What’s The Average Salary for Business Analysts?

Business analysts are responsible for ensuring that the corporate world runs smoothly. They perform a variety of roles, including helping companies improve productivity and figuring out distribution details.

The salary of business analysts is dependent on many factors such as education, experience, job function and location. The term business analyst is a broad term that covers general analysts at the beginning of their careers through to more experienced consultants with decades of experience.

The following is the current status as of May 2020 The median salary for business analysts was $86,660 According to O*NET Online (O*NET), this is an average annual salary. It is difficult to determine a typical salary for a business analyst due to the variety of roles in the field. You can get a better idea of the salary of a business analyst by considering the different roles available in different industries and discrepancies between salaries at different stages of their career. Business analysts’ salaries are also affected by where they live. Some areas offer better pay than others.

Business Analyst Salary based on Experience

Business analysts’ salaries are determined by their experience. This can be broken down into entry-level to junior-level positions and senior-level roles. These categories will be defined differently by different organizations. Entry-level business analyst salaries are more affordable than those for higher-ranking positions. The salary of a senior business analyst will be higher.

The experience of a business analyst will determine whether they are considered to be entry-level, senior-level, or junior-level. Important to remember that different businesses and organizations might define these three levels differently. Business analysts should take this into consideration when looking for work opportunities or researching potential earning potential.

According to O*Net Online, business analysts who are in the top 10% of earners earn at least $156,840 per annum, while those in the bottom 10% earn $50990 per annum. Business analysts may earn more as they advance in their careers. However, this often requires them to take on greater responsibility, learn new skills, and expand their knowledge through coursework such as an online master’s degree in business analytics.

Salary for an Entry-Level Business Analyst

There are many job opportunities for business analysts in their early years. These jobs may allow you to learn business analytics, apply your skills and move forward professionally. Even if you are not an expert in business analytics, you can still start your journey to becoming one.

These are some of the entry-level positions for business analysts:

• Information Security analyst. This job involves securing an organization’s computer network and creating and implementing security measures.
• Computer Systems Analyst. These analysts analyze an organization’s computer infrastructure to find ways to improve its efficiency and effectiveness while considering the impact on a company’s businesses.
• Management Analyst. Business analysts are responsible for understanding and communicating how an organization can be more efficient.
• Budget Analyst. This position assists the private and public sectors in managing the financial aspects of individual companies.
• Market Analyst. Market researchers use market data to identify potential sales opportunities for a product or service.

Many of these jobs, as we’ll see below, don’t require a lot of experience in the field or advanced degrees. According to data from the Bureau of Labor Statistics, all of the jobs listed below require only a bachelor’s degree. The salary for an entry-level position as a business analyst is usually not as high as those with more experience or education. Some of these jobs can still offer above-average earnings.

According to the BLS, the following are the median annual salary and years of experience required to reach each of these positions. All data are from May 2020.

This table contains information that was retrieved April 20,22.

Salary for Senior Business Analyst

As mentioned previously, the salary of a senior business analyst is more than that of a junior-level or entry-level professional. Senior business analysts may have master’s degrees and years of experience. These positions may offer greater earnings and the possibility of supervising employees. Experienced business analysts might be interested in the following senior-level positions:

• Financial project manager. This role focuses on long-term goals and helps organizations achieve financial sustainability.
• Information and Computer System Manager. These senior analysts oversee computer systems within an organization and manage operations related to them.
• Marketing, Promotions, and Advertising Manager. This position involves researching and planning programs to increase interest in products or services.

The BLS has provided the following information: the median annual salary, and the years of experience required to reach each position. All data on pay dates is as of May 2020.

This table contains information that was retrieved April 20,22.

Top Paying States/Locations for Business Analysts

The location a business analyst chooses where to work can impact their salary. Business analyst salaries vary widely by state, region, and city. It can be difficult to determine which areas offer the highest salaries for business analysts because there are many roles and occupations that “business analyst” refers to.

However, there are some patterns that can be easily identified. We have used data from BLS to simplify the issue. This includes data for management analysts. It also includes business analysts.

O*NET May 2020 data revealed that Washington, D.C., and New Jersey offered the highest salaries to management analysts, with the mean annual earnings of $109,220 in Washington, D.C., and $104,610 for New Jersey. Massachusetts had the third highest mean annual earnings of $101,390.

According to O*NET, the five states with the highest salaries for business analysts were, on average, the following:

This table contains information that was retrieved April 20,22.

These were the five top-paid cities for business analysts, according to O*NET.

This table contains information that was retrieved April 20,22.

These are not the only areas where most business analysts work. Based on O*NET data, take a look at the median salary for management analysts within metropolitan areas with the highest employment levels for management analysts for 2020.

This table contains information that was retrieved April 20,22.

Business Analyst Salary according to Industry

The industry a business analyst works in may also play a role in determining their pay. Higher demand fields can lead to higher salaries.

According to the BLS, Employment in all industries is expected to increase 7.7% between 2020-2030. However, some industries might exceed this average. These are the top-demand areas for business analysts.

Information Technology. As businesses increasingly depend on technology for their operations, IT might be a field that business analysts should consider. According to the BLS, information technology and computer occupations will see a 13% increase in growth between 2020-2030.

Computer systems analysts or system architects are business analysts who work in information technology. They help to bridge the gap between technology and business by designing solutions that improve the efficiency of organizations’ computers. According to the BLS, the average salary of a computer system analyst was $93,730 in May 2020.

Finance/Insurance. The BLS predicted business and financial operation occupations will experience 8% growth between 2020-2030.

Business analysts could find work as financial analysts, which advises businesses on how to increase their profits. The median salary for a financial analyst was $83,660, according to the BLS.

Healthcare. Healthcare is another growing industry. It may suit people who have a background in business as well as an interest in healthcare. Information technology: Computer systems analyst $93,730 Finance/insurance $83,660 Manager, Medical and Health Services $104,280

FAQs about Business Analyst Salary

The industry in which the business analyst works, their experience level and where they work will all impact how much they earn. Here are some common questions about salaries for business analysts.

What is the average salary for a business analyst?

According to the BLS, the median annual salary of management analysts (which includes business analysts) was $87660 in May 2020. A business analyst can work in many different fields. The salary of a business analyst can vary depending on the industry, their location, and how experienced they are.

What is the hourly wage of a business analyst?

Based on an average annual salary of $87660, the 2020 median hourly wage for a management analyst (which includes business analysts) is $42.14/hour. The hourly rate of a business analyst can vary depending on their industry, experience and location.

Which industry is the most lucrative for business analysts?

As discussed in the previous section, business analysts working in the health care sector have the potential for the highest salaries. As of May 2020, the median salary for health and medical services managers was $104,280.