Is business analysis a high paying career?

The Business Analyst position is considered to be popular and there are many job opportunities in this sector. Almost all kinds of organizations require a Business Analyst at some point in their trajectory. 

There is usually always a requirement for Business Analysts and the number of job vacancies have been increasing over recent years for this position. 

Important questions that need to be answered is whether Business Analysts are paid well and what are the contributing factors that determine the level of salary for a successful Business Analyst?

Let us try to answer these questions with the help of the following article.

Experience:

Like all job positions, the level of salary is directly proportional to the level of experience and expertise a Business Analyst candidate has.

If a candidate has a higher level of experience, then in most cases they can determine and negotiate their salary for their skill sets. On the other hand, if a candidate has only recently completed their education, the salary for the candidate would depend more heavily on the organization they wish to join, rather than negotiation alone.

For Business Analysts in the United States of America, the average starting salary is around $70,000 per annum and would be expected to increase according to the experience and skills the candidate gains.

For seasoned Business Analysts with a higher level of experience, the salary can reach up to $100,000 and beyond per annum, according to the organization.

There are also many Fortune 500 companies that provide a higher level of salary for the right candidate.

Skill Sets:

Even though experience plays a major role in determining the salary for the Business Analyst, the skill sets of the candidate should also be taken into account when determining the salary.

To negotiate a higher salary, the analyst needs to update their skills according to the market needs. Like any other job positions, Business Analysts are also required to have all-round skills and should have a full understand the operations of working of the business.

Can it be said that Business Analysts are well paid?

Now, let us attempt to answer the most important question; do Business Analysts get paid well?

The answer is both yes and no. 

If we look at the broader picture and view the market as a whole, there is more supply than demand.

Every year there are thousands of graduates looking for a Business Analyst position, this imbalance naturally reduces the salary prospects for these fresh graduates.

When we consider the tuition fee paid by these new graduates, then the obvious answer is they are not getting paid as well when in entry level positions.

However, when looking at long-term opportunities and scope for growth, we can say yes for the above-mentioned question.

As we said earlier, there are many reputable organizations who are looking for the right candidate for the Business Analyst position. With the right experience and right skill sets, it is possible for a successful candidate to achieve a position with a high-paying salary.

Not only in business organizations there is also scope of work in other industries like tutoring. So, an analyst with a high level of skill sets can earn a good living as a Business Analyst.

The role of Business Analyst and Project Manager have been considered to be interchangeable terms in the past due to the overlapping responsibilities.

However, more recently, companies have differentiated the scope and responsibilities of each role. The scope can vary within each individual company. 

Some companies still use Business Analysts as Project Managers due to budgetary reasons. We are unable to draw a firm line between these two roles within certain companies. Many Business Analysts who have years of experience within their role desire to change their career and become out and out Project Managers. 

They may feel overqualified in their role, or they may want to learn and earn more in another challenging role. To those people, a Project Manager role is often considered the next logical step in their career progression. Let’s look at the overlapping qualities and responsibilities of a Business Analyst and a Project Manager.

Business Analysts serve an important purpose in an organization. They are responsible for identifying problems, analysis of said issues, evaluating the solutions, sharing their insights with the cross-functional teams, recommending suitable solutions and presenting it to the relevant departments and stakeholders of the company. 

Business Analysts need strong analytical and communication skills, as well as interpersonal experience. A competent Business Analyst must have extensive problem-solving familiarity and a vast industry knowledge. Through their diverse skills, they must ensure that their solutions are implemented with the correct approach going forward. 

Their scope of responsibilities go well beyond a particular project and they have to ensure that business runs without any disruption. 

Project Managers, on the other hand, are responsible for initiating the project, planning it perfectly for successful completion, executing the plan and overseeing it, and then finally closing the project.

Their responsibilities are restricted only to the project but the process which they go through to finish a project requires responsibilities that are similar to a Business Analyst. 

In order to complete a project, Project Managers need to build a team, recruit suitable human resources, assign tasks to each of them and make these tasks achievable. Further to this, they have to monitor and evaluate the completed tasks on a regular basis to reduce the risk of errors. 

