There are more than 33.2 million businesses in the United States, and Business analysis has turned out as an ever-growing sector. Business analytics aims to operate on a ‘Minimal cost and high productivity’ tagline. Business analysis can help enterprise owners save hefty amounts on resources and other activities when rightly implemented. As a result, most enterprises are looking to hire business analyst professionals who can assist in aligning their business goals with available monetary funds. Due to high demand, even business analyst's entry-level salary is considerably surging as most business owners readily offer a competitive salary package for business analysts.
Who is a Business Analyst?
A business analyst is a professional who manages all elements of a business, from handling its processes and systems to improving the overall decision-making capacity. Business analysts examine and analyze a business’s current model and suggest modifications based on recent trends.
Business analytics involves combining data analysis and business studies. Business analysts work closely with stakeholders and business leaders to understand their short and long-term goals. Later, they work on facilitating these goals, ensuring that they fall within the range of the available resources. Like data analysts, BAs also work with data sets to understand client requirements and implement them in their work plans. Here is a list of roles and responsibilities of a business analyst,
- Comprehend business models
- Examine the current status of a business
- Build new features or business solutions
- Implement the solutions considering budget and forecast
- Monitor the outcome of newly implemented solutions
What is the Average Salary of a Business Analyst in the USA?
Business analysts across the world get paid at a different scale. The salary ranges of a business analyst can differ based on various factors like the experience and skill set of the applicant or the company size.
However, the average business analyst salary in the US is $89,500 annually. This figure is structured into a base salary of $86,234 and a cash bonus of $3,500. The lowest pay range you can expect is $58,360, and a business analyst's highest annual salary limit is $1,27,422.
Business Analyst Salary based on Experience in the USA
The business analyst's average salary in the US changes with the experience level of the applicant. Based on the years of on-site experience the candidate holds as a business analyst, most companies set a different pay range for each experience level. They are,
1. Business Analyst Salary at the Entry level:
As fresher in the field with no practical experience or work history with companies, applicants primarily land entry-level jobs. This is the minimum slab based on experience.
The entry-level business analyst salary in the US is $59,092, which is the annual base pay. The pay range for entry-level business analyst jobs ranges between a minimum of $45,000 and a maximum of $78,000.
2. Business Analyst Salary at Intermediate level:
After a considerable amount of experience in an entry-level job, candidates can switch to the next level. Intermediate-level jobs are for applicants with at least two or three years of on-site experience in the field.
In the US, intermediate-level business analysts can expect an average annual salary of $76,184 (base pay). The highest salary under this level is $1,12,000, and the lowest is $53,000.
3. Business Analyst Salary at Senior level:
An experience in business analytics for more than 4 years will help you explore jobs at the senior level. With increasing levels, the requirements vary too. Business analyst jobs at this level demand a bachelor’s degree in most cases.
The senior business analyst's salary in the US is $1,05,989 (base pay) on average. The pay range lies between a minimum salary of $95,000 and a maximum salary of $1,20,000 or more.
4. Business Analyst Specialist Salary:
A business analyst specialist is practically a different level of business analysis where you will be in charge of all business elements and responsible for the results. The business analyst specialist position demands a degree, exceptional technical domain knowledge and an experience of more than five years. The expected average pay for a BA specialist in the USA is around $1,00,312 per annum.
5. Business Analyst Consultant Salary:
This is the highest degree of business analyst and requires a minimum on-site experience of eight years as an analyst. A business analyst consultant no longer operates on building strategies at work. Instead, consultants deal with offering advice on building them to business owners.
The average annual salary of a business analyst consultant in the US is $94,700. The pay scale ranges between $90,000 to $2,38,663.
Factors Affecting the Salary in the USA
In the quest of landing a job, the first aspects you will look up to are the salary package and professional growth scope. However, the salary package of any job tends to vary due to multiple factors. And this is no exception in the US. Only the factors affecting the business analyst's average salary in the US may differ. Here is a list of factors that can decide your salary in America,
In the US, the federal income tax is imposed on a variety of incomes which primarily includes salary. The basic rule is higher the income figure, the higher the tax imposed. Other taxes that can affect your final CTC are Medicare tax, Social security tax and so on.
