DATA ANALYST SALARY: 2022 Average Salaries

Average Data Analyst Salary
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For the year 2022, the average salary for a data analyst is $66,284 per year in the United States and a $2,700 cash bonus, according to Indeed.com. Truly, data analysts are usually well compensated for their work.

Why is this so? This is because the demand for skilled data analysts to process and interpret data is growing as the amount of data available to businesses grows. They are in high demand. 

By 2025, IBM predicts that there will be over 3.7 million job openings for data professionals, with approximately 40% of advanced data analytics occupations requiring a master’s degree or higher. 

You’ll learn how much data analysts make on average in this article, as well as how experience, industry, location, and job title can affect your data analyst salary. 

We’ll also discuss some techniques to increase your earning potential if you’re interested in starting or advancing your career as a data analyst.

What Do Data Analysts Make?

The average data analyst pay in the United States is $90,000, according to the LinkedIn community. Analysts can earn up to $125,000 depending on their experience, region, industry, and the sort of organization they work for. In addition to your income, you may be eligible for annual bonuses and sign-on bonuses.

The average income for an entry-level data analyst is $116,375, according to the Robert Half Technology Salary Guide 2022. Professionals with extraordinary abilities and expertise in a specific field can earn up to $167,913 each year.

As the table above shows, your talents and experience have a significant impact on the income you can command.

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What Is The Average Salary For A Data Analyst?

According to Glassdoor, the average base pay for a data analyst in the United States in December 2021 is $69,517. 

The median annual salary for a data analyst is $86,200, according to the US Bureau of Labor Statistics, while the midpoint salary for a data analyst is $106,500, according to human resources consulting firm Robert Half.

While the range varies, each of these salary figures is significantly higher than the US average annual salary of $56,310 for all occupations.

As a data analyst, several things will influence your income. Let’s look at a few of these factors in more detail.

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Salary Ranges For Data Analysts 

Salary Ranges For Data Analysts Based On Experience

Your amount of experience is one of the most important aspects that might influence your income. In general, the longer you work as a data analyst, the higher your salary will be.

According to Glassdoor, your experience influences your data analyst compensation:

  • $72,469 for 4 to 6 years
  • $76,050 for children aged 7 to 9
  • $78,360 for children aged 10 to 14
  • 79,309 $79,309 $79,309 $79,309 $79,309

Taking on a leadership position can help you make more money. According to Glassdoor, analytics managers in the United States make an average of $121,232, while analytics directors earn $147,147.

Let’s look at how much a data analyst makes at various levels of experience. A data analyst’s typical career progression in years is as follows:

  • 1-4 years of experience as an entry-level data analyst
  • 5–9 years as a mid-level data analyst
  • 10+ years as a senior data analyst

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Salary of an Entry-Level Data Analyst (4 Years)

Entry-level data analysts earn an average of $41,374 a year, according to Glassdoor. The lowest-paid junior data analysts can earn $27,000, while the highest-paid junior data analysts can earn $62,000.

Salary of a Mid-Level Data Analyst (5–9 Years)

On average, a mid-level data analyst earns $81,415 per year. On the highest end of experience and paymasters, the figure can reach $100,000 per year.

Salary Ranges For Data Analysts By Industry

They may use data analytics in almost every industry to make better business decisions. However, the industry in which you choose to work can affect your compensation. The industries with the most demand for data specialists are also the ones that pay the most on average.

According to The Quant Crunch, an IBM report on the need for data science skills, finance and insurance, professional, scientific, and technical services, information technology, management, and manufacturing account for over three-quarters of data job vacancies.

The industries that pay the highest data analyst salaries gain the most from big data analytics. Technology, healthcare, finance, and government institutions are among them.

Let’s take a look at each one separately.

Technology

Because data analysts play such an important role in computer organizations, most companies pay them well. 

There are several distinct sorts of tech organizations, and your function as an analyst in each will be slightly different, depending on the aims and nature of the work.

There are four types of companies that fall under the category of IT services:

Cognizant, Infosys, and IBM are examples of information technology (IT) organizations that design custom solutions for businesses or provide analytics services.

