Master's in Data Science

How to Become a Business Analyst in 2021

Business analysts help improve business processes (e.g. productivity, output, distribution, etc.) and their solutions are typically technological ones.

Business Analyst Responsibilities

On any given day, a management analyst, also known as a business analyst may be asked to:

  • Establish the objectives and scope of business and IT systems
  • Identify multifaceted organizational problems and devise data-driven solutions
  • Conduct statistical analyses, surveys, training workshops and tests
  • Recommend changes to processes, personnel or product offerings to make internal departments more efficient
  • Invent new systems (e.g. stock control) or alter existing ones
  • Make specific IT recommendations and support their implementation
  • Act as a liaison between management and technical developers (e.g. system architects)

Business analysts have varying degrees of technical know-how. Some tackle each job by employing their know-how in business administration, finance or management. The benefit of this approach is that they can see the “big picture” – the scope of the challenge within the industry. Others come at the problem with extensive knowledge of IT processes.

Note: Although the roles are often merged in small companies, the job of a Business Systems Analyst (BSA) may be much more technical in nature (e.g. coding, designing programs, etc.) than a conventional analyst. When you’re looking at job descriptions, examine the fine print to determine what your tasks might be.

How to Become a Business Analyst

Below are common steps to become a business analyst.

1. Earn a bachelor’s degree

A bachelor’s degree is the first step to becoming an entry-level business analyst. Common programs of study include business, finance, and economics and may help you develop skills in the field. However, some employers may prefer candidates who have earned a master’s degree.

2. Pursue a degree in business analytics, data science, statistics, computer science, information management, finance or economics.

In order to be considered for analytics positions at a management or higher level, however, an advanced degree may be necessary to continue up the ranks. Consider enrolling in a masters of business analytics program to separate yourself from the field and achieve career advancement.

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3. Fine tune both your technical skills and business capabilities.

Common Technical Skills for Business Analysts

  • Statistical analysis software (e.g. R, SAS, SPSS, or STATA)
  • SQL databases and database querying languages
  • Programming skills (if possible)
  • Survey/query software
  • Business intelligence and reporting software
  • Data mining
  • Data visualization
  • Database design

Since new data tools are being invented every day, this technical list is subject to change.

Business Skills for Business Analysts

  • Analytic Problem-Solving: Employing best practices to analyze large amounts of data while maintaining intense attention to detail.
  • Effective Communication: Using reports and presentations to explain complex technical ideas and methods to an audience of laymen.
  • Creative Thinking: Questioning established business practices and brainstorming new approaches to data analysis.
  • Industry Knowledge: Understanding what drives your chosen industry (link) and how data can contribute to the success of a company/organization strategy.

4. Consider additional certifications for business analytics professionals.

You may earn certifications to help demonstrate your capabilities core skills, learn about latest variants of software and technology, or branch out into a specialization. Certifications may help if you are interested in advancing to a new position after you’ve been working for some time. Employers may not necessarily require specific certification, but your chosen certification may signal competency in a specialty area.

An Interview with a Real Business Analyst

We interviewed Chris Hunter, Business Analyst at Monster Worldwide, to find out what it takes to succeed as a business analyst. Read on to learn about the pros and cons of being a business analyst, their impact on Monster’s overall success, and Chris’s advice to students.

Q: What are the top pros and cons of your job?
A: The best parts of my job are the people I work with and the dynamic nature of the position. One day you may be looking into customer data points, and another you might be focused on fresh data sets; however, solving unique problems keeps it fun. The biggest con is our software, which doesn’t provide the ideal seeker behavior data necessary for the best analytical insights. There are times when a customer may want particular data that we can’t currently provide, but we take on that challenge and find clever answers to their needs. The real excitement of being a business analyst is learning each customer’s unique needs and proposing the most informed decisions on their behalf.
Q: What kind of impact do business analysts have on Monster Worldwide’s overall success?
A: At Monster, we have four business analysts supporting the entire US. More specifically, my role supports the NWW (North West/West) and SW (Southwest) regions’ customers. We constantly work with our customers to show their data patterns alongside product performance, providing insights geared toward improvements on all fronts. Whether good or bad, data will always show the true story of success. By showcasing both positive trends and areas of potential improvement, Monster’s customers appreciate an honest partner, which has a huge impact on our bottom-line.
Q: Which skills or programming languages do you most frequently use in your work, and why?
A: Other than some light SQL work, the position doesn’t require in-depth knowledge of programming languages.
Q: Has your role changed over time? How do you see it evolving moving forward?
A: Within the past year, our team was realigned to drive more success by gaining access to more data, thus providing a roadmap to discover new tools for our analyses. The massive amount of newly available data has definitely shaped this role, which is still evolving. I personally expect more data-driven evolutions, especially within data size/ scope, reporting tools and visualizations. All three areas will grow customer insights, understand seeker behavior better and provide exciting conclusions allowing better professional suggestions.
Q: What kind of person makes the best business analyst?
A: A key trait of any successful business analyst encompasses the ability to think outside the box. We can often suffer from “tunnel vision,” so the need for creative takes on compelling visualizations becomes important. Another key trait is the ability to conduct quality research. Not all answers are readily available within your company, so researching data from BLS, Wanted Analytics, and Staffing Industry Analytics, for example, can dramatically assist your work. Overall, the ability to analyze – understanding, extracting and piecing together data necessary for your solution – will make or break any business analyst.
Q: What advice would you offer students preparing for a position as a business analyst?

A: The best advice I can offer to interested students is to ask any and all questions early. Our job is to understand data, explain patterns, showcase trends and offer insights, all of which can be a complex process, so ask away!For students and recent grads, I highly recommend finding a job via Monster! But in all seriousness, finding the right business analyst role requires patience and diligence. I assumed I’d find work right out of school, but it took more than half a year to find this ‘monster’ opportunity.

Lastly, students should access great resources, such as industry books, trade articles and more, to understand the variety of roles that they may find themselves in. Likewise, keeping up on trends, data environments and new methods will always add to your skill sets. Whether through a certification, class or conference, always be hungry to keep learning and growing.

Business Analyst Salary in 2021: How much does a business analyst make?

According to 2019 data from the O*NET, Business Analysts make an average of $85,260 per year. Below are some salaries for a few similar jobs, according to the BLS.

Business Analyst

Average Salary for Business Analyst $85,260
Minimum: $49,700
Maximum: $154,310
Total Pay Range: $49,000 – $154,000

Financial Analyst

Average Salary for Financial Analyst: $85,660 per year
Minimum: $52,540
Maximum: $167,420
Total Pay Range: $52,540 – $167,420

Budget Analysts

Average Salary for Budget Analysts: $76,540 per year
Minimum: $50,230
Maximum: $116,510
Total Pay Range: $50,230 – $116,510

Business Analyst Jobs

O*NET reports from 2019-2029, the career field of business analysis, will experience 8% growth, much faster than the national average.

There are a number of job responsibilities that a business analyst in an organization must be prepared to handle. From interpreting trends in sales and purchasing to making predictions about future consumer behavior, business analysts are prepared to use data to help businesses and organizations succeed. Working in tandem with various departments, such as market research, product development, and top-level management, business analysts are an integral part of a corporation’s overall strategy – both internally and externally.

Business Analyst Professional Organizations

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Last updated: August 2020