As data continues to be a primary factor in the global economy, there is an increasing demand for the profession of data analyst. Data analysts provide businesses with the ability to digest large quantities of raw data, and provide insights from that information to assist in making sound business decisions. An area that many beginners and professionals alike would like to know about is how much money data analysts make and how much it changes as they gain experience.
This blog post provides an overview of average data analyst salary based on the years of experience, including a breakdown of the data analyst’s pay scale. It will also outline what a professional can anticipate in terms of growth from an entry-level data analyst to a senior data analyst.
What Is a Data Analyst?
Data Analyst will gather, organize and interpret a business’s data to help the company identify its trends, improve its operations, and support the organization’s data-driven decision-making process. Some of the tools used to conduct this analysis are Microsoft Excel, SQL (Structured Query Language), Python, Power BI and Tableau. In addition to conducting data analysis, data analysts will collaborate with the business side of the enterprise to develop solutions to complex business issues.
Data analysts have the potential to provide a substantial amount of value to their organization; therefore, the salary of a data analyst is generally in the range of a competitive rate and is expected to increase over time as the data analyst gains experience in their profession.
Average Data Analyst Salary: An Overview
A variety of factors contribute to the average salary for a data analyst.
- Experience
- Industry
- Geographic Area
- Technical Skills
- Size of Company
While all of these factors impact the average salary, it is the amount of experience that has the largest impact on salary. Below is an overview of data analyst pay scale for each stage of a career as Data Analyst.
Data Analyst Pay Scale by Experience Level
The pay for data analysts is determined by the experience level of the professional. This pay increases as the data analyst becomes increasingly skilled and has more hands-on experience. Entry-level analysts will concentrate on learning the key tools required for data analysis, gaining a solid understanding of the data analysis process, and working closely with senior analysts. The average data analyst salary will be at its lowest at this time; however, this stage of the data analyst’s career serves as a foundation for steady advancement in terms of both responsibilities and expertise.
Entry-Level Data Analyst Salary (0–2 Years)
As a brand new career entrant, the data analyst salary is appealing in comparison to the majority of entry-level employment opportunities available in today’s market.
- The average data analyst starting salary is $50,000 – $70,000.
- Best suited for fresh graduates, individuals changing careers or interning.
- The primary skills needed to succeed as a data analyst are
- Microsoft Excel
- Basic knowledge of SQL
- Data cleansing
- Creation of reports
- Creation of visual representations of data.
At this level of a data analyst’s development, it is critical for the professional to learn how to use the analyst’s toolkit, be able to analyze business data and to lay the groundwork for future success.
Mid-Level Data Analyst Salary (2–5 Years)
As analysts gain experience through working on multiple projects, they have the ability to take on a greater responsibility and earn higher levels of compensation.
- Average salary of a Data Analyst:$75,000 – $95,000/year.
- Typical Responsibilities for an Analyst: Develop Data Models, Create Dashboards, Communicate with Stakeholders.
- Factors Leading to Higher Salaries for Analysts: Advanced Knowledge of Python and R, Advanced SQL Language Proficiency, Able to Use BI Software (e.g., PowerBI and Tableau).
Data analyst pay scale will generally increase, as analysts become more competent in solving complex business challenges without assistance or direction from other analysts or managers.
Senior Data Analyst Salary (5+ Years)
A senior data analyst salary is a result of their knowledge of data analytics, evidence-based decision-making and senior leadership.
- The average senior data analyst’s salary is between $100,000 and $130,000+ per year.
- Senior data analyst responsibilities include strategy development, junior analytics mentorship, advanced data science techniques, decision support to company executives.
- High-value skills include basic machine learning, cloud-based solutions for storing large datasets and building data architectures and business strategy for predictive analytics.
Since senior professionals are frequently responsible for company-wide decisions, senior professionals tend to earn higher salaries than junior professionals.
Factors That Affect Data Analyst Salary Growth
Salary ranges can be quite broad among individuals sitting at the same experience level. The main contributors are:
- Industry – Sectors such as Technology, Financial Services, Healthcare, and eCommerce tend to compensate well above average.
- Location – Metropolitan areas and technology hubs often provide higher pay than rural areas.
- Certification – Earning certificates from reputable organizations increases one’s earning potential.
- Tools and Technology – Mastering analytics and automation technologies increases one’s compensation.
Continuously improving your skillset is the most effective way to reach higher data analyst pay scale.
Conclusion
Data analyst salary progression happens as they gain additional work experience. Therefore, this career provides both a steady income and a reasonable expectation of continued advancement. Professionals who remain invested in acquiring new knowledge and developing additional skills will have multiple options when it comes to advancing within the field.
By understanding average data analyst salary as well as data analyst pay scale, you can set better goals for yourself, plan your professional development accurately, and acquire the appropriate skills when you need them. Data analytics can provide you with long-term job security, significant potential income, whether you are just beginning your career or are looking for a change.