They are expected to lead and influence the team without authority. The decisions and solutions they make should be rooted in deep analysis of a project. 

Now that we know the roles and responsibilities of a Business Analyst and a Project Manager, let us look at some of the skill sets that overlap with each other. 

• Analytical skills – both the roles require analytical skill to identify the problems and provide suitable solution
• Communication skills – communication is essential for the two roles, as both have to interact with the concerned teams and relevant departments.
• Managing and presenting to stakeholders – Business Analysts and Project Managers have to meet up with the stakeholders of a company, and effectively put forth their idea to complete the tasks successfully. 

Conclusion:

In conclusion, Project Managers have to gauge the progress and ensure that the objectives of the project suit the overall business objectives. 

Business Analysts focus on improvements to business and on strategy development. A Business Analyst can manage various aspects of a project, but they would need to upgrade their skills and should look to get a proper certification in Project Management to take on this role. 

Occasionally, it is possible to interchange the usage of Business Analysis and Change Management in our conversations. However, there are notable differences in both these positions, each of the positions has its own goals and definitions.

It is not necessarily immediately obvious the differences between the two roles, but both Business Analysts and Change Managers are essential for a successful organization. 

Will we attempt to show in this article the notable differences between the two roles.

Goals:

A Business Analyst is an employee who analyzes the business processes in an organization and proposes solutions to any issues or problems for the betterment of the organization.

On the other hand, when it comes to Change Management, the major goal of the management team is to propose changes that would affect the whole organization according to the business environment and practices.

Change Management makes sure that the business does not become complacent and is always updated with the innovations in the market. Management is expected to think long term and to suggest and perform changes to the organization.

A Business Analyst’s goals are much broader and involves the day-to-day work of the business. Here the analyst would collate the day-to-day activities of the organization and implement solutions according to the need.

An organization could depend on a Business Analyst for its day-to-day operations and it can take the advice of Change Management for future course of action for the business.

Way of working:

There is also a great deal of difference in the way both the Business Analysts and Change Management operate.

A Business Analyst looks through the inefficiencies within the business operations and would be expected to provide solutions to solve the identified vulnerabilities within the operation. 

On the other hand, a Change Management team would look at the operations of the business and compare it with the prevailing market conditions. If the Change Management team discovers if there is any change required for the organization, then the team would propose it to the organization.

Skills Required:

Skills required also differ in both these job positions, within business analysis, the analyst needs to have an eye for detail and should have good investigation skills to determine problem areas or issues within the business.

Whereas, in a Change Management, the team member should have extensive knowledge of the market conditions. The team member should have the skills to think for the long term and should be able to assess and forecast the impact of the proposed changes to the organization.

Scope of the Job:

Both of these roles offer good scope for growth within an organization, but there are still some minor differences in terms of salary and growth market.

The average pay for an entry level Business Analyst in a reputed organization is $70,000 per year and the year-on-year growth percentage for the job stands at close to 10%.

Whereas, the average pay for an entry level Change Management team member is around $90,000 and the growth rate in this industry is around 5%.

We can see that the Change Management has an upper-hand in salary, but still there is a lot of room for growth within the Business Analyst position.

If you are interested in the Business Analyst role you should prepare for interview questions. Check out this bank of questions and see how you get on

For any type of work, certification gives credibility for the professional and the same applies for becoming a Business Analyst. When hiring Business Analysts, in addition to experience, recognised certification is also required by a lot of major Multi-National Companies (MNCs).

So, it is important to know about the best Business Analyst certifications available. Before choosing a certification course, you must understand what the course provides for the betterment of your business skills.

This article will attempt to explain the best certification courses for a successful Business Analyst.

IIBA Certified Business Analysis Professional (CBAP):

CBAP is a certification provided for Business Analysts with extensive experience in this field. The certification is issued by IIBA (International institute of business analysts), which is a non-profit organization that serves the field of business analysis.

Certification Requirement:

• 7500 hours of Business Analysis experience within the last 10 years.
• In this 7500 hours, 3600 hours (900*4) of experience should be in 4 of the 6 BABOK Guide Knowledge Areas.
• 35 hours of professional development in the last 4 years.
• At least 2 references.
• Agree to terms and code of conduct
• A successful passing grade on the exam.

