At companies of all sizes and industries, one little word holds extraordinary power. That word is data. Data has long been the backbone of organizational problem-solving and decision-making.
Throughout the 21st century, new technology has equipped more companies than ever to collect and store large amounts of data. These companies need skilled data analysts to ensure the utility of that data, interpret it, and communicate what it means. So it’s no wonder that data analysts are in high demand and paid competitively.
Professionals pursuing careers as data analysts can expect to encounter a wide range of salaries. As of December 2022, Glassdoor presents the possible range for annual total pay (salary plus bonuses, commissions, and profit sharing) starting at $47,000 for an entry-level data analyst and reaching as high as $596,000 for a vice president of data.
Average salaries vary slightly from one source to another:
Glassdoor reports an average data analyst’s base salary of $67,185.
Salary.com offers a similar estimate of $66,363 for the job title business data analyst I.
The Occupational Outlook Handbook, published by the U.S. Bureau of Labor Statistics, estimates $100,910 as the median pay for data scientists.
When looking at these averages, it’s important to understand that each source has its own methodology for collecting data, as well as its own set of definitions for job titles. For example, Glassdoor relies on self-reported data from its users, while the Occupational Outlook Handbook uses a combination of methods, including surveys and administrative records.
As with most careers, data analysts tend to earn more money as they gain more experience. With greater experience, data analysts can gain management responsibilities or become senior leaders at the executive levels of their organizations. High-ranking data analysts are responsible for critical decisions, so successful ones are able to command high salaries.
Note that job titles and levels of experience aren’t standardized across all companies. For example, startups might move someone “up through the ranks” more quickly than a large, established company. Quirks like these account for differences among the data.
These averages are provided by Glassdoor.com:
Meanwhile, here’s how the average salary for the job title “Data Analyst” changes based on years of experience:
As these averages show, data analysts can expect to see their salary increase over time, but those who don’t climb the career ladder will see lower gains than those who do.
Location is another important factor for determining salaries. Companies headquartered in major U.S. cities such as New York, San Francisco, and Seattle can generally afford to pay greater salaries. At the same time, residents of these cities also face a higher cost of living. Whether the higher wages offset the cost of living depends on economic factors like inflation, along with individual lifestyle, including whether one buys or rents a home, has children, or is willing to make a long commute.
Since 2020, remote work has become much more common among “knowledge worker” jobs that had traditionally taken place in an office. Some companies adjust pay based on a worker’s location, while others only consider factors such as experience and performance. Norms and expectations around location-based salary adjustment will likely continue to develop as the economy adjusts to the new realities of remote work.
With that in mind, here are the average salaries for a data analyst in some of the largest U.S. cities, according to Zippia:
Data analysts at any career stage can increase their earning potential in a variety of ways. They might consider developing their skills through online courses and certifications, including the Data Science Professional Certificates offered by legacy tech giants like IBM and Microsoft.
People already in data science roles can demonstrate their value to their employers by identifying and taking the initiative toward solving organizational challenges, as well as seeking to expand their management skills and responsibilities.
For landing a job and earning the best salary, job seekers can trust the expertise and support of Advantis Global. We work with companies ranging from Fortune 50 enterprises to rising start-ups to place full-time and contract talent in exciting roles. Our recruiters can help you land your dream job, from the application to interviewing and negotiating. Apply for a job or submit your resume to get started!