Last Updated: June 16th, 2022 by
Making decisions as a business leader can be quite challenging without having the correct information. As a data analyst, that’s where you come in. Your job in this role is to collect and analyze data to produce valuable information for decision-making.
You’ll rely on statistical analysis and a wide range of information technology solutions to help you perform your responsibilities.
In this career guide, you’ll discover everything you need to know about how to become a data analyst, including salary information.
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Job Description
The first step to learning how to become a data analyst is to know what the job entails. In this role, your first responsibility is to collect data on your company’s operations and organize them into databases for easy access.
Then, you’ll examine that data and analyze it for patterns. The patterns you look for show problems or opportunities that the company’s decision-makers should be aware of.
Next, you’ll have to communicate your findings to the decision-makers who need them. You’ll do so by producing reports and making presentations explaining your findings and why they matter.
Lastly, you’ll advise the company’s leaders in making decisions based on your understanding of the relevant data.
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What Does an Average Day for a Data Analyst Look Like?
One of the most important things when learning how to become a data analyst is understanding what they do on a day-to-day basis.
Here’s what an average day will look like for you in this role:
Collect Data
Before performing any analysis, you must first collect the necessary data to do your job. The data will be uniquely related to your company’s operations.
For example, it could be data about the sales of a particular product that your company makes.
You can collect everything you need from your company’s databases and enterprise resource planning (ERP) software.
Look for Patterns
Once you have the data you need, you’ll then perform different types of analysis on it to look for useful patterns. Of course, the patterns you’re looking for are the ones that can affect the company’s decision-making.
For example, you might perform a statistical analysis of the company’s data to determine which products sell and which ones don’t. But, more importantly, you’ll also dive deeper to find hidden patterns, like discovering which products sell at specific times of the year.
Produce Reports
At this point, you’re the only one who understands the patterns that you’ve found from the data you’ve analyzed. So the next step is to produce reports to help decision-makers understand why your findings are significant.
The reports that you produce are crucial to the business’s overall success. That’s because your employers will make critical decisions based on the information that you provide them through your reports.
Prepare and Deliver Presentations
Besides producing reports, you’ll also prepare and deliver presentations for the company’s decision-makers. These presentations allow you to explain the patterns you’ve found and how they affect its operations.
In doing so, the company’s leaders can also pose questions to understand your findings and make better-informed business decisions.
Collaborate With Other Teams
Data analysts don’t work alone. Instead, you’ll work closely with team members from other departments in the same company.
Your collaboration with them is essential to understand what information is crucial to their decision-making. Once you know their priorities, you’ll better understand what data you need to collect and what patterns you need to look for.
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Process for Becoming a Data Analyst
The process for becoming a data analyst isn’t standardized. That means your journey will likely be different from that of other data analysts you work with.
Still, here are the general stages that you’ll go through as you learn how to become a data analyst:
1. Get a Bachelor’s Degree
Most, if not all, employers will require a bachelor’s degree to work as a data analyst in their organization.
However, there isn’t just one type of degree that’ll help you become a data analyst. Instead, you can choose to approach data analysis through several different academic pathways.
Firstly, you could pursue a degree relevant to a particular industry you’d like to work in. For example, a degree in manufacturing would be helpful if you’re interested in being a data analyst for a manufacturing company.
Besides that, you can also pursue a degree in mathematics, statistics, or data science. These degrees are helpful because data analysis involves a lot of quantitative analysis (i.e., crunching numbers).
Lastly, you also have the option of pursuing a degree in computer science. Data analysts rely heavily on information technology and various software to perform work tasks. A computer science degree is valuable in helping you leverage these technologies.
2. Pursue Postgraduate Studies
You can also pursue postgraduate degrees like a master’s or Ph.D. to become a data analyst.
A postgraduate degree can help you in two ways:
- The pursuit of a postgraduate degree trains your research skills which are transferable to your work as a data analyst.
- Having a master’s or Ph.D. will help you stand out from your peers. That will increase your chances of finding a job and increase your earning potential.
The timing of your postgraduate studies is also flexible. For example, some people choose to do it as soon as they graduate with their bachelor’s degree. Others prefer gaining a few years of industry experience before doing so.
3. Gain Hands-On Experience
Formal education plays a significant role in preparing you to perform data analysis. However, nothing will show you how to become a data analyst better than hands-on experience.
Typically, you can gain that experience through an internship during or after your bachelor’s degree program. Most universities provide placement support to help you secure an internship with a company’s data analytics department or team.
4. Pursue Useful Skills Training
There are many different academic pathways that you can follow to become a data analyst. Because of that, you’ll likely have some skill gaps regardless of your graduate degree.
Thankfully, you can fill those skill gaps by pursuing further training. According to Northeastern University, there are 7 essential skills for data analysts, which are:
- Structured Query Language (SQL)
- Microsoft Excel
- Critical Thinking
- R or Python-Statistical Programming
- Data Visualization
- Presentation Skills
- Machine Learning
You might pick up some of those skills during your college years. However, you can equip yourself with the rest through additional training.
