Contract Data Scientist Hourly Rate: How Much Is It?
When companies are looking for ways to increase profit, reduce costs, and improve product/service quality, they turn to data scientists.
These experts have the skills to process all kinds of data and turn it into easily digestible insights. However, accessing these skills can be pricey.
In this article, we’ll provide guidance on finding the best-value data scientist for your needs and determining a reasonable hourly rate.
Are Contract Data Scientists Expensive?
Yes, data scientists, in general—not just freelancers—can be expensive. These highly valued experts are in high demand but low supply.
However, some are more affordable than others, depending on their level of experience, which we’ll get into below!
How Much Is a Typical Contract Data Scientist's Hourly Rate?
Not all contract data scientists are equal. Some who have been analyzing data for years will ask for a hefty sum, but others who have just started their career will be lighter on your wallet.
Here’s a rough estimate of what to expect in terms of cost for contract or freelance data scientists:
Novice: ~$50
Novice data scientists have little experience in this type of role, so their rates will start around $25/hr and go up to about $50/hr, since their limited background does not justify higher rates.
Those around the $25/hr range are beginners with little to no work background other than a short internship.
However, keep in mind that novice data scientists will quickly improve, which means they might expect a raise soon after their hire.
Regarding their skills, novice contractors will have the fundamental skills for data analysis and basic programming knowledge to transform data into actionable insight. They may require guidance to better understand company data.
Intermediate: $50–$100
For intermediate-level analysts, the hourly rates may become too expensive for certain companies. You will be looking at $50/hr to $100/hr for more experienced freelance data scientists.
The rate will depend on factors such as years of experience, industry knowledge, project timeframe, and difficulty.
If the freelancer in question has a background in your industry and you’re looking to hire him for a longer timeframe (6+ months), your company will be looking at an hourly rate closer to the $100/hr range.
Regarding their skills, intermediates will be experts at data analysis and the accompanying tools. What’s more, experienced data scientists are proficient in programming languages for large language model development. They’ll also require little to no help to understand the company's goals.
Expert: $100–$250+
Expert-level data scientists start with an hourly rate of $100/hr and can go up to $250/hr or more. These types of data scientists most likely have around 10 years of experience or more.
After 10 years in this role, an expert data scientist has most likely worked in a variety of industries, which means integrating them into your company should be simple.
Additionally, the period between their onboarding and producing usable data insights will be much shorter compared to that of less experienced data scientists.
The price range will vary primarily based on their knowledge of your industry and whether their skill set fits your needs.
Expect expert-level data scientists to have an advanced understanding of data and statistical analysis, deep learning, and big data technologies and to be very proficient in multiple programming languages to output information in various forms.
Most importantly, these experts should also bring other useful skills to the table, such as planning, decision-making, and even leadership, especially if you have a team of data scientists.
Things to Consider When Hiring a Contract Data Scientist on an Hourly Basis
When choosing your contract data scientist, there are a few factors to consider to help you find the right person for the role at an affordable hourly rate.
Relevant Experience
Finding a data scientist with experience relevant to your company's field is crucial if you want the best results. They will have a much better understanding of the potential challenges and will approach problems and their solutions appropriately.
Of course, it’s not a problem if you can't find a freelance data scientist with the right industry experience, but they will need time to learn the best practices for an accurate analysis. Just make sure you have a proper interview set up to get an insight on their data scientist background.
Programming Prowess
Software engineering and programming knowledge is another crucial factor when hiring a freelance data scientist at an hourly rate.
Their proficiency in programming (especially in Python and R) will ensure that the transformation is always something that you can utilize to improve your business.
To find out a candidate’s problem-solving methods and technical skills, consider asking them to live code during an interview or give them a take-home task.
You could also narrow down the number of candidates by contacting us to kick off a search!
Visualization And Communication Skills
A data scientist without proper visualization skills is not a good scientist. You need to look for a candidate who has the technical skills and understanding of the industry, but also someone who will be able to give you actionable insight.
Someone who can give you informative visuals, but also communicate exactly what the data/visuals are showing.
FAQs
How do I handle project delays or issues with a freelance data scientist?
One of the best ways to handle project delays is by setting realistic goals first. If those goals are already in place, your next step is to hold a meeting with the freelance data scientist and inform them about the potential issues with the delay.
Assess what kind of resources they will need to hit a realistic deadline. After that, make sure to carefully track progress to prevent future delays.
What strategies can help in effectively managing remote freelance data scientists?
The best way to manage remote data scientists is through clear and regular communication. This is usually best done with daily or weekly stand-ups.
Regular feedback is just as important for the data scientists to understand what are the best practices for your business. Having realistic expectations is also important to avoid micromanaging and to keep the work efficient.
How can I ensure a contract data scientist delivers value for the rate paid?
To ensure that you get the most value out of a contract data scientist, establish clear goals/deadlines, regular communication provides feedback.
It’s also paramount to monitor progress which is best done with one of the many project management tools. That is where your data scientist can publish progress, expectations, issues, delays, etc.
What questions should I ask when hiring a contract data scientist?
The questions that will give you the most valuable information when hiring a contract data scientist should be in regards to their technical skills, communications skills, and previous experience.
These questions should give you an insight into their potential in the role.
Consider asking them about their pricing structure as well to ensure the candidate is within your budget.
Where can I look for reliable contract data scientists?
Word-of-mouth recommendations usually lead to reliable hires, especially for positions like data scientists. Many companies also consider using LinkedIn since it is one of the biggest employment-focused social media platforms.
However, specialized services for talent hiring as we do at Burtch Works is the best way to find reliable IT contractors. We do this by creating a recruitment strategy tailored to your needs.
Conclusion
To summarize, freelance data scientists can cost anywhere between $50/hr and up to $250+/hr. The different factors such as technical skills, years of experience, industry experience, communication, etc. will determine that difference in hourly rate.
With this insight of ours, we believe that you will be able to find the perfect data scientist candidate for the job. And, if you’re looking to recruit even more talent in your company, consider checking out some of our other guides.