There is also an online option available to take this certification exam, so anyone from any part of the world can get this certification, if they can fulfill the above-mentioned requirements.

PMI Professional in Business Analysis (PMI-PBA):

PMI-PBA certification is suitable for Business Analysts with a medium level of professional experience. With this experience, they have the ability to jump start their career and can give further credibility to their skill sets.

Compared to CBAP, the requirements for this certification are considered easier to fulfill. The requirements for this certification are:

• Secondary degree (high school diploma, associate’s degree)
• 60 months of business analysis experience
• 35 contact hours of education within business analysis

(Or)

• Bachelor’s degree or the global equivalent
• 36 months of business analysis experience
• 35 contact hours of education in business analysis

A candidate has to earn at least 60 professional development units (PDUs) in the PMI-PBA exam to get the certification. The certification is recognised within places like Europe, UK, USA, India, China and also in other parts Asia.

Business Analyst Master’s Program by SimpliLearn:

SimpliLearn is one of the most popular online platforms and if you are looking for a certification with good online course materials, then this certification would be worth consideration. 

There are over 90+ hours of online videos and there are also real-life projects which can give a glimpse of the responsibility of  a Business Analysts position.

Unlike the other two certifications, a business analyst certification provided by SimpliLearn does not require any experience. Candidates with a bachelor’s degree in any discipline can attend this course.

The course is designed perfectly for beginners and it is easy to follow with a defined learning curve.

The course tries to cover almost all major parts of business analysis like analyzing data, SQL querying, understanding business transactions and many more.

Should you be looking to start your career into business analysis then you can consider the online masters program provided by the SimpliLearn. It can give both credibility and skills to become a professional Business Analyst.

Certifications are not all you need to become a business analyst. You also need the experience and good interview skills. Check out these Business Analyst Interview Question and Answers for help in securing a new role

Switching roles within the company has become quite common recently. IT industries are evolving every year, and they require even more manpower to handle the various aspects of software development. 

Scrum master position comes under agile software development, which focuses on setting a goal and developing a new software. 

Since agile software development is gaining in popularity, many Scrum Masters are required. Either people with knowledge about scrum are recruited or sometimes people with different responsibilities within the team take up the role as a Scrum Master. 

So, who is a Scrum Master? What do they do? And can anyone with the existing responsibilities within the company take up the role as a Scrum Master?

Whilst the title of the role may have the word “master” within it, this doesn’t mean that the Scrum Masters are automatically considered as Team Leaders. They typically don’t have a leadership role, rather it is usually referred to as a “servant leader” role. 

They act as an intermediate between Developers and Product Owners. The Scrum Masters are a facilitator, an adviser, and a guide to the team that works with him or her. 

The main objective of the Scrum Master is to keep up the Scrum Team’s effectiveness. Their responsibilities include:

• Training or coaching the Scrum Team.
• Conduct daily meetings with the team to review the progress.
• Product backlog is controlled by the Product Owner. It records all the duties that the Scrum Team has to complete during a project. The Scrum Master acts as a facilitator and helps the Product Owner to modify the product backlog based on the updates provided. 
• Helping  the team to be productive and removing obstacles that prevent work from being completed efficiently.
• Teaching and providing their knowledge about scrum work to the team.

The role of the Business Analyst is to identify problems in the business, provide technical solutions, and implement solutions to facilitate the growth of the business. 

They must keep the team updated with their insights, provide improvements, and regularly communicate their strategy with the stakeholders and the relevant teams. Occasionally, the Scrum Masters have a Business Analyst in their team. 

Business analysts could hold the responsibility in agile software development as a product owner. If they are a product owner, they control everything about the product backlog. Such being the case, it would be too many responsibilities for a business analyst to also become a scrum master within the same team. 

Common skill sets that a Scrum Master and a Business Analyst share are communication, interpersonal and listening skills, and facilitation. 

