Being an analyst is a great way to start your career in the business world. In this article, we’ll go over what it means to be an analyst, how you can get started in this role, and what qualifications you should have before starting.
What Does It Mean To Be An Analyst?
Analyst jobs are typically found in large companies like banks or insurance companies. The job of an analyst is to review data about a company’s performance and make recommendations for future improvements and changes. This may include things like reorganizing departments or implementing new policies for employees.
How Do You Become An Analyst?
The first step in becoming an analyst is to get your bachelor’s degree from an accredited four-year institution. You will then need to take several courses in statistics and business management while also gaining some experience working in the field of finance or accounting so that you can learn more about how businesses operate on a day-to-day basis. This will allow you to better understand how they operate so that you can offer recommendations that will help them grow their business successfully over time. After completing these requirements, most employers require candidates who want this position at their company must pass through several rounds of interviews before being hired onto their team full-time;
How To Become Analyst
Analysts give guidance to businesses, government entities and individuals on financial and business decisions. An analyst collects data on business performance and develops statistical reports. They identify areas of improvement and create a recommended plan to streamline processes. They review business efficiencies by:
- Determining which data needs tracking to reflect business performance
- Using statistical methods to collect data across business sectors
- Measuring the effectiveness of business strategies
- Writing easy-to-interpret reports
- Developing a plan to improve operational processes
- Working with the management team to implement changes
Average salary
Most analysts are full-time employees, though some may work as independent contractors. Salaries for analysts vary depending on the employer’s industry and geographical location, as well as the employee’s work experience and education level.
- Common salary in the U.S.: $65,261 per year
- Some salaries range from $16,000 to $147,000 per year.
Analyst requirements
Obtaining an analyst position requires some background relevant to the level of the role for which you are applying, including:
Education
Analyst roles generally require a bachelor’s degree in math, business administration, economics, computer science or another related discipline. Analysts work in a variety of industries, and it can be beneficial if your degree is relevant to the field of the job for which you are applying. Taking courses in data mining, calculus, finance, communications, information technology and analytics are helpful for individuals seeking an analyst career path.
Training
An analyst gains training through college courses, internships and entry-level job experiences. College courses allow analysts to learn the basic knowledge and skills necessary to enter their industry. Students can complete internships to practice their analyst theory in a business setting or with a government entity. Many employers will provide brief on-the-job training to new analysts to learn the complexities of their business.
Certifications
Certifications prove an analyst’s knowledge and help advance their career. An analyst can earn varying levels of certifications as their experience level progresses. Four industry organizations offer certifications that analysts commonly attain:
International Qualification Board for Business Analysis
An independent organization establishing standards for business analysts worldwide, the IQBBA currently offers two accreditation levels—Certified Foundation Level Business Analyst and Certified Advanced Level Business Analyst.
A foundation-level certification focuses on the knowledge of business processes, the requirements of analyzing data and developing business solutions. You can earn a CALBA certification after obtaining a CFLBA. The advanced level focuses on management knowledge, including business analysis processes and strategic analysis and optimization.
Project Management Institute
This global association is for individuals working in project, program and portfolio management. Analysts can earn a PMI Professional in Business Analysis in which they must have at least an associate’s degree, relevant work experience and educational hours. They must also pass an exam consisting of 200 multiple-choice questions. Analysts will need to renew this certification every three years.
International Requirements Engineering Board
This independent nonprofit was founded to create internationally recognized standards for requirements engineering. Analysts can earn three degrees of Certified Professional for Requirements Engineering: Foundation, Advanced and Expert.
To obtain the foundational level, you must pass a 45-question multiple-choice exam. For the advanced level, you must earn the foundation-level certification in addition to passing multiple-choice and written exams. For the expert level, you must receive the advanced-level CPRE, submit a written application, pass oral and written exams, and have three years of experience as a requirements engineer in a leadership role.
