This is a common question that many aspiring business analysts have. The role of a business analyst is complex and versatile, but one thing is clear – there is strong earning potential in this career path. In this article, we’ll explore the typical business analyst salary range, factors that impact earnings, and how to position yourself to reach that coveted 6-figure income.
What is the average business analyst salary?
According to the U.S. Bureau of Labor Statistics (BLS), the median pay for business analysts in 2020 was $88,740 per year. The top 10% of business analysts earned more than $151,930. As you can see, it is definitely possible for experienced business analysts to earn over $100,000, especially in high cost-of-living areas.
According to PayScale, the average base salary for a business analyst is $68,000 per year. With bonuses and profit sharing, total compensation can reach over $80,000 on average. Here is a detailed breakdown of typical business analyst salaries by experience level:
Experience Level | Average Base Salary |
---|---|
Entry Level (0-2 years) | $62,000 |
Mid-Career (3-9 years) | $72,000 |
Experienced (10-20 years) | $85,000 |
Late Career (20+ years) | $95,000 |
As you can see, business analysts in the later stages of their careers have strong potential to earn 6 figures and beyond. The average base salary exceeds $85,000 after about 10 years of experience.
What factors impact business analyst salaries?
There are several key factors that influence how much a business analyst can earn. Some of the top factors include:
- Years of experience
- Industry
- Certifications
- Location
- Company size
The more years of experience you have as a business analyst, the higher your earning potential. You gain specialized knowledge and connections over time that make you more valuable. Industry also plays a major role – business analysts in high-paying fields like finance and technology tend to earn above-average salaries.
Certain certifications like the CBAP (Certified Business Analysis Professional) can boost credibility and salary potential. Location matters too, as you’ll earn more working in major metro areas with a higher cost of living. And finally, large multinational companies tend to pay business analysts higher salaries than small or midsize businesses.
Most lucrative industries for business analysts
If your primary goal is to maximize your earnings as a business analyst, target roles in these high-paying industries:
- Investment banking – $98,000 average
- Energy/utilities – $94,000 average
- Aerospace – $92,000 average
- Pharmaceutical – $91,000 average
- Software development – $90,000 average
Business analysts in these sectors frequently earn 6 figure salaries, especially once they have over 10 years of professional experience. The domain expertise required in fields like healthcare, engineering and finance makes experienced business analysts extremely valuable.
How much do business analyst certifications increase pay?
Here are some of the top certifications for business analysts and the typical salary boost they provide:
Certification | Average Salary Increase |
---|---|
CBAP – Certified Business Analysis Professional | +12% |
CCBA – Certification of Competency in Business Analysis | +10% |
PMI-PBA – PMI Professional in Business Analysis | +8% |
IIBA-AAC – IIBA Agile Analysis Certification | +5% |
As you can see, the top-level CBAP certification provides the biggest boost to salaries. The CCBA and PMI-PBA designations also significantly increase earning potential. Even just having one of these certifications can help propel your salary into the low 6-figures.
What soft skills help business analysts earn more?
Beyond technical expertise, certain soft skills and attributes allow business analysts to command higher salaries. Some of the top high-earning soft skills include:
- Leadership – Ability to guide and influence others.
- Communication – Clear verbal and written communication.
- Problem-solving – Logical analytical thinking and solution design.
- Creativity – Innovative thinking and ability to see issues in new ways.
- Initiative – Proactive self-starter who identifies opportunities.
Business analysts who demonstrate strong leadership, communication, creative problem-solving and business initiative tend to be well-rewarded. These soft skills make you more than just a technical expert – they enable you to drive real business impact.
How can you reach a 6-figure salary as a business analyst?
Here are some proven strategies to boost your earnings potential as a business analyst to that coveted 6-figure range:
- Get certified – Earn credentials like the CBAP to increase credibility.
- Choose a high-paying industry – Target finance, tech, healthcare roles.
- Work in a major metro area – Look for jobs in NYC, San Francisco, Chicago etc.
- Focus on high-value skills – Analytics, process improvement, stakeholder engagement.
- Develop leadership abilities – Guide projects, manage teams, influence stakeholders.
- Obtain advanced education – An MBA or master’s degree can boost salary potential.
- Change jobs strategically – Switch companies every 3-5 years to maximize salary growth.
The most successful high-earning business analysts focus on developing specialized, in-demand skills. They work in lucrative industries in top markets and demonstrate strong leadership and communication abilities. With the right strategy, a determined business analyst can absolutely reach a compensation package of $100,000 or beyond.
Conclusion
While the median business analyst salary hovers around $85,000, experienced analysts in the right industries and markets can certainly earn 6 figures and up. Maximizing your compensation requires strategic career planning and positioning yourself as a high-value expert with leadership capabilities. With a proven salary growth strategy, motivated business analysts can achieve an income of over $100,000.