Companies that generate and sell software to end-users are known as software companies. Tableau, Microsoft, Meta, Google, and other business analytics tools are examples.

Independent software developers who create industry-specific software for other businesses. AWS, Oracle, and Cisco are just a few examples.

Other firms’ analytics needs are handled by analytics solution providers. Mu Sigma, Fractal, Absolutdata, and Tiger Analytics are just a few examples.

The average compensation for data analysts in software and IT services is $65,000, according to LinkedIn. Leading firms frequently pay substantially more.

Healthcare

Every day, the healthcare business deals with tens of thousands of megabytes of unstructured data. Data analysts are needed by hospitals and other healthcare facilities to untangle fragmented data from patient records, clinical trials, and billing details and translate it into actionable insights.

The healthcare industry is growing as one of the leading creators of data analyst positions, with over 35,000 job postings on LinkedIn alone. 

The average income for a data analyst in healthcare is $72,595, which is slightly more than the national average. The following are some of the high-paying organizations.

Analysts in the healthcare field can use data for a variety of purposes, including:

Disease diagnosis is a term used to describe the process of determining the cause of a

  • Drug development
  • Recognizing the dangers to one’s health
  • Recommendation of preventative strategies
  • They deliver prescriptions.
  • Operation of the hospital
  • Creating strategies for individualized care
  • Monitoring after treatment

In addition, privacy and security are two major concerns in healthcare analytics. Building experience in any of these healthcare niches can help you earn higher pay as a data analyst.

Government

Governments at all levels deal with huge volumes of data that must be managed and evaluated in order to create better ways of implementing programs and find inventive solutions to challenges, from infrastructure to transportation, public health, and law enforcement. 

This is why data analysts are employed by numerous government agencies, including the FDA, the Department of Transportation, the Environmental Protection Agency, NASA, the Census Bureau, the FBI, and others.

In the United States, the average compensation for a data analyst is $103,734.

Finance

To stay relevant in the market and fight for profits, financial institutions and legacy banks are relying on data. 

Financial data analysts provide solutions for safeguarding client data, classifying customers, algorithmic trading, identifying fraud, underwriting, credit scoring, risk modeling, lending, and loan appraisal, among other things.

According to Glassdoor, the average income for a financial data analyst is $64,375, although this can rise to $200,000 for individuals with sufficient expertise.

The financial services business is a highly specialized industry. A solid understanding of financial services and a strong analytics foundation will pave the path for a successful career as a financial data analyst. 

Machine learning and predictive analytics knowledge are extremely beneficial for jobs in fraud detection, security, and credit.

Salary Ranges For Data Analysts By Location

The area in which you live might have a significant impact on how much money you can make as a data analyst. Working in a large metropolis such as San Francisco, New York, Boston, or Washington, DC is usually associated with a higher wage (as well as a higher cost of living). 

As more organizations employ a geographically scattered workforce (including remote workers), it’s becoming more typical for them to offer location-based salaries—pay that is dependent on where you work rather than your qualifications alone.

These are the midpoint salaries for data analysts in the following significant US cities, according to Robert Half:

  • $151,230 in San Francisco
  • $149,633 in New York
  • $142,710 in Boston
  • $141,645 in Washington, D.C.
  • $132,060 in Chicago
  • $125,670 in Phoenix

Other Data Professionals’ Salaries

Getting a job as a data analyst could be the first step toward a career in data. As your data science skills and expertise grow, you may transition to a more advanced or specialized role. 

Here is a couple of them, along with their Glassdoor-estimated average US incomes.

  • $77,218 for a business analyst
  • $83,700 for a database administrator
  • $85,690 for a business intelligence analyst
  • $88,989 for a statistician
  • $112,493 for a data engineer
  • $117,212 for a data scientist
  • $118,868 for a data architect
  • $121,232 (analytics manager)
  • $131,001 for a machine learning engineer

What is the Job Outlook for Data Analysts?

As the amount of big data grows, so does the demand for talented data analysts who can turn it into useful insights for businesses. 

Data analyst positions are expected to rise 25% faster than the average for all occupations between 2020 and 2030, according to the US Bureau of Labor Statistics.