International Institute of Business Analysis
This nonprofit organization is dedicated to the growth of the business analysis field. You can earn three levels of business analyst certifications in succession: Entry Certificate in Business Analysis, Certificate of Capability in Business Analysis and Certified Business Analysis Professional. Each certification requires you to pass an exam, while the CCBA and CBAP require work and educational hours. For analysts working in an agile environment, the Agile Analysis Certification is available. The Certification in Business Data Analytics demonstrates a professional’s ability to analyze data.
Skills
Analysts are skilled in many areas, including math, technology, collaboration, research and client development. A successful analyst possesses a range of skills and qualities, including:
Mathematical skills
Analysts must be comfortable working with numbers and solving equations using formulas. Knowledge of statistics, calculus, algebra and problem-solving methods are essential components of mathematical skills. An analyst uses math to compile data, review financial performance and measure the success of the business.
Attention to detail
This soft skill requires thoroughly completing tasks and reviewing data. An analyst must consider all aspects of the results given by the data and write detailed reports.
Initiative
This quality involves having the motivation to complete projects independently. An analyst uses this skill daily to manage their workload and multiple projects simultaneously without constant supervision.
Technical skills
Analysts use technology to collect, organize and review data. They also use software, such as Microsoft Office and Adobe Analytics, to prepare reports and presentations of the results of their data.
Research skills
Researching requires a detailed examination of the subject to obtain all facts and data necessary for a complete review. Analysts research the business’ finances, product and overall performance to measure the efficiency of the business.
Communication
The ability to effectively articulate thoughts, data and recommendations in written proposals and verbal presentations is important in strong communication skills. Analysts communicate with their teams daily to collect and share the results of their data to increase a business’ efficiency.
Analyst work environment
Most analysts work in an office setting that requires the following characteristics:
- Sitting at a desk with a computer, sometimes for extended periods
- Attending meetings throughout the day
- Traveling as needed to visit clients or collect data
- Working individually or with a team to collect, analyze and present data
Analysts can work in a variety of industries, such as:
- Finance
- Business
- Government
- Healthcare
- Insurance
How to become an analyst
Follow these steps to become an analyst:
1. Earn an undergraduate degree
Almost all analysts have a bachelor’s degree, where they learn skills to evaluate business data sets. Many analysts continue to earn a master’s or other higher degree to expand their job opportunities and increase their earning potential. Your undergraduate degree could be in economics, computer science, math or engineering.
2. Supplement your degree with computer courses
As analysts work primarily in digital software, computer literacy is an industry requirement. The level of computer usage varies throughout the industry, but the analyst is generally a connection between the company’s IT department and the general business sector. The more computer programming and technical knowledge you have, the more prepared you will be to become an analyst.
3. Familiarize yourself with industry requirements
Some employers may require you to have an industry-specific certification, such as one from the International Institute of Business Analysis. Other industry requirements include critical-thinking, communication and analytical skills. Getting involved in industry-related groups will help develop those skills and provide opportunities to learn the requirements for various analyst niches.
4. Seek internships
Get an early start to your career with an internship during your undergraduate coursework to gain relevant experience. Try to find an internship in a field or industry that interests you. Internships will help you build your professional network and make connections within the industry who could help you find a job after school.
5. Apply for jobs and prepare for your interview
When interviewing for an analyst job, it is important to highlight your education in addition to soft skills like critical thinking. For an analyst role, emphasize your technical skills in complex data analyses and computers. Be prepared to share examples of statistical reports you have compiled and explain what data challenges you had to overcome.
Analyst job description example
Our rapidly expanding startup is seeking a business data analyst to evaluate business performance and delve into key business drivers. You will collect and review statistical data, prepare detailed reports and make actionable recommendations to the executive team. When you join our analytics team, you will work to identify process slowdowns, impacts on product demand and effects of marketing strategies. We also need someone who can review existing business processes and make recommendations of what data to track to develop KPI reports for new business sectors.
The ideal candidate has an intellectual curiosity to examine numerical data, mine the data for insights and translate it into plain English for business use. We are looking for a detail-oriented individual with strong technical skills, including computer programming and coding. The successful candidate will be able to build collaborative relationships across the organization, independently manage tasks and maintain short and long-term projects.
