What Does a Data Analyst Do?
Data Analysts process and analyze large stores of data to locate information and trends about past and current practices, as well as offer predictions about what is likely to happen at a company or business based on these numbers. In addition, they transform these numbers into engagingvisualizationsthat are accessible to all members of a team or business. These clear and engaging visual aids can be used to help employers make sound business decisions.
Data Analysts work in a variety of fields, from the healthcare industry to retail to Wall Street. This article will explore the average salary Data Analysts can expect, depending on where they are working, their experience level, and the type of data analytics they focus on professionally.
Data Analyst Salary
As of December 2021, the median pay in the U.S. for a Data Analyst was$69K, according to Glassdoor. However, this number varies depending on which source is consulted. For example, Salary.com puts this number between $70K and $89K, whereas LinkedIn approximates the average salary to be $90K. The Bureau of Labor and Statistics places it at$86K, and consulting firm Robert Half lists Data Analysts’ average salary as$106K. Although these estimates differ significantly, the good news for aspiring Data Analysts is that each of these estimates is much higher than the average salary for all jobs in America, which was listed at $56K in 2021.
Many factors influence Data Analysts’ salary, such as industry, company size, location, and experience.
Some Data Analysts handle finance; others work with hospitality data or medical information. While nearly every industry relies on data analytics to inform business decisions, pay rates often depend on the analytic focus of the profession. For example, while Business Analysts on average make $77K a year, Database Administrators earn $83K.
Currently, three-quarters of job openings for data-related professions are in the fields of insurance, finance, information technology, manufacturing, and professional, technical, and scientific services. In 2021, the highest-paying industry focuses for Data Analysts in America were in the fields of finance, software/IT, hardware/networking, and entertainment. The average salary for Finance Analysts, as well as those working in software/IT was $65K. Data Analysts working in entertainment, as well as hardware/networking, make an average of $70K. Those looking to increase their salary may elect to work in one of these higher-paying industries.
In addition to the industry affecting pay rates for Data Analysts, the size of the company or organization also is a contributing factor salary. For the most part, larger companies pay their Data Analysts higher salaries than smaller organizations because they have a more substantial budget for working with data. However, it's important to note that working for a large company can be a more demanding and fast-paced environment than it would be in a smaller company, which means that along with a higher salary may come more work demands.
Some of the highest-paying data analytics positions in 2021 were in large companies. Data Analysts at Target made $132K, those working for Facebook earned $130K, and those employed by Citizens earned approximately $126K.
Where you work is another contributing factor of how much your salary will be. Big cities and data hubs, such as New York, San Francisco, Washington, D.C., and Boston tend to pay Data Analysts higher salaries, but also have correspondingly higher costs of living than other locations. Location-based salaries are becoming increasingly more common as more companies transition to geographically dispersed candidates.
The following average salaries in some of the major cities in America present an overview of what qualified Data Analysts can expect to earn:
- Phoenix: $125K
- Chicago: $132K
- Washington, D.C.: $141K
- Boston: $142K
- San Francisco: $151K
Not only do salary values depend on the city in which you live, but each state in the U.S. has its own average Data Analyst salary. According to ZipRecruiter, New York offers the highest statewide salary, $80K, and North Carolina comes in at the lowest rank, $50K.
Experienceis an important determining factor for how much a Data Analyst is paid. Similar to other professions, the rule of thumb is that the longer you work in a trade, the more experience, real-world experience, and specialized knowledge of tools and skills you acquire. Glassdoor breaks down Data Analyst salaries based on years of industry experience:
- Those who have worked between four and six years earn about $72K.
- Data Analysts who have seven to nine years of industry experience make $76K.
- For Data Analysts who have between 10 and 14 years of work experience under their belts, their expected salary is approximately $78K.
- After working as a Data Analyst for 15 years, the average salary is about $79K.
- For those who climb the ladder and become Analytics Managers, the expected pay rate jumps significantly, to $121K.
- Directors of Analytics, who are highest up on the Data Analytics professional totem pole at many organizations, can expect to make $147K annually.
How to Make More as a Data Analyst
If you are a Data Analyst interested in increasing your salary, you have several options:
- Expand your skills in data analytics and data science to include new tools, software, and programming languages.
- Change industry focus to a higher-paying professional track.
- Relocate to a tech hub or a major city where more lucrative data analyst positions are in demand.
- Work for a large company or organization.
- Gain several years of real-world experience as a Data Analyst.
- Enroll in post-graduate study or acertificate degreethat will teach you industry-relevant skills and make you a more well-rounded candidate.
There are currently many exciting, high-paying professional options for aspiring Data Analysts, as well as for Data Analysts interested in climbing the corporate ladder. In addition to the popularity of this field now, data-related careers are likely to continue to become more prevalent in the near future. The Global Big Data Analytics Market is expected to be worth$105 billionby 2027, which reflects a more than 12% growth from 2019 to 2027. What this means is that now is a great time to enter the field of data analytics.
Start Learning Data Analytics with Hands-On Classes
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