Exploring the Factors That Affect Business Analyst Salary in 2021
The role of a business analyst is crucial in transforming a business’s strategy into actions and ensuring that the company achieves its goals. With globalization and technological advancements leading to the emergence of new business models, the demand for skilled business analysts has grown, paving the way for competitive salaries. But what factors affect business analysts’ salaries in 2021?
Experience
Experience is a crucial determinant of how much a business analyst can expect to earn. A fresh entry-level business analyst can expect an average salary of $60,000 per annum, but with just five years of experience, salaries can rise to $100,000 per annum. As the level of experience grows upwards of ten years, the salaries can range between $120,000 to $150,000 per annum. Companies value experience, and a more experienced business analyst has acquired unique knowledge and skills obtained throughout their work life, leading to better problem-solving capabilities.
Industry
The industry in which a business analyst works plays a significant role in determining their salary. Business analysts working in industries such as finance, banking, and IT tend to earn more than those in healthcare or public service. According to the Bureau of Labor statistics, business analysts owning certification in finance or banking-related fields earn a higher salary, given that they add more value to the company.
Geographical Location
Business analysts’ location can also impact their salary. The location’s cost of living is a crucial factor that employers consider when determining a suitable salary package. Business analysts working in cities with a higher cost of living, such as New York City, San Francisco, or Washington D.C., earn a higher salary than those working in rural areas or small cities.
Education and Certification
Educational qualifications and certifications are directly proportional to the salary package. Most companies require a minimum of a bachelor’s degree in business administration, information technology, or a related field. However, a master’s degree in a related field significantly boosts a business analyst’s earning potential. Moreover, certifications such as IIBA, CBAP, or PMI-PBA also add credibility to a business analyst’s work and increase their earning potential.
Conclusion
A business analyst’s salary is influenced by various factors such as experience, industry, geographical location, education, and certification. While some are in the business analyst’s hands, others are dependent on external factors such as the industry and geographical location. Maintaining a good track record, updating skills, and obtaining relevant certifications can significantly increase a business analyst’s earning potential. Companies value business analysts’ role in driving decisions towards a better outcome, and that value is reflected in competitive salaries.
