Are you wondering if your business analysis career goals make sense financially? Considering switching careers and wondering if you’ll take a short-term salary hit? Simply looking to find out what salary a business analyst makes?
The most recent salary survey of practicing business analysts was conducted by the International Institute of Business Analysis (IIBA) in 2017. Summary details are available here.
Finding #1: The Business Analyst Salary Continues to Grow, Certification Helps
In the United States, the average business analyst salary is $94,881. This is up from $91,512 in 2013 and $82,493 in 2010.
Of course, salary averages vary widely between countries and based on dollar values and purchasing powers. Worldwide, the average salary for women is $78,980 and men is $75,410.
In comparison, the average salary of top 5 certification holders came in at $85,804, or an 11% increase in earnings, showing a significant advantage to pursuing a certification such as the CBAP.
Finding #2: More BA Experience = Higher Salary
Across the board, the average business analyst salary increased with years of professional experience. Respondents expect an average salary increase of $2,078 / year and individuals entering the BA field expect the largest salary increases.
Unlike previous reports, where education did not have a significant impact on salary, the 2017 report indicated that 79% of respondents hold either a bachelor’s or a master’s degree and that a master’s degree plus experience resulted in $2,566 more in earnings.
What’s more, the average anticipated salary bump in the first 2 years of BA tenure was 37%, meaning that those entering the profession anticipate significant increases over their previous roles.
The good news for you is that even if you’ve never held a titled business analyst job, you may have qualifying business analysis experience. While it’s not a direct output of the report, investing the time in discovering your transferable skills and experiences could make a significant difference in your starting salary in your first or next formal business analyst position.
What’s more, the average tenure of respondents in 2017 was 10 years, the average age is 39 years, and the average age with less than 2 years of tenure is 35.6 years. This data shows that despite new programs for entry-level college graduates, the business analysis profession is largely made up of professionals with deep work experience and professional maturity, and this is consistent with our own experience at Bridging the Gap.
Finding #3: Business Analyst Salaries Diverged Significantly by Industry
In all countries, salaries diverged across industry. For example, in the 2013 report, in the United States, the lowest paying industry averaged salaries at $81,741 and the highest paying industry averaged salaries at $109,288.
The 2017 report indicated that respondents working in the top 5 industries earn 11-27% more than peers working in other industries.
If you are considering focusing on a specific industry in your business analysis career, the report can help you make a wise financial decision. While exceptions always exist to every average, your choice of industry could have a significant impact on your long-term salary potential as a business analyst.
>>Learn How to Get Started as a Business Analyst
In How to Start a Business Analyst Career, we discuss all types of business analyst job roles in greater depth and you’ll learn how to assess and expand your business analysis skills and experience.
This book will help you find your best path forward into a business analyst career. More than that, you will know exactly what to do next to expand your business analysis opportunities.