To become an analyst is very significant to interpret the data and make recommendations that may used by an organization widely in decision-making processes. Analyst help companies to understand a market trend, its financial performance and better operation efficiencies, contributing a significant part of their business which is making it worth the best and a vital career.

What Are the Main Types of Analysts?

Financial Analysts

Financial analysts assess numerical information about businesses, draft reports and make decisions and recommendations regarding funding and investment. Analysts review businesses’ financial statements, study economic trends, model financial scenarios to support business strategies and advise firms on the financial aspects of their choices.

Business Analysts

A business analyst identifies the needs of a business and finds solutions to optimise its processes, products and services. She liaises with stakeholders to assess requirements, analyse business operations and implement changes that enhance efficiency and increase profit.

Data Analysts

They collect and process huge datasets to extract information – a term meaning an amount of data that might be complex but not really ‘big data’. Sometimes, a more appropriate term is ‘comprehensive dataset’. They apply various statistical techniques to make sense of the information extracted. Then they create visual representations of the useful findings, which can be crucial to the required decision-making.

Market Research Analysts

Market research analysts study market conditions to determine the potential sales of a product or service. They collect data on consumer demographics, preferences and purchasing behaviour, and analyse the information for use in marketing.

What Does an Analyst Do?

Collecting and Analyzing Data

With information stemming from databases, surveys and financial reports, analysts process and analyse this information from different angles (a cumbersome task) with the help of statistics and analytical tools. Analysts identify new trends based on the data they work with.

Developing Insights and Recommendations

Analysts draw conclusions and put forth recommendations based on their analysis, to support business decisions. They provide insight to organisations about market trends, financial performance, and operational efficiencies.

Preparing Reports and Presentations

Analysts write-ups and presentations to convey their conclusions to stakeholders and with the help of data visualisation tools convert technical information into an overseeable format.

Collaborating with Stakeholders

Analysts are consistently working with stakeholders – executives, managers and members who are a part of your organisation – via requirements gathering, results sharing and change implementation.

Monitoring Industry Trends and Developments

Superseding stock-picking, analysts now need to keep informed of industry trends, economic developments and technological innovation – all to inform actions that can guide business strategy, as these insights happen in real-time.

Average Analyst Salary

Salary Ranges Based on Experience and Location

Analysts’ salaries vary depending on experience, location and industry. Entry-level analysts’ annual salary in the UK ranges between £25,000 and £35,000. Gaining more experience as a mid-level analyst increases this to between £35,000 and £50,000. Salaries of senior analysts and those in more specialised roles can be in the region of £50,000 to £80,000 or more annually.

An average entry-level analyst in the US can earn between $50,000 and $70,000 annually; a mid-level analyst with few years of experience, between $70,000 and $100,000 annually; and a senior analyst working in a large company in some industry, $100,000 to $150,000 or more annually.

Comparison of Salaries in Different Regions

The salaries of an analyst also differ from region to region. Analysts in London and other financial centres earn more while choosing to settle there. The simple reason is their high cost of living which drives up the salary and the desperation of companies to hire more skilled professionals in that region. For instance, an analyst based in London could get an extra £5,000 to £10,000 per annum depending on his experience.

In general, this means analysts tend to earn more in states that offer high pay and good living standards, such as New York, California and Texas – compared, for example, to states with lower cost of living such as Florida or Ohio. For example, analysts in New York City or San Francisco can earn much higher incomes than more typical or conventional places elsewhere in the US because they are needed in these large major business centres.

Factors Influencing Analyst Salaries

Several factors can influence the salaries of analysts:

• Experience: Salary also depends on experience. The more experienced analysts tend to earn more because normally they are more skilful and more expert about that stuff.
• Education and Certifications: College degrees or advanced degrees and industry-recognised certifications can improve projected salary. Professional certification is given by an official body after rigorous training and indicates higher competence, which can lead to increased pay potential.
• Location: Geographical position has made a deterministic result on the salary. Normally, analysts in the central area or high-living price zone will get higher rewards than field workers.
• Sector: Salaries also can vary by sector. Analysts working in finance, technology and healthcare could make more than those elsewhere.
• Supply of Analysts: The more analysts an area has, the lower the bargaining power for an individual. Conversely, under healthy market dynamics or in niche markets, businesses become willing to pay a premium to employees with critical skills. Demand for Analysts: The latter factor means that high local demand in fields with highly skilled professionals can drive up wages for all. For instance, markets growing at a rapid pace and industries undergoing a boom will lead to a higher number of firms competing for workers (which increases demand) and a greater number of applicants these firms will have to choose between (which puts upward pressure on salaries).

Analyst Skills

Technical Skills

• Ability to use data analysis tools and software (Excel, SQL, R, Python, etc.): Analysts must master the use of data analysis tools to enable them to process, analyse and visualise data.
• A good grasp of statistical methods: A good grasp of statistical methods and techniques is fundamental if you are going to use data to generate useful insights in the right way.