Despite sharing a few common skill sets, the Business Analyst cannot be termed Scrum Masters for the following reasons: 

• Scrum Master only focuses on improving the Scrum Team.
• Business Analysts can be product owners, and deal with business and strategy, which is outside the scope of Scrum Team.

On the whole, their main domains of responsibilities differ. Also, when compared to the Project Manager role, the Business Analyst has less in common with the Scrum Master role. It would not be difficult for a Business Analyst to become a Scrum Master but it would require further training and certification should a candidate wish to progress their career to a Scrum Master. 

The main role of a Business Analyst is to identify problems within the business, provide achievable solutions based on the data, and contribute to the growth of the company. 

Business Analysts play a crucial role in business development. This role is considered to be a new or modern career in more recent times however, the presence of Business Analysts in a company has quickly become indispensable. In this article, we will endeavour to understand about the role of Business Analysts and why they are considered an asset by companies all around the world. 

Why do companies need Business Analysts?

Problems and risks become part and parcel of every business and it is inevitable that issues will arise. But if companies keep focusing on solving problems, they may not have enough time to focus on other important issues.

A successful and forward thinking business would require a worker with an analytical mindset to help them make better decisions, and to assist in driving revenue and profits to the company. This is why the majority of companies are earnestly seeking employees with business analyst expertise. 

There are different roles within the company that a Business Analyst can slip into, some of which are: Operations Research Analyst, Financial Analyst, Management Analyst, and Market Research Analyst.

Business Analysts have to use research methodologies to gather information about problems that restrict the company from achieving their targets. Once the issues have been identified, the next step is to communicate the problems with the concerned team and share their insights. 

They would be required to complete a critical analysis of the information gathered so far and arrive at a solution that is confirmed by the available data. By presenting their strategies to the company, they can pave the way for improvements, adjustments, and ensure smooth flow of the business. 

This is also a growing field, with an increase in job vacancies year on year. With new types of industries popping up, we can expect a greater demand for Business Analysts in the near future.

To name a few, the demand for Business Analysts is constantly increasing in business like Information Technology, Finance and Insurance, the Public Sector, the Health Care sector, and within Business Consultancies. 

The U.S Bureau of Labor Statistics have advised that there would be a rapid increase in demand for all Business Analysts roles. Please note that the U.S Bureau of Labor Statistics use ‘Business Analysts’ an umbrella term to refer to other analysts’ roles previously mentioned. 

In particular, the demand for the Technical and Information Security Analysts role will see a 31% increase by 2029. This sudden rise in demand for Business Analyst may be due to the COVID 19 pandemic period. COVID 19 and subsequent lockdowns have had a huge and mostly negative impact on many businesses and industries. Many businesses are struggling to navigate their way in this ‘new normal’ and this may explain why Business Analysts became essential for even small-scale companies. 

While the demand is on the rise, there is a question if there is enough labour force with relevant analytical skills. IBM has advised that people with the relevant skills serving in different roles would have to switch their career to meet the growing annual demand for a Business Analyst role. 

The terms ‘Business Analyst’ and ‘Data Analyst’ are often used interchangeably by many different companies. This can cause a great deal of confusion.

Superficially, the responsibilities and tasks of these roles may look similar, but there are also differences between these two occupations. This article aims to provide a clearer idea about each of these individual roles.

Data Analyst:

What are the duties of a Data Analyst?

Data Analysts predominantly work with data. Data in this instance means rough numeric information, statistics, and facts.

All companies run their businesses based on all available quantitative and qualitative data. If the data is considered ‘rough’ and has not been collated, progression within the business would be difficult as the relevant departments and staff would be unable to understand the information provided.

Therefore, Data Analysts gather and measure the data provided in order to analyze and present said data to the appropriate areas of the business so that an informed decision for the betterment of the company can be made.

In order to become a Data Analyst, a successful candidate must have excellent presentation and communication skills, extensive experience with Microsoft Excel and SQL (Structured Query Language), as well as a background with Python programming language. 

Responsibilities:

• Gathering relevant data needed for a particular project
• Removing or cleaning the unnecessary data
• Measuring the quantitative data
• Identifying patterns in qualitative data
• Analyzing each round of data for tracking trends
• Segregating data into appropriate groups
• Visualize and present it to the stakeholders of the companies and/or relevant departments
• Maintaining entire database
• Troubleshooting the problematic data

Business Analyst:

What are the duties of a Business Analyst?

