Demand for Business Analysts is Skyrocketing According to Reports
Business analysts have always been there to collect and analyze data so that managers can make the right decisions. But demand for business analysts has been through the roof lately according to reports. Let’s look at the hard numbers before discussing the trends behind these numbers. Then we’ll discuss the impact this has on the job market and likely future opportunities for analysts.
The Hard Numbers
There are expected to be over nine hundred thousand data-driven decision maker jobs in 2020, while there should be as many functional analyst positions. The biggest difference between these roles is that functional analysts earn about $20,000 a year less than between the decision maker and functional analyst. Reports suggest around 600k data system developer jobs in 2020. There should be around 150k business analyst positions, though not all of these jobs can be filled. There will be almost 50k analytics managers.
The average pay for a business analyst in the United States is more than 80k dollars. Those who earn industry-recognized certifications earn about 10 percent more. Masters’ degree holders earn more than those with only a bachelor’s degree. For example, functional analysts tend to have a bachelor’s degree while decision makers and analytics makers, typically master’s degree holders, earn tens of thousands of dollars more.
Salaries for these professionals have grown at three percent per year for the past several years, and it isn’t expected to slow down any time soon due to the sheer demand for data analysis skills. Furthermore, business analysts see their pay rise rapidly with the amount of experience they have. After two years on the job, they often earn a third more than they did when they first started. Salary tends to max out around a 100k dollars a year. Analytics managers earn about a 160k thousand dollars.
The Factors Driving This Trend
We’re now collecting aggregated data on how people interact with a website, masses of location data on vehicles and customers or the tracking of every piece of equipment in the company. This means there is simply far more data that can be analyzed and that creates a significantly higher demand for business analysts.
It also creates demand for business analysts in new areas. We’ve always needed business analysts tracking customer spending behavior and the business’ own spending. Now analysts are needed to track the wear and tear of equipment and planning predictive maintenance. They’re often required to collect and analyze process data to proactively identify problems before it affects product quality. Others are asked to analyze data to find ways to improve product quality or process efficiency.
On top of all of this, we know that the Internet of Things will result in a greater deluge of data than is already being collected now. This means that demand for business analysts will grow exponentially over the next few years.
How This Affects the Profession Long Term
While business analysts may work with an expanding array of data analysis and business intelligence tools, business analysis is not a skillset that can be automated. This gives business analysts excellent job security. It also means that business analysts must have a fair understanding of IT processes, business analysis tools, and data analysis techniques.
Online colleges like Suffolk University makes it easier than ever to enter the field. They offer one of the best programs in business analytics available. It teaches students how to navigate the firehose of data that’s thrown at you in almost any role you may have in the organization. You learn how to use a wide array of analytical tools and related programming languages. if you want more information about their program, you can learn more here.
While the tools and complex knowledge required to mine the masses of data are forcing many business analysts to invest in advanced education, a number of classic skills remain critical to the job. For example, business analysts must still have excellent communication skills, whether they’re summarizing data to present to a boss or making recommendations to a client. How you perform data analysis and the types of data you may receive have changed, but the need to analyze data and document the methods and results remains the same.
Analysts continue to be well-paid if they can come up with innovative solutions, whether it is reducing rework of defective products or identifying underserved markets and how to market to them. Companies value those who offer cost-effective solutions, and they trust those who can justify their positions. Save the organization money, and they’ll reward you.
Business analysis is a fast-growing area. Unlike many other professions, the roll-out of sensors and automated data collection is increasing the complexity of their work. This leads to increased demand and higher pay rates for them.