Although we live in an age of massive amounts of data all around us, it doesn’t do anyone any good until it’s collected, processed, and refined into something useful. Then, much like a raging torrent of water, it needs to be channeled and directed to the areas that need it.
Unsurprisingly, there’s a significant demand for professionals who can collect data, analyze it, and turn it into something actionable. But not every company pays the same, and if you’re going to earn a data analytics salary by going through gigabytes of data, you need to ensure that you’re getting the best pay available.
And that’s why we’re here today. This article explores data analytics salaries and approaches the topic of compensation from multiple perspectives. First, we will discuss what a data analyst does, how to become one, a data analyst’s average salary, and data analyst salaries based on various criteria. Then, we’ll finish things off by looking at the future of data analytics professions.
We start by defining data analytics.
What Do We Mean by Data Analytics?
Data analytics is the discipline of analyzing raw data to make conclusions about the information. It involves various processes, tools, and technologies to identify trends and solve problems using the collected data. As a result, data analytics can potentially shape business processes, improve decision-making, lower risks, and encourage business growth.
Is Data Analytics the Same as Data Analysis?
Nope. Although the two fields are closely related and the phrases are often used interchangeably, they are two distinctive concepts. For example, consider “analysis” to be what a professional does when they interpret data, collect it into an understandable idea, and build an action plan as a result. On the other hand, consider “analytics” as something a computer does when it accepts data and statistics, stores the information, makes calculations, and provides the resulting information for future study.
Or, to approach this from a different angle, data analytics is the broader term, and data analysis is a sub-component. Data analytics is the overarching discipline dedicated to managing the data (collecting, organizing, storing), and data analysis involves extracting helpful information from that data.
What is a Data Analyst?
Data analysts review data, identify critical and valuable insights into the business’s customers, and figure out how the data can be used to solve problems. Data analysts then communicate this information to management and stakeholders.
But what does a data analyst do specifically to earn that generous data analytics salary?
What Does a Data Analyst Do?
Here are some specific responsibilities found in typical data analyst jobs.
- Use automated tools to extract data from good sources
- Develop and maintain databases and data systems, reorganizing the data into a readable format
- Remove any corrupted data and fix coding errors and related issues
- Perform analysis to assess data quality and meaning
- Filter the data by reviewing reports and performance indicators and identifying and resolving problems in the code
- Use statistical tools to find, analyze, and interpret patterns and trends within complex data sets that could be used for diagnostics and predictions
- Assign numerical values to critical business functions to assess and compare their performance over time
- Analyze local, national, and worldwide trends that could impact the organization and the entire industry
- Work alongside programmers, engineers, and management heads to identify opportunities for process improvement, devise data governance strategies, and propose system modifications
- Prepare reports for management, calling out trends, patterns, and predictions developed using the relevant data
- Prepare final analysis reports to help the stakeholders understand all the data analysis steps, enabling them to make vital decisions based on the facts and trends presented.
How Do You Become a Data Analyst? A Step-by-Step Guide
Although we’re here to discuss concepts such as the typical data analyst average salary, let’s explore a quick rundown on how to start your career as a data analyst.
- Get a degree. First comes education. Get a bachelor’s degree in a relevant field, such as computer science or mathematics.
- Learn about data analysis tools. Data analysts require experience working with databases and data analysis tools. They must be proficient in writing SQL queries and procedures and become familiar with Microsoft Excel, Matlab, and IBM SPSS.
- Get familiar with statistics and machine learning algorithms. Study concepts such as regression analysis, hypothesis testing, probability distributions, and different classification and clustering techniques.
- Understand data visualization tools. Data analysts frequently create business reports using various data visualization tools like Power BI, Tableau, and QlikView.
What is the Average Data Analyst Salary?
According to Glassdoor.com, a data analyst’s average salary in the United States is $70,764 annually. Additionally, Data analyst salaries can go as low as $46,000 and as high as $109,000. This figure is just an average and is subject to many factors, which we will discuss.
Data Analytics Salary by Experience
When an organization hires a data analyst, they are essentially renting that person’s skill set and experience. The more experienced the candidate, the better the compensation. Here is a breakdown of data analyst salaries by experience, provided again by Glassdoor.com. The data analyst salary entry level figure is rather generous for the lack of experience, and the growth is steady and represents a good compensation package.