The average total tax (marginal) you can expect in cities like New York is around 8.6% to 11.57%. For instance, if you look for jobs with an entry-level business analyst salary of $10,000, your final CTC will range near $9,000 (approx).
Apart from this, the state tax may also imply and vary between various states within the USA. For instance, state taxes on incomes and salary in Pennsylvania is a flat 3.07%. On the other hand, states like Texas have no state income tax. Thus, the geographical location of the company can majorly impact the final salary you receive in hand.
The area of location of the company matters the most when it comes to deciding the pay scale range. Areas with a higher cost of living also let companies offer higher pay rates. Another way location can interfere with different job profiles is paid differently at various locations.
For instance, a city or state can be paying high for a business analyst but not a civil engineer. Employees working in the best-paying cities for a business analyst can enjoy the luxury of a 20-30% salary difference compared to those who work in other locations.
3. Size of the company:
Based on the company size, enterprises can be classified as startups or established setups. The obvious pay difference occurs between these two sizes. Huge, well-established companies tend to offer higher average entry-level business analyst salaries and job stability.
Skills that Impact the Business Analyst Salary in the USA
While you look for business analyst jobs, you will find some skills that define a perfect candidate. These are the skills that also hugely impact the salary range, demanding applicants to master them. You can easily get hold of these skills by taking up Business Analyst courses.
Here is an overview of business analytics skills you must master to get access to a high business analyst salary.
1. Technical Skills
The very first skill set most top recruiters to look for falls on the technical side, and some vital skills can impact your pay offer. In today’s world, analysts tend to deal with datasets online on computers and are required to be equipped with programming language knowledge. A business analyst is no exception. Having programming skills will let you stand out among the crowd. The most desired programming languages to be known by a business analyst are Python, Oracle, R, etc.
Knowledge of statistics and probability is a must-have skill for business analysts as their work revolves around this domain. Supplied with ample data, an ideal business analyst can crack the code to arrive at solutions using statistical analysis and probability figures. Candidates with a combined skill set of programming and statistics tend to get paid higher in the US.
2. Communication Skills
As a business analyst, you will have to work, collaborate in teams, lead one or even work closely with stakeholders. Business analysts also work with clients and provide business solutions after several rounds of discussions. In such a scenario, business analysts must be understood aptly. For this, they require to master conveying terms and ideas clearly, which is possible with impeccable communication skills.
3. Analytical Skills
As a business analyst, one must possess analytical skills that include predictive analysis and logical thinking. An analytical mindset will assist business analysts in predicting results for a prospective business solution they propose. This is helpful when you have to convince clients as they are more concerned with the results rather than the process.
4. Decision-Making Capabilities
Decision-making is one major skill that massively impacts the salary of a business analyst. Though it is a non-technical skill, candidates without this skill cannot survive the race. It is because decisions made by a business analyst directly impose an impact on the business in most cases. The impacts can range from minor disruptions to major ones where the competitors can outgrow you in no time!
5. Managerial Skills
Management skills encompass everything from identifying the problem point and planning the business solution to evaluating the results. This skill set is a mix of all the above-mentioned qualities. So, its importance cannot be overlooked while considering the impact on the salary it can cause,
City-wise Business Analyst Salary in the USA
The average business analyst's salary in the USA depends upon various factors and can vary based on several factors. The difference in pay scale occurs especially between cities and states. Variations can occur due to the cost of living in a particular area, the complexity of an enterprise in a specific city, etc. So, to make your journey easier, we have crafted a list of the top ten best-paying cities in the US,
AVERAGE ANNUAL SALARY (USD)
St. Louis, MO
New York, NY
Top Paying Industries for Business Analysts in the United States
The demand for a business analyst is prominent across all domains. Business analytics is a vital element in industries like Finance and Insurance, IT, Healthcare, Social Services and so on. However, several industries offer a higher pay scale compared to others.