5. Get Data Analytics Certifications
There are two things you must understand about data analytics certifications. Firstly, you don’t necessarily need to be certified to land your first job.
Secondly, there’s no one-size-fits-all certification for data analysts. That’s because corporations use different information technologies for their data analytics needs.
So, different technology providers will have unique certifications that you can pursue.
Some top examples include:
- Microsoft (e.g., Microsoft Certified Data Analyst Associate)
- SAS (e.g., SAS Certified Advanced Analytics Professional Using SAS 9)
- IBM (e.g., IBM Data Science Professional Certificate)
You can choose to pursue one certification first. Once you’ve landed your first job as a data analyst, you can then decide how you’ll expand your skills and certifications.
Some data analysts specialize in software from just one technology provider. Others choose to pursue a wide range of different certifications.
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Are You Suited for a Data Analyst Career? Skills, Credentials, Tools and Technology
Learning how to become a data analyst involves much more than what you’ll learn during your college years. However, here are some of the skills and proficiencies you must learn to be successful in this line of work.
Personality and Skills
The US Bureau of Labor Statistics (BLS) lists analytical skills, math skills, and critical thinking skills as being essential for this role.
As a data analyst, you’ll leverage your analytical skills to make sense of data and communicate them to decision-makers in the company.
Those skills work hand-in-hand with critical thinking skills that allow you to evaluate and synthesize the information you find from the data you work with.
Lastly, your math skills will help you identify statistical trends that show whether or not your organization is making the correct long-term decisions.
Credentials and Proficiencies
The Occupational Information Network (O*Net) highlights the need for proficiency in using analytical software (e.g., IBM SPSS Statistics), enterprise resource planning software (e.g., Oracle), and database software (e.g., Microsoft SQL).
Data analysts rely heavily on information technology and various software to do their work. The first kind that you must be proficient in using analytical software to identify statistical trends.
To better understand trends related to the business’ operations, you must also know how to leverage enterprise resource planning software. This type of software gives you a big-picture view of the business that helps make sense of the data you work with.
Lastly, database software collects all of the raw data you’ll be analyzing. So, understanding how to use this type of software is also essential for your role.
How Does a Data Analyst Find Work?
After you learn how to become a data analyst, you’ll also want to know how to land your first job in that role.
Thankfully, many corporations understand the value of data analytics and hire people with those skills and knowledge. You can increase your chances of finding work by targeting the industries that hire data analysts the most.
The US Bureau of Labor Statistics finds that the industries that hire data analysts the most are:
- Company and Enterprise Management
- Computer Systems Design
- Management, Scientific, and Technical Consulting Services
- Insurance Carriers
- Credit Intermediation
You can start your job search by identifying local companies in the industries listed above. Then, you can check their websites for job openings. Besides that, you can also contact them directly to ask about current and future job openings.
What’s the Average Salary of a Data Analyst?
A fair question to ask is whether or not learning how to become a data analyst is worth your investment of time and effort.
According to the US Bureau of Labor Statistics (BLS), people in this role earn an average of $92,280. Those in the top 90th percentile earn $144,330, while those in the bottom 10th percentile earn $48,050.
The BLS also finds that the top 5 highest-paying states for this role are:
- District of Columbia ($116,700 a year)
- New Jersey ($114,410 a year)
- California ($108,350 a year)
- Virginia ($108,090 a year)
- New York($107,620 a year)
There are several ways you can increase your earning potential in this role, including:
- Expand your training and experience in more types of databases (e.g., SQL, Oracle, etc.)
- Pursue further education, like a master’s degree or Ph.D.
- Focus on developing soft skills beyond data analytics, like negotiation and leadership
Data Analyst Job Growth
The US Bureau of Labor Statistics (BLS) estimates that this role will grow by 25% between 2020 and 2030. They consider that growth rate to be ‘much faster than average’, which is excellent news if you’re interested in learning how to become a data analyst.
Top 5 Jobs by Growth Within Data Analytics for 2022
The data analyst role is one among many in data analytics. So, you’ll likely work on a team consisting of several data professionals, each with different responsibilities and skills.
Aside from the role of Data Analyst, here are 5 other fast-growing jobs in the field of data analytics that you can also consider for your future career.
Data Scientist
There are many similarities between the responsibilities of data scientists and data analysts. However, in this role, you’ll focus on developing new ways to capture data and improving analysis methods for use by analysts.
Data Engineer
Your focus is more on the data pipelines than the analysis side of things in this role. In other words, your job is to ensure that data analysts and scientists have a steady supply of data to work with.
Data Architect
Architects focus on building and maintaining databases according to the business’ needs. You’ll keep track of the data and control who can see or change the data that’s being collected.
Data Storyteller
This role puts you between the raw data and the people who need to understand it. Here, you’ll simplify data and turn insights into clear stories so other people in the business can understand it.
Business Intelligence Developer
This role puts you more on the business side of the organization. In this position, you’ll build strategies so that business decision-makers can find the information they need right at their fingertips.
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Professional Associations
American Statistical Association
International Institute of Business Analysis