The increasing adoption of big data analytics largely spurred this by businesses. By 2025, over 80% of businesses polled for the World Economic Forum’s Future of Jobs 2020 report claimed they would employ big data. 

Data analysts and scientists topped the list of positions with increasing demand across industries in the same research.

5 Ways to Increase Your Data Analyst Salary

There are several things you can do to find a fantastic job and earn more money, whether you are a junior data analyst searching for a foot in the door or a mid-level professional trying to advance your career. 

Here are five suggestions.

Increase your Skill Set

Data analytics is a highly technological subject in which have up-to-date, relevant skills are essential. Learning the most up-to-date tools in the field will significantly boost your earning potential. 

According to an IBM analysis, valuable analytical tools such as MapReduce ($115,907), PIG ($114,474), Apache Hive ($112,732), machine learning ($112,732), and Apache Hadoop ($110,562) are among the most valued. 

You might also learn about Scala, Spark, and D3, as well as cloud services like Amazon Web Services.

Select the Best Location

Large cities such as Chicago, New York, San Francisco, and others pay the most, but they also have the highest cost of living. 

Remote roles may pay less, but they offer the convenience of working from home, which is less expensive and more appealing. 

Calculate the cost of living and state taxes you’ll have to pay if you’re considering alternative employment to evaluate the offer.

Increasing Your Experience

81 percent of data science and analytics roles, according to IBM, require 3-5 years of expertise. You may expand your portfolio by completing freelance assignments on prominent platforms like Kaggle, Toptal, Upwork, and Fiverr, in addition to adding years to your experience. 

If you don’t have any past work experience, these are smart ways to build it while simultaneously earning money on the side. 

If you have a few years of experience, they could be a good opportunity to broaden your horizons in fields other than your day job.

Negotiate Your Job Offer 

When applying for data analyst employment, keep in mind that you want to receive many offers. This compensation data can then be used as leverage to negotiate a higher wage at your dream firm.

According to Glassdoor, 17% of American employees—18% of men and 16% of women—reported negotiating their compensation and earning more money in their current or previous work. You can earn an extra 13%, or up to $8,000, by understanding your market value.

When negotiating your compensation, compare offers and be sure to analyze the total package offered by each firm. In addition to cultural fit, career paths, and mentorship, consider incentives, benefits, and other advantages.

Pursue a New Certification or Degree

Only 6% of data analyst jobs require a master’s degree or more, according to IBM, while 39% of data scientist and advanced analytics jobs only require a graduate-level degree. 

Returning to formal schooling is a possibility, but it is costly. Instead, concentrate on upskilling or increasing abilities through practical, job-focused boot camps and online courses, especially those led by professionals or with industry connections.

Frequently Asked Questions About Data Analyst Salary

Is Data Analytics a Lucrative Profession?

Yes, data analytics is an excellent career choice with high earning potential and several options. Every day, 2.5 quintillion bytes of data are generated. Industries are leveraging data as a result of the data explosion, and data analysts are at the forefront of this trend.

Do Data Analysts Make a Good Living?

Yes, as the need for data analysts increases, so does the pay. Entry-level data analyst jobs often pay over $40,000, with senior roles paying well over $100,000.

What is the average salary for a data analyst?

According to LinkedIn, the typical starting salary for a data analyst in the United States in 2021 is $90,000. According to the US Bureau of Labor Statistics, the median compensation for a data analyst is $86,200, whereas the Robert Half study cites a midpoint salary of $106,500.

Is a degree required to work as a data analyst?

No, you don’t need a formal degree to pursue a career in data analytics. Sign up for complete boot camps. Learn how to navigate the data analytics sector and how to negotiate pay, among other things.

Conclusion

In today’s work environment, there are plenty of options for prospective data analytics specialists. 

The demand for talented data analysts is continuing to rise, as more firms than ever rely on data for decision-making. This also increases the salary for data analyst. 

Consider how you can prepare yourself to get into the sector and develop a successful, high-paying career if you think a job in data analytics is suitable for you.

References

  • springboard.com – How Much Do Data Analysts Make? [Data Analyst Salary Guide]
  • coursera.org – How Much Do Data Analysts Make? 2022 Salary Guide

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