Earning a degree in data analytics will provide you with the data management skills that can lead to many rewarding data and technical careers. With proper education in database analytics and related disciplines, you will be well qualified for many highly paying data technology positions.
IBM Predicts Demand For Data Scientists Will Soar 28% By 2020
Just think you could have the next job or career at an artificial intelligence, FINTECH, blockchain or Cryptocurrency start up! There is nothing more valuable today then a degree in Data or Business Analytics.
- Jobs requiring machine learning skills are paying an average of $114,000. Advertised data scientist jobs pay an average of $105,000 and advertised data engineering jobs pay an average of $117,000.
- 59% of all Data Science and Analytics (DSA) job demand is in Finance and Insurance, Professional Services, and IT.
- Annual demand for the fast-growing new roles of data scientist, data developers, and data engineers will reach nearly 700,000 openings by 2020.
- By 2020, the number of jobs for all US data professionals will increase by 364,000 openings to 2,720,000 according to IBM.
- Data Science and Analytics (DSA) jobs remain open an average of 45 days, five days longer than the market average.
For example, by 2020 the number of Data Science and Analytics job listings is projected to grow by nearly 364,000 listings to approximately 2,720,000 The following summary graphic from the study highlights how in-demand data science and analytics skill sets are today and are projected to be through 2020.
To understand what a potential salary in data analytics could be, this article details the following factors that affect potential salary in this field:
- Whether you earn a bachelor’s or masters in data analytics
- The type of technical career you select
- Years of work experience
With this information, you can have a good idea of the potential salary you may enjoy with a data analytics degree.
Level of Data Analytics Degree
There is a lot of research available suggesting that earning a master’s degree can result in a higher salary over the course of your career than only a bachelor’s degree. Of course, whether this is true or not will depend upon the exact field you work in.
The Bureau of Labor Statistics or BLS states that the median wage in 2013 for all workers with a master’s degree was $68,000, and $56,000 for those who had a bachelor’s degree – a $12,000 difference.
BLS also notes that there is some degree of pay off for earning a master’s degree in STEM professions – science, technology, engineering and mathematics.
For example, BLS data shows that the median salary for statisticians and mathematicians (closely related to data analytics) for people with a bachelor’s degree was $60,000 in 2013. For those with a master’s degree, the median salary was $80,000. This is a $20,000 premium.
In the field of data analytics, the evidence found suggests that earning a master’s degree could be worth it in the long run to earn a higher salary. Payscale.com reports the following median salaries for ‘big data analytics’ positions by degree:
- Bachelor of science: $95,779
- Master of science: $102,254
- Bachelor of arts: $83,597
The wage difference between a BS and MS is approximately $6500 per year, per Payscale.com data. Is this worth the extra time and expense to earn a master’s degree? It will depend upon the cost of the master’s program, whether you have to give up work to go to college, and other factors.
Types of Data Careers
Earning a bachelor’s degree or master’s degree in data analysis or a related field can affect your pay. But so can the exact occupation you choose. BLS and other sources provide information about the type of salary you can expect in a variety of technical positions that are related to a career in data science.
The job of a data analyst involves retrieving and collecting large amounts of company data, organizing it into a usable form and then making conclusions based upon it. All types of industries hire data analysts, from healthcare companies to electronics companies to fast food chains. The insights that data analysts make can be invaluable to companies who need to know more about what their customers and end users want.
See more about How to Score a Career in Big Data
Payscale.com reports that the average salary for a data analyst is $57,200 per year, with a range between $40,000 and $82,000.
Indeed.com reports the the average salary for data analysts is $69,793, with the following salaries reported by these companies:
- Capital One: $89,500
- Microsoft: $89,700
- EmblemHealth: $77,115
- Bank of America: $73,300
- AT&T: $69,000
- Cisco: $65,700
- Google: $75,881
- IBM: $73,053
Data scientists identify business problems and trends through the performance of big data analysis. They interpret results from several sources using many data analysis and statistical techniques, such as data aggregation and data mining.
Salary.com reports that data scientists make a median salary of $123,226, with a range between $92,934 and $151,685.
Many professionals who earn a degree in data analytics or data analysis also end up working as statisticians. Statisticians perform data analysis and apply statistical and mathematical skills to solve problems in healthcare, business, engineering, manufacturing and other fields. Statisticians with a background in data analysis use special statistical software to analyze large amounts of data. They identify critical trends in the data and also conduct tests to determine if the data is valid. Find online Statistics degree programs from accredited schools.
The Bureau of Labor Statistics states that the median wage for statisticians in 2016 was $80,500, with the range between $46,500 for entry level professionals with a bachelor’s, to $130,090 for workers with the most experience and a master’s.
