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HR Data Science: Salary Prediction at Trivago and StepStone

Dear guest!

On Tuesday evening, 29th of August 2023, I was at the Düsseldorf Data Science Meetup at Trivago, the Online search company for hotels, in their extraordinary headquarters in the Medienhafen of Düsseldorf, my birth city.

I left my office in Solingen early in the afternoon that day since I met with my business friend Dominik Rühl before the event – and walked in the sun from the Düsseldorfer Landtag (state parliament) at the Rhine to our meeting point at UCI cinema near Trivago.

Dominik Rühl (right) with me at the meetup before the talks. Foto: Stefan Klemens (Thanks to him for granting publishing)

It was good to see Dominik after about five years – And we had a fruitful exchange on our common topics artificial intelligence (AI), recruitment, skills, and digital assessment as well as some private issues. He is now working as a HR & Recruiting Manager at Advance Business Partner GmbH based nearby in the city of Neuss on the other side of the Rhine. The consulting company focuses on mobility services in different areas like recruitment, innovation, and transformation management.

Although the summer and weather this year in Germany is pretty unstable, we enjoyed sitting outside with our drinks at unique brewery bar Eigelstein.

Find out more about the Düsseldorf Data Science Meetup Group with its interests in Data Science, Machine Learning and Python/R, on this website.

Arriving at Trivago

The Trivago building as seen from the north-east of the Medienhafen Düsseldorf. Foto: Stefan Klemens

At 6 pm it was time to walk to nearby Trivago building, finished in 2018. The individual modern styled entrance area and the café behind offers a glimpse on how the interior of the building is decorated (see this article and this article about the New Work culture at Trivago and the architecture of the headquarter´s spaces.)

Surprisingly we, with another guest, were the first participants arriving (ok, it was half our before the official start and talks started even later), but were soon picked up by Gina from Trivago. Together we (and a cart full of pizza in yellow boxes for the data people) were lifted by one of the elevators to the top floor for the location event.

A stunning view to the south-west skyline from the roof terrace reached our eyes, and Dominik, the coming participants, and me enjoyed drinks and pizza before the event started at 7 pm.

Our co-host Aida Orujova gave us a very warm welcome, she introduced the speakers, and broke the ice by asking who is from data science, who is from engineering, and who just there to know more about salaries.

Co-host and moderator of the evening Aida Orujova welcoming the Data Science crowd. Foto: Stefan Klemens (with approval of the her)

First talk: Alexander Fischer, Trivago

Alexander Fischer from Trivago started with his talk about is passion for the programming and statistics software R, and his (and the economists´) “Swiss knife” methodical approach for prediction outcome variables: Linear Regression. He showed how he and his team used this classical algorithm with packages R´s fixest, and PyFixest to predict wage by using the variables education and ability (e.g. intelligence).

In his presentation of the problem in doing that (“The error term is correlated with the dependent variable”) he referred to a recent study using data from 59,000 Swedish men published 2023 by Marc Keuschnigg, Arnout van de Rijt, and Thijs Bol in the European Sociological Review (number 20, pages 1-14), titled “The plateauing of cognitive ability among top earners” (online article published here on January 28, 2023).

Since AB-Testing (or randomized experimental and control group design) is not feasible in the model (sending randomized individuals in one group for example one year more to college) the classical solution in Social Sciences and Psychology are Quasi-Experiments which were first introduced in the literature by standard book “Quasi-Experimentation: Design and Analysis Issues for Field Settings” written by Cook and Campell (1979).

As a solution for not manipulation experimental the years of education as predictor of the wage Alexander used therefore a variable called “distance to college” as a natural differing factor between people regarding their years of education.

The data scientist from Trivago further pointed out in his “The Secret Sauce” slide that taking the role of companies into account in the corresponding regression model, the computation is quite demanding (millions of employees, thousands of companies, 20 years of data) – But he presented of course a solution for it (and that was not Spark!).

At the end with the help of programming language Python and package PyFixest Alexander showed that the prediction of salary can be done, and he answered the questions of the audience.

