Data Analyst Salary: What to Expect and How to Maximize Earnings in 2024

Data analysts derive useful insights from data to help companies make better business decisions. These decisions affect sales and marketing, customer experiences, efficiency of internal operations, etc.

In today’s market, analytics can significantly enhance a company’s value. Consequently, there is a high demand for analysts in almost every industry, including business, finance, healthcare, and education. However, the supply of data analysts hasn’t kept up with this demand.

Competition to hire and retain available data analysts has resulted in higher base salaries and other perks. How much could you earn as a data analyst, and what factors would affect these earnings? We’ll be answering these and other questions below.

As data analysts progress in their careers, they often experience steady wage growth. Senior data analysts, for example, earn an average base salary just below $100,000. That’s nearly $20,000 over base salaries for entry-level analytics positions.

Here are the base salaries of a data analyst grouped into 6 seniority categories:

An undergraduate degree in math, statistics, or business is usually a prerequisite for internships and entry-level positions in data analytics. Increasingly, however, advanced degrees, such as a master’s in data analytics, are becoming necessary to climb the career ladder in analytics and earn mid- and senior-level wages.

Based on different sources that aggregate salary data, including Interview Query and Glassdoor, the average base pay for data analysts in the US is approximately $83,000. This doesn’t include bonuses, commissions, profit shares, and other additional earnings that push the average total compensation to somewhere between $99,000 and $108,000.

Note that these averages don’t represent the actual earnings of every data analyst. An entry-level analyst’s annual salary may be closer to $50,000, while senior analysts and those in managerial roles may earn well over $250,000.

However, seniority is just one of several factors affecting your pay, which is why some entry-level analysts’ total compensation is over $100,000.

What you earn as a data analyst is determined by many factors. Some of these factors will be within your control, but others won’t. A few key factors are explained below.

Experience

Experienced analysts are typically more knowledgeable than their colleagues newer to the field. They can extract useful insights faster and help guide less experienced data professionals. Their expertise enables companies to meet their analytics goals faster.

Experienced analysts are also more likely to have the skills to take on additional responsibilities, such as leading teams, representing the company externally, and participating in company-wide decision-making.

Industry

Although there is a high demand for analysts, this need isn’t consistent in every industry. The business case for analytics is also greater in others, and companies don’t mind paying more to compete. For example, according to Glassdoor, the base pay for data analysts in the legal industry starts at $56,000, while in aerospace and defense, it starts at $79,000.

Location

Analysts in certain locations command higher salaries than those in others. Varying costs of living contribute to this, but companies may also have higher expenses for employees living in certain places due to:

• Differences in labor laws
• Taxes
• Social Security contributions
• Medical insurance
• Data security, etc.

You can check out a comparison of entry-level data analyst salaries by city and other factors on Interview Query.

Seniority

A data analyst who takes a managerial role will almost certainly earn more than analysts at the same company with the same level of experience. As a manager, the analyst will have additional responsibilities and will be making decisions with wider-reaching effects.

Although experience and seniority often go hand-in-hand, not all analysts have the skills or desire to become managers. Check out on Interview Query how the average salary for analysts changes with seniority.

Company

Some companies offer significantly higher pay and better perks to their analysts. For example, the median pay for a data analyst at Meta is $136,000, while at Amazon, it’s $125,000. Differences in salary may be due to individual company policies, the particular responsibilities of analysts in the companies, and other factors.

Data analysts have lower starting salaries on average compared to other data professionals, including data scientists, data engineers, business analysts, and machine learning engineers.

More experienced analysts can command higher base salaries than growth marketing analysts, business analysts, and product analysts. However, when comparing total compensation, data analysts still rank lower than other data professionals on average.

You can check out a more detailed comparison of salaries for data professionals on Interview Query.

Regardless of industry averages, you can play a big part in determining what you’ll earn as a data analyst. Whether you’re already working or about to interview for a data analyst position, there are several ways to increase your earning potential in this field.

Upskill

Some analytics skills are in higher demand and attract higher pay, even for entry-level analysts. This is why some industries and companies pay their analysts significantly more. Acquiring in-demand skills such as machine learning can improve your earning potential.

Management training and similar courses can also give you the skills to take on greater responsibilities within your company and earn more.

Negotiate Your Salary

Not negotiating for a higher salary often means leaving money on the table. This is a common mistake employees make. Do as much research as possible to determine how much other analysts with similar responsibilities are paid within and outside your company.

You should also try to determine how much value you bring to the table and use this information to negotiate a higher salary. Check out how much other data analysts in different companies earn on Interview Query’s salaries page.

Change Companies

One of the main benefits of changing jobs is that it’s almost guaranteed to come with a salary increase. Statistics suggest that switching jobs results in an average 14.7% salary increase. According to some experts, you should change jobs at least once every three years.

You can visit Interview Query’s job board to see which companies are currently hiring data analysts.

Change Industries

As stated earlier, data analysts’ work is valued more in specific industries. If you believe you’ve hit the ceiling of what an analyst with your level of experience can make within your industry, looking elsewhere may be a good idea. Take note that some sectors may prefer data analysts with subject-matter expertise.

Showcase Your Value

If you’re already employed as a data analyst, earning more without a promotion is possible. The trick is to showcase your value to the company. To do this, you’ll need to:

• Know your strengths and how they set you apart from colleagues
• Keep track of and highlight achievements that have added value to your employer
• Demonstrate how you can further the successes of the company
• Be confident when it’s time to negotiate your salary

Data analytics has become essential to many businesses’ survival, leading to a rise in demand for data analysts. Now, companies are willing to pay more than ever to recruit and retain them. The salary of individual analysts is determined by many factors, including years of experience and industry, but you can also actively take steps to increase your earning potential.

Interview Query can help you boost your prospective earnings as a data analyst. We provide access to resources to help you prep for your next interview, including practice questions, mock interviews, and company interview guides. We can also connect you to coaches who can offer expert advice to help you ace that interview and negotiate the right perks.

There has never been a more rewarding time to be a data analyst, and we hope to see you earn what you’re worth!