Business Analyst Salary – United States

What is the Business Analyst Salary? Anytime you are considering a career it is good to know what the salary expectations that go with it are.

This post is based on what I have seen (not necessarily earned) in the Business Analyst field in terms of salary and usually what goes along with the higher salaries.

Numbers presented in this post are in US dollars along with the assumption that at the high to very high end, the person would be working as a consultant rather than a permanent employee of a company and the company is US based.

The salary range for Business Analysts is large but not vast – you don’t get into the millions doing this. At your lower end, the starting pay can be in the low 30’s per year. In the middle you might expect anywhere from 50-80k. Once you get into the Senior Business Analyst role you might expect anywhere from 80- 130k. At the very high end, you might be able to bring in as much as 140k – 200k but those opportunities are few and far between, usually involve travel, being located in an expensive part of the country and specialized knowledge.

One thing I have to mention is that not all Business Analyst roles are the same and depending on what the Business Analyst is working on / responsible for can have a great impact of their dollar value to a company. At the same time not all Business Analysts are cut out to work in the high dollar roles because of the specialized knowledge and people interaction skills required. Eventually I will put together a questionnaire to enable BA’s to sense what direction they are being called in.

Looking at the numbers above, you may consider that being a Business Analyst is a great opportunity, however if your motivation is making money there are more lucrative careers out there in sales, marketing, investing. Eventually you will hit a plateau with the Business Analyst salary and may even see the salary shrink from time to time as companies merge or outsource opportunities. Most people that have been doing the Business Analyst role for more than 10 years have all reached a point where the salary raises have hit a wall. This means that sometimes the next role for these people can be a bit of a cut from the previous or involve taking time off while waiting for the right role to come along.

Some similar  types of roles that pay more than the Business Analyst salary:

  • Trainer for a specialized training company as long as companies are hiring training companies. When times get hard, training is usually cut back. I have known people to make in excess of 250k in those roles but it does involve travel.
  • Project Manager / Program Manager – I have seen these salaries get into the 200+k bracket
  • Product Manager – These roles offer more growth than the BA which leads to larger salaries.

To get into the higher Business Analyst salary bracket it usually requires:

  • Years of experience. Once you break the 5 years you are well on your way to being a Senior Business Analyst and generally anybody with 10 years is considered senior by default.
  • Specific software application skills. Knowledge of certain SAP software modules or Personnel software such as PeopleSoft goes along way here to raising your value. There are other software packages out there, so the best way to find out what is in demand is to search the job sites. Note that with the larger software packages such as SAP, salary is dependent on specific modules not just knowing any SAP module. Additionally the experience needs to be current to get the best dollar offer.
  • Data warehousing / business intelligence. This area is growing rapidly and Business Analysts with the skills to define data, access (write SQL) and report on it, are in big demand which has raised the salaries accordingly.
  • Specialized knowledge in a business process can take you into higher amounts of money, in some cases in excess of 200k. I have seen from my own experience that specific business knowledge makes you more desirable in the market place. However it boils down to supply and demand combined with a willingness to travel to the location where the demand is. Some samples of in demand business skills – Basel Compliance, Capital Markets (The various desks / trading products), ecommerce. This is only a small sample, the job sites can show you more. The demand can also be very temporary as corporations wish to respond rapidly to business change and then once it is over they have no desire to maintain the relationship with the Business Analyst because of the cost.
  • Specialized Certifications. I am not talking here about a Business Analyst certification but rather certifications that go along with specialized business knowledge. Examples would be a Business Analyst that at some point has held or still holds brokerage certifications. These certifications guarantee the Business Analyst understands the trading floor and states they can talk the same language.
  • Having a MBA helps open doors. It is however not a necessary requirement as companies will value relevant experience over a MBA.

I left Business Analyst certification off of the above list because it has only been around for a few years. This has most value for two types of people in the Business Analyst role. Trainers use it to prove their credentials to train. BA’s with only a limited amount of experience use it to get in the door on their next role as it supposedly states to the employer that they know how to be a Business Analyst.

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