Business Analysts are generally considered as problem solvers and critical thinkers. Strong analytical skills and interpersonal expertise are essential to effectively perform their role within a business. 

People who are Subject Matter Experts (SMEs) in their fields often can become Business Analysts. A competent Business Analyst will work across different departments in identifying problems and issues to enable companies to progress further by defining the needs and then recommending suitable solutions.

The solutions that are devised are based on the data available. There are different types of Business Analysts such as: Operations Research Analyst, Market Research Analyst, Management Analyst and Financial Analyst. 

Responsibilities:

• Identify the existing problems in companies business and technical sides
• Evaluating the possibilities to bring appropriate solutions
• Researching available data and market trends
• Communicating with different team members and departments to share their insights
• Identifying opportunities to make improvements
• Presenting the findings to the company’s stakeholders
• Introduce strategic operations and recommendations to enhance the efficiency of the company

Conclusion:

Data Analysts and Business Analysts both perform their duties using the data available. 

A Data Analyst works predominantly with raw data in order to present it in a suitable manner and they are considered as responsible for maintaining the entire database. From collecting data to presenting it to the relevant department and/or stakeholders, a Data Analysts’ responsibilities stop there. 

However, a Business Analyst uses the provided data to identify the needs of the business and provide correct solutions based on the analysis.

To be precise, a Business Analyst uses the collated data as means to identify issues and present solutions whereas Data Analysts visualize the data to interpret the business performance. 

We can see from the above points that both Business Analyst and Data Analyst have a lot of differences. Whilst there are differences, both the positions are required in many industries.

Many companies hire Business Analysts as well as Project Managers to help in different aspects of the business. Both the roles share some similarities, so, many Business Analysts choose a Project Manager role as their next step in career. 

There are also certain differences in responsibilities of each role. Ascertaining the differences in each role will help companies to recruit someone with specific skill sets that are suitable for that role. 

It can also help people to identify their area of interests and upgrade their skills to switch roles. Let’s look at the differences in their responsibilities, salary, their demand in the job market, and skills. 

Business Analyst

Business analysts specialize in determining the needs of the business and provide necessary solutions to help companies achieve their target. They look at business and strategy in broader perspective so as to understand the problems, and communicate with cross-functional teams, higher authorities, and stakeholders to arrive at a solution. Some of their responsibilities include:

Identifying problems: They have to identify the needs of the companies and then look at the problems that come along with the needs.

Research business opportunities: They should look for a niche in which their business wants to step into and analyze if their company can perform well in that niche.

Analyzing data: Their recommendations and solutions should be backed up by analyzing the available data.

Implementing solutions: Bring up appropriate solution for the needs and problems, and implement it in a right way.

Salary: On an average the pay is $70,000 per year. 

Growth market: There are over 2.7 million jobs offered so far, and this field is expected to grow by 11% in the near future.

Skills: Communication, interpersonal, forward thinking, and problem-solving skill. 

Project manager

 Project managers specialize in initiating, executing, and completing the project within the provided budget and timeline. They appoint suitable resources, lead the team, and ensure that the project goal aligns with the business goal. 

Determining the needs of the project: They have to identify the material needs, resources, costs, and scope of the project.

 Intermediate between team and management: Have to establish mutual understanding between team members, production team, development team, and upper management.

Organizing the team: They organize resources and materials and motivate them to ensure the smooth flow of the project.

Risk management: Analyze the project for any risks and notify the team and management to take necessary precautionary steps.

Project completion: Ensure that the project is completed before deadline. 

Salary: On an average they earn $77,633 per year.

Growth market: 1.4 million project manager job opportunities given so far. Around 6% increase is expected by 2029.

Skills: Leadership skill, communication skill, interpersonal skill, organizational skill, and negotiating skill.

While there might be some overlapping skills for these roles, it cannot be determined that these roles are similar. They both are different domains because project manager focuses only on the project and the business analyst covers the entire aspect of the business.