So we have made a list of the top-paying industries in the US which have a demand for business analysts,
1. Information technology:
IT business analysts are popularly in demand due to the growing industry. Business analysts in this domain monitor the quality of IT services and arrive at solutions that revolve around this area involving technology. The average IT business analyst's salary entry level is near $75,000. IT business analysts at higher levels make $85,000, which is the median salary in the USA. The maximum pay of an IT business analyst in the US ranges near $89,281.
2. Finance and Insurance:
Finance business analysts deal more with the monetary cycles. Major responsibilities include managing the cash flow, rate changes and other financial statements. They have to deal with financial models and derive finance forecasts from helping financial organizations align with their goals. Finance business analysts have a great growth scope as the industry is ever-green. The average annual salary of a finance business analyst is $76,520. The range falls between $69,228 and $85,709.
Business analysts with knowledge about how healthcare enterprises and services operate can make a career as a healthcare business analyst. Analysts in this industry are more oriented towards boosting the visibility and client experience of a healthcare business by examining and altering elements like pricing, financial activity, etc. Healthcare business analysts earn an average annual salary of $91,445.
4. Government and public sectors:
Several public sector banks and government financial organizations also hire business analysts in the US. Their role greatly varies in what government sector they operate. However, government business analysts enjoy the luxury of higher salary scales. That is, the average US government business analyst salary is around $94,000 per year, which was also estimated to be 17% higher than America’s national average.
Business Analyst Salary in Top Companies in the USA
The average salary of a business analyst in the US also majorly depends on the company you choose to work in. Though business analysts are in demand across all domains and almost every enterprise hires for one, the pay scale may vary slightly. On that note, here is a list of the top fortune companies that require business analysts and what they offer,
AVERAGE ANNUAL SALARY (USD)
Demand for Business Analysts in the USA
The business analyst jobs entry level salary falls near $60,000 and points towards a high demand for this job profile in the US. A recent study suggested the same, where business analyst job growth was estimated to be between 7 to 25% by 2030. The US has also been listed among the top countries that have a massive demand for business analysts. There are more than 33 billion small businesses in the US, and the number is still growing. With the growth of businesses, the demand for business analysts is also surging substantially. Businesses that are growing in the US include ones from domains like Healthcare, Information Technology, Personal services, etc. Thus, business analysts in such industries are in higher demand.
Certifications to Increase the Compensation
If you are a fresher with no on-site experience in business analytics, a certification can help you get access to getting a higher entry-level business analyst job salary. You can also take Business Management Training to add up your exposure. However, there are several globally-recognized certifications you can get, which will increase the compensation by at least 11%. Here is a list of the top business analyst certifications,
The CAP certification stands for Certified Analytics Professional. CAP gives you an accreditation for being capable of comprehending, analyzing and implementing information systems. Being CAP certified tells the recruiter that you have an adept knowledge of GRC, which stands for Governance, Risk and Compliance. This makes CAP the basic certification for all analysts. A CAP certification can cost you $599.
The CBAP Certification is an IIBA Certified Business Analysis Professional. This certification best suits candidates with an existing experience in the business analytics field. CBAP-certified professionals can enjoy 13% higher compensation. It enhances your capacity to work on complex business models and projects. The exam fee for cracking CBAP is $350.
If you are looking for a hike in business analyst salary entry level, ECBA is the best choice. It is also an IIBA certification and stands for an Entry certificate in business analysis. The exam cost of ECBA ranges near $150.
Being ECBA certified indicates that you are ready to take up business analytics knowledge and have cracked the basics. Candidates with no prior experience and an ECBA certification are considered to be ready to start practicing business analysis.
The United States is one of the top countries offering a high median salary for business analysts. Business analysts of all levels can enjoy job security and financial and professional growth in the USA. As a fresher, you may find the business analyst salary entry level to vary with several factors mentioned above. However, you can consider the vital factors and start upskilling or get a certification to work as a business analyst in your dream company!