Business Analyst Salary: How Much Do Business Analysts Make?

This article will explore how much Business Analysts make in 2023, which is determined by factors such as industry of employment, location, experience, and education.

What is a Business Analyst?

Business Analysts work with data to collect business-related insights to provide their organization with recommendations for improving structures, procedures, and policies. They research how a company operates to have the necessary information to suggest new business approaches to improve efficiency and practices, increase revenue, and minimize losses. In addition to suggesting new approaches that will streamline business operations, Business Analysts also look for issues that may surface within various departments within an organization pertaining to IT processes, staff development, and organizational structures. This often entails analyzing an organization’s services, products, and systems.

Both large and small businesses seek new methods for improving efficiency and reducing costs. A Business Analyst’s role is to document an organization’s business models and processes and how successfully they integrate with technology. They then propose options for streamlining these processes across departments to improve employee productivity and the organization's performance.

Business analytics will be a popular profession in 2023 and beyond. As businesses continue to expand and evolve to more effectively meet clients’ and customers’ needs, Business Analysts play an essential role in providing them with data-driven options for solving problems, creating new goals, and establishing outcomes that extend into the future.

What Affects Your Pay as a Business Analyst

Regardless of industry focus, Business Analysts devote their time and efforts to finding ways for their organization to operate more smoothly. Your salary as a Business Analyst will likely depend on several variables, such as educational level, job function, industry focus, location, company size, and experience. 

Education

Typically, those who wish to work as a Business Analyst hold a bachelor’s degree in business administration, business studies, information technology, or a related discipline. In addition, some pursue advanced degrees such as an MBA, which can lead to better employment options and higher pay. 

Some aspiring Business Analysts also seek certifications from the International Institute of Business Analysis. These certifications are industry-recognized and are achieved by passing an exam. Receiving certification in business analytics is especially helpful for those with only a bachelor’s degree, as it shows employers that a job candidate has acquired a body of knowledge specific to business analytics. Three certifications are currently available: Entry Certificate in Business Analysis, Certification of Capability in Business Analysis, and Certified Business Analyst Professional. In addition, more specialized certificates are also offered in business data analytics, agile analysis, and cybersecurity.

Experience

Like any other profession, experience can significantly influence a Business Analyst’s job prospects and salary. For those who don’t have prior experience working as a Business Analyst, it’s possible to find jobs in this field. However, you’ll need to show employers that you have acquired the necessary skills to analyze data and provide business-driven solutions based on your findings. This may involve showcasing other relevant skills, such as experience with Excel or SQL, data visualization training, or problem-solving skills. In addition, some aspiring Business Analysts begin with internships or a lateral junior position in a field like accounting or finance to gain valuable training. You can then transfer these skills to an entry-level position as a Business Analyst.

Entry-level positions are also available in business analytics for those with little experience in this field. These positions are often listed as “Junior Business Analyst” on job sites like Indeed or Glassdoor. These positions are generally available to applicants with three or fewer years of experience. 

For more advanced Business Analyst positions, employers generally require three to five years of experience, if not more. With more experience typically comes a higher salary. 

Industry

Another determinant of pay rate in business analytics is the industry of employment. For the most part, larger corporations offer higher pay to employees than smaller businesses. For example, a large tech firm will probably offer more competitive salaries than a small nonprofit. Business Analysts who work for Intuit earn an average of $131,000 in 2023. In contrast, Glassdoor estimates the average salary for those who work in business analytics at a nonprofit to be between $44,000 and $91,000, which is significantly less.

Location

Location is another factor that determines a Business Analyst’s salary. Most major metropolitan areas offer higher salaries to offset a higher cost of living. In 2023, the cities that offer the highest pay rates for Business Analysts are Houston, Chicago, and Washington, D.C. 

Specialization

Business Analysts who have acquired specialized or in-demand skills are often paid more for their work than others who have more general training:

• Business Intelligence Analysts make about $87,000 a year.
• Business Systems Analysts earn approximately $93,000 annually.
• Business Process Consultants can expect a yearly salary of around $106,000.

Pay Range for Business Analysts

According to Glassdoor, the average pay for a Business Analyst in the U.S. in 2023 is nearly $96,000. This number includes the national average salary of approximately $74,000 and additional monetary compensations, such as profit sharing, bonuses, and commissions, totaling over $21K. Indeed.com places the national salary for a Business Analyst at $80,000 annually, with an additional $4K of compensation in yearly bonuses.

In addition, salary ranges may vary depending on the employer. For example, Business Analysts at Deloitte earn about $86,000 a year, whereas those working at McKinsey & Company can expect to earn over $100,000 annually. Business Analysts employed by Google earn approximately $113,000 a year, and those working for Fannie Mae can expect to make upwards of $131,000.

Highest-Earning Job Titles for Business Analysts

In 2023, the highest-earning Business Analyst jobs are Business Process Consultant and Business Development Director. Business Process Consultants who focus on business processes earn an average salary of $110,000. Those who work as Business Development Directors, an executive-level position, can expect to make an average of $195K annually.

Learn More About Business Analytics by Enrolling in Hands-on Classes

If you’re interested in pursuing a career in business analytics, now is a great time to brush up on your skills. A variety of courses are available for beginners as well as more advanced students. Noble’s Business Analyst Certificate is a great learning option for any aspiring Business Analyst. Relevant skills like data analysis, Tableau, Excel, and SQL are covered in this hands-on program. Those enrolled in this intensive course can choose whether to study online or in-person in Manhattan. This class comes with the option of a free retake for learners who wish to revisit course material. 

Noble Desktop's Classes Near Me tool is an excellent resource for locating business analytics classes near home. You can use it to search more than 250 live online and in-person business analytics courses in topics such as SQL, PowerPoint, and Excel for Business, among others.