Soft Skills

• Communication: FGM analysts need to communicate to stakeholders and formers, generally featuring their findings and recommendations. So analysis involves presenting awkward information that’s useful in a way that is easy to swallow and understand.
• Critical Thinking: Critical thinking is about handling data, spotting patterns, and reaching conclusions.  If you’re an analyst, you need to think about a business problem logically and get to a solution. 
• Problem-Solving: Analysts should be good at Astro Teller of Google X describes the attitude required to come up with breakthrough innovations as ‘a lens of ignorance’: Don’t just assume things are going to work because someone smart figured them out. You have to see any new approach along with all the potential glitches that could make it fail. In other words, the solution to today’s business problems requires a clear-eyed vision of what is next. An ability to identify those ‘glitches’ will always command a high price.
• Attention to Detail: Paying close attention to details ensures accuracy in the analysis of data and in reporting the results. For instance, when a firm is producing thousands of components per day, counts can easily go awry if the person doing the counting isn’t meticulous.

Analyst Tips

Keeping abreast of industry trends and technologies

For an analyst to remain effective and competitive, he/she/they should be knowledgeable about the latest technologies, methods and best practices in this field. These areas are expanding rapidly; analysts need to seek new information regularly through industry publications (such as journals, news articles, conference publications, etc) and webinars, as well as participating in professional development programmes.

Networking Through Professional Organizations

Networking joining the Institute of Business Analysis (IIBA) or the International Institute of Business Analysis (IIBA) provides an opportunity for networking and tapping into professional organisations that give access to industry events, resources and a community of peers to support a professional’s career development and growth.

Getting certified and receiving ongoing training 

Taking exams and classes can help you to be a better analyst and grow your earning prospects. Many certifications are available, such as Certified Financial Analyst (CFA), Certified Business Analysis Professional (CBAP) and many more.

Gaining experience through internships and diverse projects

This option appreciates the significance of working on projects and internships to develop practical skills and expertise in the industry. It acknowledges that working on different types of projects and across different sectors would expose analysts to a range of challenges and solutions to the problems and hence that gaining experience with different industries and diverse projects would equip a graduate for real-time possibilities and competencies.

Analyst Requirements

Educational Requirements

• Bachelor’s Degree in Finance, Business, Mathematics, or a Related Area: Pursuing a formal education in finance, business, mathematics, or a related area is crucial for a career as an analyst. A bachelor’s degree also acts as a foundation for essential skills development such as data analysis, operations of the business, and management of finance.
• Relevant Coursework: Essential coursework includes statistics, economics, computer science and business management courses, and training in Power BI and related programs. This theoretical knowledge and practical skills complement the analytical process.

Certification Requirements

• Professional certifications: It’s one of the key factors to follow this profession. There are certain key certifications which can help you to achieve a higher position in analysis such as Certified Financial Analyst (CFA), Certified Business Analysis Professional (CBAP) or other related certifications. If you want to get this certification you will have to complete a certain course, pass an exam and get some experience.

Experience Requirements

• Internships and Entry-Level Positions: Analysts-to-be should seek out internships and entry-level positions that get their hands dirty so they can gain business experience through data analysis, financial modelling, business process improvement, and so forth. An internship or entry-level position can illuminate the day-to-day responsibilities integral to analysts’ roles and lay the groundwork for further career growth.

How to Become an Analyst

Completing Relevant Education

• Completing a degree: The initial step into becoming an analyst is to complete a finance, business, mathematics or a similar degree. These degrees provide the fundamental training in data analysis, business processes, financial planning and much more they may be quite involved and time-consuming depending on the career path you are looking to take. For example, the Master of Business Administration (MBA) in Boston is one of the leading courses around for the sector.
• Specialized Courses and Workshops: Along with academic training, courses and workshops on data analysis, business analysis, or financial analysis can help you pick up a set of skills that are demarcated from academic training. For instance, several courses can focus on areas like statistically valid methods, methods of data visualisation and analysis, and different techniques for business process improvement.

Gaining Practical Experience

• Internships and entry-level positions: Practical experience in the workplace through internships and entry-level positions will be indispensable. These internships should help the prospective analyst apply theoretical knowledge and their skills to real-world databases, work out how these can be improved and develop the analytical chops required to carry out these improvements. The steadiness and standards of the data and business operations will also become apparent.

Obtaining Certification

• Certified Financial Analyst (CFA): If you are interested in working in financial analysis, the CFA certification is quite helpful. This set of exams must be completed and shown to provide solid empirical proof of your practical experience through three differing levels of examinations – each of which allows a focused study in investment management, financial analysis, and ethical standards in the financial sector. 

• CBAP: For those with an interest in business analysis, one way to bolster credentials is to earn the Certified Business Analysis Professional (CBAP) certification by completing required coursework, an exam, and accruing experience.

• Other applicable certifications: Depending on your field of interest, other certifications such as Certified Data Professional (CDP) or Microsoft Certified: Data Analyst Associate can also be a plus.

