As the amount of data and information available to businesses continues to increase, so does the demand for skilled people to process and interpret it. That’s where data analysts come in.
In short, data analysts use mathematical and analytical methods to transform data into better business decisions. These professionals generally start with a survey process where analysts find survey participants and gather the needed information. The data is then interpreted and presented in the form of charts or reports. Data analysts may also choose to put their survey data in online databases.
Today, we’ll discuss what you can expect to earn as a data analyst and how various factors, like experience, industry, location, and job title can also impact and expand your data analyst salary.
Who should become a data analyst?
Individuals who are interested in data gathering and knowledgeable in computer programs such as Microsoft Excel, Microsoft Access, SharePoint, and SQL databases should consider a career as a data analyst.
Data analysts should have good communication skills and the ability to work with clients, supervisors, and managers to meet goals set by all parties. Data analysts should also have a hard work ethic and work for the betterment of their company.
As a data analyst, you will:
- Collect customer requirements, determine technical issues, and design reports to meet data analysis needs.
- Identify new sources of data and methods to improve data collection, analysis, and reporting.
- Collect, analyze, and report data to meet customer needs.
What is the average data analyst salary?
According to Glassdoor, the average base salary for a data analyst in the United States is $63,865. However, the earning potential is higher in Connecticut. According to Indeed, the average data analyst salary in Connecticut is $77,561 per year.
While the U.S. Bureau of Labor Statistics does not report on data analysts holistically, it does provide insight into career paths within this sector. Operation research analysts, for example, who help organizations make data-informed decisions, earn a median annual salary of $82,326 nationwide. Furthermore, data scientists earn a median salary of over $100,000 per year, according to the BLS. For both career paths, the salary potential is even higher in Connecticut.
While these ranges vary, each of these salary figures is higher than the average annual salary of $58,260 across all occupations in the U.S.
That being said, there are also several additional factors, like experience, industry, location, and job title that can all affect and increase your salary as a data analyst.
Factors that Impact Data Analyst Salaries
One of the most significant factors that can influence your salary as a data analyst is your level of experience. Generally speaking, the more years you spend working, the more you can expect to earn.
For example, data analysts can earn:
- $98,682 with 2 to 4 years of experience
- $112,593 with 5 to 7 years of experience
- $138,031 with 8 or more years of experience
Additionally, moving into a leadership position can further enhance your earning potential to an average salary of $129,076 in the U.S., and directors of analytics can earn as high as $180,392 annually. These higher-level careers typically require a graduate education.
Almost every industry could use a data analyst to help make and drive better business decisions. However, the industry you choose to work in as a data analyst can have an impact on your pay.
Similarly, the industries where the demand for data professionals is highest also tend to be the same industries that pay the most on average.
According to an IBM report, more than three-quarters of data job openings are in the following industries:
- Finance and Insurance
- Professional, scientific, and technical services
- Information technology management
The city where you live also has an impact on your salary as a data analyst. Typically, working in cities like San Francisco, New York, Boston, and Washington D.C. yields a higher salary (to match the higher cost of living).
That being said, as more and more companies utilize remote workers, they also offer salaries that take into account location rather than merit alone.
In Connecticut, the average entry data analyst salary is $71,601 according to Salary.com, but over time, can exceed $100,000 annually, according to BLS data.
Being hired as a data analyst could only be the first step in your data career. As you gain more experience, skills, and new data science skills, you might find yourself in more specialized and advanced positions.
And with these advanced positions and new titles, you will earn a higher salary. Some examples of these positions and salaries are:
- Business analyst: $91,491
- Business intelligence analyst: $83,612
- Data engineer: $114,196
- Machine learning engineer: $123,804
- Data architect: $153,489
As you can see, a career as a data analyst is highly lucrative and there are also several ways to increase your pay. And while some data analysts do not have degrees, it is those with a bachelor’s degree or master’s degree in Data Analytics that have the most success and highest earning potential.
In fact, data analysts with a master’s degree in Data Analytics or other computer science-related fields could earn some $15,000 more than those with just a bachelor’s.
At the University of Bridgeport, we offer both a Bachelor of Science in Data Analytics and a Master’s of Science in Data Analytics. Our graduates develop the necessary skillets to extract, analyze, organize, and present data in a way that is meaningful and useful for organizational decision making
Reach out today for more information about both of our programs. Your future as a data analyst starts today!