Second talk: Michael Matuschek & Tim Elfrink, StepStone

In the second talk this evening we learned from Michael Matuschek and Tim Elfrink how StepStone is predicting the salaries of all kinds of jobs for their salary products.

Michael begun the session, and gave an overview about StepStone´s salary products include the Salary Planer, Salary on Listings, and Auto-generated Salary SEO pages.

As a result of a 2020 study and further research before it turned out that salary is for 96 % of the respondents the most important criteria when choosing a job (flexible working ours, career & training opportunities, and corporate culture, reach only 90 % resp. 91 %).

Michael Matuschek with Tim Elfrink from StepStone answering a question from the audience. Foto. Stefan Klemens. Thanks both for their approval of the picture!

Michael told us also about the challenges in prediction salary at StepStone regarding data distribution and features (more white collar jobs and little part-time data for example) and: The gender pay gap, quality assurance, feature engineering, the underlying model and the used algorithm, as well as the metrics (main business KPIs) accuracy and generalisation.

After him Tim Elfrink took the mic and explained the broader infrastructure of the predicting IT system with AWS and the auto deployment of the model. Further subtitles of his presentation were for example: Creating scalable infrastructure and development environment.

A number of questions (and some hints for improving their model) came from the participants, and Michael and Tim were happily answering them.

Closing, socks, and outlook

At 8.30 pm presenter Aida Orujova returned to the stage again and thanked all guests and speakers for being there. As several others I took the chance to talk with some participants (see header picture), before I needed to catch my tram to travel home.

Trivago-Logo in front of the building after sunset. Foto: Stefan Klemens

My second Düsseldorf Data Science Meetup was another wonderful experience (read about my first here), and the scheduled next event in October 2023 is of course on my list.

Oh, one last thing (we learned this from the apple guy, right?) I did not mention yet. Before the start the participants could grab one, two, or three promotional gifts from Trivago as shown in the picture: One for using your hand to write (still common among a few people I was told), one for storing big data in a small piece of metal, and one to keep your feet between 28 ° C and 33 ° C (surface temperature of the extremities as I learned writing this sentence) when external temperatures fall in later autumn.

Promotional gifts for the participants of the Düsseldorf Data Science Meetup from Trivago. Foto: Stefan Klemens

As I like to test digital and analogue things (I have high scores on openness to experience (see the Big Five Personality Traits) and curiosity which is one of my signature strengths according to the VIA-Model), the usefulness of the trivagonian socks to prevent cold toes needed to be proven also.

Note: If you like to know more about psychological traits and psychometric assessment of these for HR recruiting, selection, and development, then click on my work as a Work Psychologist as presented here: https://www.digitalassessment.de/

I can say that my feet got warmer but the real test of course – and perhaps then like a case study (N = 1) with more treatments like a stepstonian, a sipgatian, and quantopian fabric as well a control (no treatment, that is walking without socks! preparing for that right know!) – will be conducted in colder times which are coming soon to Germany. I will report on it! 😉 And perhaps you wanna join the experiment to lift the “N”, so results will be more valid?

Me testing the Trivago socks: And I am smiling realizing the double meaning of the words and symbols matching the two main areas of the company. Foto: Stefan Klemens

With this of course rather funny ending, I thank very much the organizers and speakers for this evening, and Trivago for hosting the meeting! Will we see us next time on a Düsseldorf Data Science Meetup (or another place if you like)?

Many greeting and all the best to you!

Stefan Klemens

PS: Want to exchange ideas on people analytics, digital assessment or artificial intelligence in HRM? Then network, write a message and/or make an appointment for an online meeting. Or the classic way: phone call.

And: You like my work and the content I regularly share? Then I’m happy about a Like or comment on LinkedIn. Thank you! 🙂 🙋‍♂️🌳

Kategorien
Event

7 People & HR Analytics Conferences till the end of 2023

Dear guest!

When Google launched their now famous Project Oxygen in 2008 (see this article for an overview) which was aimed to answer the question what makes a great manager, HR Analytics and HR Controlling (including predictive and advanced analytics) where already happening in a few companies – As well as quite a long time within the Work & Organizational Psychology research and connected disciplines.