Median salaries for statisticians also varied based upon industry:
- Federal government: $100,700
- Research and development: $87,100
- Insurance carriers: $77,400
- Healthcare and social assistance: $76,000
- Colleges and universities: $71,000
Related technical and data careers with different salaries include:
- Actuary: Analyze the financial costs of uncertainty and risk, using mathematics and statistics to assess the chances of certain events occurring. They help clients and businesses to develop policies that reduce risk. Actuaries have a statistics and data background and often work in the insurance industry: $100,610. Find actuary degree programs online.
- Financial analyst: Provide information and guidance to businesses and individuals who are making investment decisions; they use data analysis to assess performance of stocks, bonds and various other investments: $81,700. Find online financial management degree programs.
- Computer systems analyst: Study the computer systems and procedures in place in a company and offer solutions to help the company to be operated more efficiently: $87,200.
- Survey researcher: Design and conduct surveys and perform data analysis. Surveys are vital to collect important data such as salaries, employment and to get people’s opinions on important subjects: $54,700.
- Economist: Study the distribution and production of goods, resources and services by collecting and analyzing data, studying trends and reviewing economic issues. Often study past trends and use them to make economic forecasts. Data analysis and statistics are critical skillsets for economists: $101,000.
- Budget analyst: Assist public and private organizations to better organize their finances. Also prepare quarterly and annual budget reports and monitor how an institution is spending money: $73,800. Find online accounting degree programs.
Analyst Careers by Job Title
Data Analyst Work Experience
As in most fields, years of experience is a factor in determining one’s salary.
Payscale.com has the following salary breakdown for the role of data scientist according to years of experience:
- An entry level data scientist with fewer than five years of experience can earn an average salary of $89,000. This is based upon 593 salaries reported.
- A data scientist with five to 10 years of work experience can expect a salary of $107,000 based upon 142 reported salaries.
- An experienced data scientist with 10-20 years of experience can expect an average salary of $120,000 per year based upon 66 reported salaries.
- com reported an average national salary for data scientist of $93,729.
For the career of data analyst, Payscale.com reported the following salary information based upon years of experience:
- Entry level data analysts with less than five years of experience earn an average salary of $54,000.
- An experienced data analyst with 5-10 years of experience can expect an average salary of $63,000.
- A highly experience data analyst with 10-20 years of experience can earn an average salary of $64,000. This suggests that salaries for data analysts tend to plateau in year 10 and beyond.
- National average reported by Payscale.com for data analysts is $55,670.
Data Analyst Industry
The industry in which you are employed is the last major factor that will affect your data analysis career. Springboard.com reports the various salaries by industry for data analysts:
- Natural resource mining: $110,000
- Professional and technical services: $91,000
- Finance and insurance: $91,000
- Information: $89,000
- Utilities: $87,000
- Manufacturing: $86,000
- Wholesale: $76,000
- Government: $76,000
- Education: $70,000
- Real Estate: $69,000
- Retail: $64,000
Alternatives to Data Analytics Degrees
Some experts in data analytics and data science offer these thoughts on a data analytics or data science degree:
- Data analytics or science degree may not be necessary: Some experts in the field contend that many of the best data scientists come from fields that are not always associated with data analytics, such as statistics, computer science and machine learning. This is not to negate the value of a data analytics degree; just know that it is possible to work with a good salary in data analytics with a different, related degree.
- Data science deals with several disciplines: A reason that some say that a data analytics degree is not necessarily the only path is because the job of data analytics is a combination of many skillsets. Most data scientists come from the statistics and computer science fields, and the best scientists typically combine both disciplines.
- Think about how much theory you need to learn: Some data experts advise that the best path to a data analytics career is to earn a bachelor’s degree in statistics. They argue that a bachelor’s in statistics is more methodological and a master’s program is highly theoretical. Theory is great, but some say that it is really of most value to professionals who work in research and academia.
The information above illustrates the important factors that can influence your salary in data analytics. Study these various factors carefully and choose your career course wisely, and you could be enjoying a very high salary for years to come.
- 5 Things You Should Know Before Getting a Degree in Data Science. (2015). Retrieved from https://blog.stitchdata.com/5-things-you-should-know-before-getting-a-degree-in-data-science-40cddf44aac3
- What Does a Data Analyst Do? (n.d.). Retrieved from http://www.rasmussen.edu/degrees/technology/blog/what-does-a-data-analyst-do/
- Mathematicians and Statisticians. (2015). Retrieved from https://www.bls.gov/ooh/math/mathematicians-and-statisticians.htm
- Highest Data Analyst Salary. (n.d.). Retrieved from https://www.springboard.com/blog/data-analytics/data-analyst-salary/
- IBM Predicts Demand for Data Scientists. (2017). Retrieved from https://www.forbes.com/sites/louiscolumbus/2017/05/13/ibm-predicts-demand-for-data-scientists-will-soar-28-by-2020/#6639dc007e3b