- 0-1 Years (Entry Level). $64,844 per year
- 1-3 Years. $71,493 per year
- 4-6 Years. $77,776 per year
- 7-9 Years. $82,601 per year
- 10-14 Years. $90,753 per year
- 15+ Years. $100,860 per year
So, from the above figures, we can see an increase of around $36,000 from a beginner to a senior data analyst salary (ten years’ experience or greater).
Data Analytics Salary by Industries and Companies
A data analyst’s average salary can vary depending on the company. Here are the top five industries that pay the best.
- Information Technology. $94,608 per year. This figure is 11% higher than in other industries.
- Energy, Mining, and Utilities. $90,284 per year. This figure is 7% higher than in other industries.
- Pharmaceutical and Biotechnology. $88,189 per year. This figure is 5% higher than in other industries.
- Agriculture. $87,691 per year. This figure is 4% higher than in other industries.
- Personal Consumer Services. $86,568 per year. This figure is 3% higher than in other industries.
And here is a sample of a dozen companies and what they offer as compensation, all reported by Glassdoor.com.
- Meta. $149,238 per year
- Snowflake. $138,729 per year
- Tencent. $138,243 per year
- Microsoft. $130,563 per year
- Cisco Systems. $129,802 per year
- Apple. $111,382 per year
- Amazon. $107,462 per year
- Qualcomm. $104,249 per year
- IBM. $102,438 per year
- Capital One. $89,506 per year
- Wells Fargo. $89,105 per year
- Wayfair. $83,488 per year
Data Analytics Salary by Location
The following is a collection of the ten states that offer the highest average data analytics salaries, as reported by Ziprecruiter.com.
- New York. $84,127 per year
- New Hampshire. $77,989 per year
- Wyoming. $73,370 per year
- Arizona. $73,059 per year
- Tennessee. $72,370 per year
- Hawaii. $71,959 per year
- Massachusetts. $71,531 per year
- Indiana. $70,801 per year
- Montana. $70,651 per year
- Nevada. $70,552 per year.
Let’s look at individual cities and what they pay, as reported by Indeed.com.
- San Jose, CA. $92,457 per year
- Irvine, CA. $83,335 per year
- New York, NY. $81,752 per year
- Seattle, WA. $80,044 per year
- Houston, TX. $77,974 per year
- Dallas, TX. $77,164 per year
- Austin, TX. $75,407 per year
- Chicago, IL. $73,031 per year
- San Antonio, TX. $68,886 per year
High-Paying Data Analyst Jobs
There are variations in the data analyst profession, and each offers unique compensation. For instance, the average data analyst engineer salary is $95,297. Business analysts make $85,503 annually. And business intelligence analysts earn $82,258 per year. But of course, this is just a tiny sample of today’s data analytics jobs.
The Salaries of Related Data Analytics Professionals
Payscale reports these salary ranges for careers that share an affinity with data analytics.
- Administrative Assistant. Annual range: $30K-$59K
- Software Engineer. Annual range: $66K-$133K
- Project Manager, (General). Annual range: 51K-$117K
- Operations Manager. Annual range: $46K-$109K
- Office Manager. Annual range: $36K-$73K
- Customer Service Representative (CSR). Annual range: $31K-$59K
- Financial Analyst. Annual range: $50K-$85K
- Software Developer. Annual range: $54K-$111K
- Senior Software Engineer. Annual range: $92K-$164K
Data Analytics Job Outlook
The U.S. Bureau of Labor Statistics forecasts a 25 percent growth rate for data analytics jobs between 2020 and 2030. This figure represents a dramatically sharper increase than the average for other careers. Also, during this decade, the BLS projects more than 10,000 openings for qualified data analysts.
Can You See Your Future in Data Analytics?
If you like the idea of becoming a data analyst, you need to check out this data analytics bootcamp and gain the skills required to establish a rewarding career in the field.
Whether you’re just now entering the field or are an experienced industry veteran who wants to upskill, you will gain valuable analytics skills such as:
- Data Analytics
- Data Analysis in AWS
- Data Manipulation
- Linear and Logistic Regression
- Data Analytics using Python
- Statistical Analysis using Excel
- Data Visualization with Tableau
This amazing bootcamp uses applied learning and multiple hands-on projects with integrated labs to give you the finest skill set for success in data analytics. So don’t wait; sign up for this highly instructional course and set yourself up for a handsome data analytics salary!
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