How Much Do Data Analysts Earn in 2021?

How Much Do Data Analysts Earn in 2021?

How much does a data analyst earn? We did some data analysis ourselves. Nothing fancy, but it will give you some extra motivation for learning SQL for your data analyst gig.

Data, data everywhere! We live in the world of (big) data. Having data is just the first step. Knowing what to do with it, how to interpret it, and what insights it holds, is true greatness. The ability to read and use data effectively is key for organizations to adapt and react to market trends.

This is why managing data is a sought-after skill. Data analysts are in demand and can command sweet salaries. Isn't that what we work for? Yes, we might say that we follow our passion or want to make an impact. But at the end of the day, it is hard money that motivates us to do well.

Keep reading to find out how much data analysts earn!

What Does a Data Analyst Do?

If you are at the beginning of your career, you may not know what exactly a data analyst does. What are the responsibilities and the skills needed? How does a data analyst improve business in general?

Different organizations need different things, and each organization needs a specific set of responsibilities for its data analysts. That said, there are common things a data analyst might do.

Source: Giphy.com

Customer Insights

A company could become an overnight success or suddenly go under. The technologies that surround us and the customer insights they provide play a big part. They provide critical opportunities for business development and for fulfilling customer needs.

How do you get the upper hand in business? Well, by data analysis, of course! If a business understands its customers, it has a better chance of winning in the market.

Marketing Activities

Organizations invest a lot of resources into their marketing efforts. Brands work to evoke emotions and trigger customer behavior. And the name of the game is conversion. Or sales, if you prefer ;-)

Getting it done requires choosing the right tools for the task. And by that, I mean the right marketing channels. This is where the magic happens. Data analysts can help get the ROI (return on investment) by identifying the marketing-decision sweet spots. Social media channels offer a tremendous amount of data.

But it takes the right person to determine the best channels and targeting. Imagine investing $100 and getting a return of $500. You can achieve that with data analysis!

Increasing Sales

Which customers are more valuable for your business? New or recurring? Analyzing data can provide insights for increasing sales. Data analysis can lead to good decisions.

Good decisions increase sales and drive the success of an organization. And good decisions are often based on good business reports, which are prepared with SQL.

Market Trends

As they say, change is the only constant in life. This is very true in most markets if not all. If you pick up on these changes and react accordingly, it helps your organization succeed. Analyzing sales data of a product (or an industry) helps anticipate a plateau or a decline.

Support Business Decision Making

Whenever there is a need to make a business decision, be it strategic or tactical, a data analyst can help.

As you have seen above, different data insights add up to keep a business running. Whether it is about customers, products, marketing, or sales, the impact from data analysis adds up to support a thriving, stable organization. Everything needs a solid understanding of data. We explore these tasks more in another article here.

Now, let's take a look at the skills that influence the salary of a data analyst.

Skills of a Data Analyst

Source: Giphy.com

The list of day-to-day responsibilities for a data analyst is a long one. Some might say it’s also a demanding one. That said, with the right skill set, it is a pleasant one.

To become a full-fledged data analyst, you should be comfortable with:

• Problem-solving and critical thinking
• SQL
• Statistics
• Data visualization
• Presentation skills

You can develop most of these skills through experience. But at the core of these skills is SQL. Check out this graph below:

Source: Towardsdatascience.com

When you have a solid foundation in SQL, you can get a job and pick up new skills along the way. We can help you with SQL, so you can focus on the rest. Click here to make the first step!

Data analysis is an interdisciplinary job. If you want a deeper dive into the skills needed, you can read all about it here.

How Much Do Data Analysts Make?

Source: Giphy.com

OK, so you got some SQL skills, but you’ve hit a roadblock. You’re burned out. You question if the grind is worth it. Well, my friends, it’s time to let the money talk.

Let’s find out how much data analysts are making in 2021!

Some time ago, I did a piece on the salary of the data engineer. I’m going to take the same approach in gathering information about the earnings of the data analyst, focusing on the U.S. market. I looked at different websites. Without further ado, let’s get into it!

First, Glassdoor.com. Here, we see an average salary of $68,491 per year for data analysts.

This average is based on data from 21,510 anonymous submissions to Glassdoor by employees who are data analysts. It’s safe to say it’s a pretty good indicator.

Source: Glassdoor.com

The second source, Dice. Here, we can see that the average salary is $78,676.

We can learn a bit more. As with most jobs, salaries differ by education and experience in SQL jobs.

Source: Insights.dice.com

We see something interesting. Data analysts with bachelor’s degrees earn a similar salary as their peers with a master’s degree. So, the good news is you can hit sweet pay faster than you think.

How about by experience?

Source: Insights.dice.com

As with many tech jobs, a greater level of experience is linked to higher salaries in SQL jobs. So, good things come to those who analyze!

The third source, Indeed. The salary shown is in line with the first two sources. This one also shows the typical benefits that come with the role.

Source: Indeed.com

Source: Indeed.com

This is all good to know and can come in handy when you negotiate. Ask if some of these are included and use them as leverage for sweeter pay!

Moving on to the fourth source. Salary.com shows the average salary of data analysts in the United States at $78,068. The range is between $68K to $87K. Again, experience, education, certifications, and other skills impact the amount.

Source: Salary.com

Finally, PayScale.com. It shows an average salary of $61,710. If you want to get more precise, you can take a short survey. Choose the country, location, years in the industry, and some other factors, and it will tell you what you can expect now or in the future. It’s good to have your eyes on the prize!

Source: PayScale.com

Get Paid as a Data Analyst!

With your motivation back in place and your eyes on the prize, what can you do to move forward? I recommend taking our SQL from A to Z track – if you haven’t already.

In this track, you'll find 7 interactive SQL courses to make you an SQL expert even if you have never written a line of SQL.

You will get a personal certificate you can add to your profile on LinkedIn or publish it on social media. You can improve your chances of getting the job you want. Many recruiters look at certifications for proof of knowledge and skills. You want them on your resume.

You now understand the responsibilities and skills of a full-fledged data analyst. You also know how much you would earn as a data analyst. If you are starting or are already on your path to becoming a data analyst, get some practice to boost your SQL skills and shine in your next job interview. The data doesn’t lie. Learning SQL pays!

Learn SQL and be awesome!