Furthermore around 10 years ago some professional books had been published on how to use and deal with HR Data in order to improve companies´processes and results (see for example the publications from Jac Fitz-Enz or John W. Boudreau).

The influence of Google on People Analytics

But it was at that time the fast growing search engine startup from the Silicon Valley, and Laszlo Bock, Google´s former Senior Vice President of People Operations, who pushed People Analytics (together with others) to the world of business and Human Resource Management by his talks.

Lazlo also wrote the very readable bookWork Rules! Insights from Inside Google That Will Transform How You Live and Lead” about his experiences at Google. I bought the English edition when it was published in 2015, so I wouldn’t have to wait for the German edition; and most times it is better to turn to the original writing.

Nowadays People & HR Analytics including workforce analytics, talent analytics, and human capital analytics are well established in bigger and some medium-sized companies – And the need for collecting and analyzing HR and business data in an util way to implement new solutions and reach determined goals is still growing.

A growing number of conferences and exhibitions

One indicator for that development are the number of technology and data sessions at HR conferences and exhibitions, and specialized events on these topics – And because of their close connections and data-driven approaches these events take into account also the not so new but hot discussed tools and methods of Machine Learning, Deep Learning, and (Generative) Artificial Intelligence.

This is indicated by the following list, where I have put together 7 conferences and exhibitions focusing on People & HR Analytics including Artificial Intelligence which will be held between September and December 2023.

There are naturally major HR events coming up like the Zukunft Personal Europe 2023 in September as well as the HR Technology 2023 in Las Vegas and the UNLEASH World 2023 in Paris (both in October), which are going to host a bunch of sessions with these analytics topics too.

But for the reason of concentrating on those specialized HR events, and to keep my list short and clear, I did not enclose the extensive ones in my collection However I will cover them in separate newsblog articles as I did here already for the most traditional German HR summit at the Cologne fair.

7 upcoming People & HR Analytics events

But enough of my preface, here is the list with seven upcoming People & HR Analytics events from September to December 2023 you did expect by clicking on this article:

People Analytics World Amsterdam
7 September 2023
Amsterdam: DoubleTree Centraal Station
Organizer: Tucana Global SLU
https://www.peopleanalyticsworld.com/amsterdam

Please note: You might want to check out this newsblog article about the event in the dutch capital.

HR Analytics Summit
7 September 2023
London: The Barbican Centre
Organizer: Dynamic Business Leaders
https://www.hranalyticssummit.com

HR Leaders People Analytics Summit 2023
21 September 2023
Online Conference
Organizer: HR Leaders
https://hrleaders.co/peopleanalyticssummit

Swiss HR Analytics Event
28 September, 2023
Online Conference
Organizer: Swiss HR Analytics
https://swisshranalytics.ch/230928/

HR Analytics & AI Summit 2023
26 – 28 November 2023
Berlin: Titanic Chaussee Berlin
Organizer: we.CONECT Global Leaders
https://www.hr-analytics-summit.com/

CIPD People Analytics Conference
11 – 12 October 2023
London: The Montcalm London Marble Arch
Organizer: CIPD
https://events.cipd.co.uk/people-analytics

People Analytics Conference 2023 Winter
1 December 1 2023
Online Conference
Organizer: Edunomica
https://pacamp.org/

Final remarks

If you are into People & HR Analytics like me, then you probably know most of the conferences´ names, went to one or more in the past, and/or are traveling to some soon.

And although I often strive for integrity, the list is not complete And this was not my goal neither. I will have probably missed some events, so feel free to reach me, if another People & HR Analytics should enter into it: I will gladly add your proposal.

Have a nice day and best wishes!

Stefan Klemens

PS: You want to exchange ideas on People & HR Analytics, digital assessment or artificial intelligence (AI) in HRM? Then network, write a message and/or make an appointment for an online meeting. Or the classic way: phone call.

And: You like my work and the content I regularly share? Then I’m happy about a Like or comment on LinkedIn. Thank you! 🙂 🙋‍♂️🌳