What Does a Data Analyst Do?

The global data analytics market(opens new window) is projected to grow from $30 billion in 2022 to $393 billion in 2032. This rapid growth will likely lead to increased demand for Data Analysts.

Several factors have contributed to the popularity of data analytics. Notably, the widespread adoption of smartphones and other technology has led to an exponential increase in the amount of data produced daily(opens new window). Many companies have recognized that they can use this information to make informed decisions and improve their performance.

Data Analysts play a central role in helping businesses leverage the power of data. They often earn six-figure salaries and can work remotely or in the office. However, there are several factors to consider before you decide to pursue this career. Below, we'll break down typical Data Analyst responsibilities, skills, salary, and more.

Data analysis uses statistical methods, computational algorithms, and other tools to explore and interpret data. Organizations use data analysis to answer questions and gain insights.

The process involves these basic steps:

A Data Analyst uses statistics and software to interpret data and uncover underlying patterns. These findings help organizations make strategic decisions and identify opportunities for improvement.

Common responsibilities for Data Analysts include:

Both Data Analysts and Data Scientists gather and interpret data. But they have distinct roles and responsibilities.

Data Analysts specialize in processing and interpreting structured data. They typically use data to answer specific questions and inform decision-makers. Say a hospital wants to determine why medication errors have increased. A Data Analyst could examine electronic health records and incident reports to pinpoint potential causes.

Data Scientists use advanced statistical methods to analyze structured and unstructured datasets. They may also build machine learning algorithms to collect and interpret information. These professionals often use predictive models to forecast the future. For instance, a Data Scientist could project future medication errors and suggest proactive solutions to avoid them.

You can land a job as a Data Analyst or Data Scientist without a college degree. But Data Scientists typically require more advanced knowledge and skills, including:

Both roles have positive job outlooks, though Data Scientists will experience slightly higher demand. According to the Bureau of Labor Statistics (BLS), the number of jobs for Operations Research Analysts(opens new window) (also known as Data Analysts) will increase by 23% between 2022 and 2032. On the other hand, the BLS projects that job openings for Data Scientists(opens new window) will grow by 35%

These careers also have different salary expectations. Based on thousands of job postings, ZipRecruiter reports that the average salary for Data Analysts(opens new window) in the United States is $83,000. By contrast, the average Data Scientist salary is $123,000.

Businesses in every industry use data analytics to gain meaningful insights and improve performance. Analysts leverage information from numerous sources, from customer surveys to machine sensors. This data allows companies to deepen their understanding of their clients, workflows, and overall performance.

Organizations use these insights to make data-driven decisions and accomplish their goals. They also study customer behavior to offer personalized marketing and services.

Data analytics has already revolutionized business operations in many industries. For example, the equipment manufacturer John Deere(opens new window) installed cameras and sensors on tractors to collect environmental data. This information helps farmers understand soil conditions and distinguish between crops and weeds while spraying pesticides. Additionally, John Deere uses the data to help farmers remotely troubleshoot malfunctioning machinery.

You don’t need a college degree to pursue a career in data analytics. But employers will expect you to have the necessary soft and technical skills.

Data Analysts use statistics and math to interpret data and create predictive models. You should understand mathematical concepts, including calculus, linear algebra, and probability theory.

Additionally, you should master statistical techniques like regression analysis and hypothesis testing. You’ll use these methods to analyze data and understand the significance of your results.

Data Analysts need to know various programming languages, such as:

Data visualization allows you to represent information in a graphic format. For instance, you can use a bar graph to compare sales revenue by month or a line graph to visualize trends in customer engagement. These graphics allow you to spot new trends and communicate your findings to stakeholders.

Microsoft BI and Tableau are two of the most popular data visualization platforms. These tools enable users to create interactive dashboards and accessible graphics.

Strong communication skills enable Data Analysts to share insights with clients, colleagues, and other stakeholders. You’ll need to know how to communicate complex technical ideas in an accessible manner. It’s also essential to have strong presentation skills to tell compelling stories about data.

People often picture Data Analysts as solitary number crunchers. While this can be an excellent career for introverts, these professionals frequently work in cross-functional teams to complete complex data projects. For example, you might collaborate with Product Managers to interpret user behavior and improve product features. Active listening and empathy can help you excel in team settings.

According to ZipRecruiter, Data Analysts earn between $34,000 and $136,000 annually. Most salaries range from $62,500 to $97,000.

Many factors influence salary, including:

You may also increase your earning potential by using your data analytics skills to pursue roles with similar responsibilities and skill requirements. For instance, ZipRecruiter reports that the average Business Analyst salary is $99,000.

In addition, you could qualify for more specialized — and often lucrative — roles as you gain experience and expand your skills. Some Data Analysts develop advanced knowledge of database management systems and become Data Engineers. ZipRecruiter reports that these professionals earn an average salary of $130,000. You could also transition into a role as a Business Intelligence Developer, which pays $112,000 on average.

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