coast region of the nation closely matched other parts of the country.
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