Continuing Professional Development

• Workshops, Seminars, and Webinars: Continuously upgrading professional development Procedures. To stay abreast with the latest trends and best practices of the medical profession, medical professionals must attend seminars, workshops and webinars. These are good learning opportunities for networking with others and gaining professional development.
• Advanced Degrees and Niche Proficiency: MBAs, Masters in Data Science or other specialised degrees that position you for more senior or niche career opportunities with greater strategic or operational skillsets. 

Networking

• Join a Professional Organisation: Organisations such as the Institute of Business Analysis (IIBA) or the International Institute of Business Analysis (IIBA) offer members a network of peers, resources and access to events that can help further their careers.
• Industry Events and Conferences: Industry events can be anything from conferences, workshops or seminars, and they are important for networking. By building a professional network, a business analyst will have the opportunity to learn something new every day from experienced professionals. In addition to networking, this is also a space to explore job prospects and handle career prospects for a bright future. Lastly, it is an opportunity to keep up with the current trends and developments in the field of analysis.

Get Qualified as an Analyst

Data Analysis Essentials, Data Analysis Fundamentals, Data Analysis Online Course

Frequently Asked Questions (FAQ)

1. Why should you be an Analyst?

Working as an analyst can be both an interesting and creative career path. You get to deal with data, develop insights that fuel business decisions, and help organisations succeed. You are well respected, you have good job security and high salaries.

2. Is Being an Analyst a Good Career Choice for You?

Regardless of what company you’ve worked for, whether it be an FMCG, pharmaceutical or fintech, being an analyst is an excellent career move for you if: 

1. You have excellent analysis skills. If you can crunch clean data in Excel by day, and analyze/interpret the data by developing a strategy by night, then you’re already halfway there. Even if you don’t, but want to give analytics a try, give it a chance! 

2. You enjoy working with numbers. 

3. You love solving problems. You’re the kind of person who thinks in terms of problem, solution, and execution. This career suits team players, those who aren’t easily stressed by deadlines, enjoy being part of a fast-paced, ever-changing data-driven environment and have excellent critical and lateral thinking abilities. If you find those qualities to be true, chances are, this is your calling. 

4. You’re highly adaptable. Industries constantly evolve, and if you’re flexible and are always ready to change with the market, it will only bring you further up the ladder. 

5. You’re a voracious learner. Keeping up with the learning curve is a neverending process in this career, but the experience of standing at the forefront of technology is rewarding. 

6. Your communication skills are strong: If you can get along with your colleagues and can also maintain good relationships with clients, then this career should suit you. 

7. You have a versatile skill set, like programming. And if you’re working for a SaaS company, you could even be assigned to work on both the analytics and the technical side of the business.

3. Analyst Salaries

Analyst salaries also vary by level of experience, location, and industry. Junior analysts in the UK can start on £25,000-35,000 a year and $50,000-70,000 in the US. Mid-level analysts in the UK can earn between £35,000-50,000 a year and $70,000-100,000 in the US. Senior analysts and those who are more specialised can earn £50,000-80,000 a year in the UK and $100,000-150,000 or more in the US.

4. Which Qualifications Can Help with a Career in Analysis?

A degree in finance, business, mathematics or a related discipline is a must. It is desirable to have taken some coursework in statistics, economics, computer science and business management. You will also benefit from professional certifications such as CFA, Certified Business Analysis Professional (CBAP) and others.

5. Do I Need to Be an Experienced Analyst to Get Started?

No, you don’t need to be an expert analyst to get started – many entry-level positions and internships are available for beginners, providing valuable experience on the job, and training you as you go. Doing an internship or starting in a role such as a data analyst intern or business analyst trainee can help you to build up the skills you need to potentially transition to the role of a career analyst.

6. Analyst Career Outlook

In terms of career prospects, there’s good news. There’s a strong demand for business analysts of all types and across sectors. As businesses look to data-driven productivity to help them grow and become more agile, the need for wise and competent analysts of all types continues. So too does the potential for rewarding work and a professional life that enjoys good security, decently remunerated positions at every level – and the chance for senior and specialist positions to become available. There is also no end of potential work to be found in explorations of the newest technologies and applications of data analytics.

7. Analyst Hierarchy and Progressing Within the Role

Common career path for analysts begins with entry-level jobs like data analyst intern or business analyst trainee. With some experience and training, professionals can get promoted to mid-level roles like financial analyst or senior business analyst. More advanced level positions might include roles such as lead analyst, data scientist or analytics manager. Continuous learning, encompassing a wider array of skills and getting advanced certifications will further professional growth.

8. Analyst Exit Options and Opportunities

Analysts need not stay in the ‘back office’ of stakeholder and data analysis (even though there is a plethora of interesting roles there – strategy analyst, competitive analysis, or process improvement); there are also careers as a consultant, a project manager, an operator, or a strategist. Analysts who have spent some years in the field can come down to the ground and become business consultants, project managers, operations managers or strategists. The same pathway could take them into an academic career or researcher in the domain of data science or business analysis while training themselves further.