With the rise of big data, data analytics has become one of the hottest and most in-demand fields. Jobs in data analytics pay well and are predicted to grow rapidly over the next decade. But is pursuing a career in data analytics really worth it? Let’s take a deep dive into the pros and cons.
The Growing Demand for Data Analytics
Data analytics refers to the science of analyzing raw data to draw conclusions and drive business decisions. As data collection and storage has massively increased with the digital age, the need for data analytics skills has exploded. Companies in every industry are now collecting vast amounts of data and need help making sense of it.
This demand is reflected in the statistics. According to IBM, the number of data analytics jobs is projected to grow by 25% by 2029. Other sources predict up to 50-60% growth. Either way, data analyst roles are expected to expand much faster than most professions in the coming years.
This growth is being fueled by companies’ desire to become more data-driven. With the fierce competition of the digital marketplace, businesses want to leverage data to understand customers better, identify profit opportunities, and gain a competitive edge. Data analysts are the professionals who can help them do this.
Lucrative Salaries
With high demand comes lucrative pay. Data analytics is considered a high-paying field. Here are some key salary stats:
- The average base salary for a data analyst is $67,377 per year according to Glassdoor.
- Payscale reports the average base salary as $70,346, with total pay including bonuses and profit sharing reaching $77,802.
- Top earners make well over 6 figures. The 90th percentile of data analysts earn $122,000 according to Payscale.
These salaries are well above the median salary across all occupations which Payscale reports as $55,609. They also represent strong earning potential early in one’s career, since data analyst is an entry-level position.
Abundant Job Opportunities
Not only are data analytics jobs lucrative, but there is also an abundance of job openings to take advantage of. Linkedin lists over 300,000 data analyst job postings in the United States. Some top companies frequently hiring include:
- Deloitte – over 1,800 listings
- Amazon – over 1,300 listings
- Accenture – over 1,000 listings
- Ernst & Young – over 900 listings
And these are just a handful of employers. Nearly every large company is now hiring data talent, as are many startups and smaller firms as well. There are opportunities across diverse industries too, like healthcare, finance, technology, retail, and more.
Future-Proof Your Career
Pursuing an in-demand career field is always savvy if you want job stability and security. With companies accelerating technology adoption due to the pandemic, data analytics skills are becoming even more essential.
Data analyst is listed as one of the most future-proof professions. The Bureau of Labor Statistics includes data analyst roles like Operations Research Analyst on its list of fastest growing occupations. It predicts 25% growth by 2029 compared to just 4% average growth across all occupations.
With fundamental skills in extracting insights from data, analytics professionals will continue thriving. Even if certain data technologies go out of fashion, analysts can adapt by learning new tools.
Career Advancement Potential
Data analytics not only offers a bright future, but also strong potential for climbing the career ladder. Here are some of the senior-level roles an entry-level data analyst can work up towards with some experience:
- Data Scientist
- Analytics Manager
- Vice President of Analytics
- Chief Data Officer
Data scientists in particular are one of today’s most elite professions. The median salary for data scientists is a whopping $117,288 according to Glassdoor. With the right skills and experience, data analysts positioning themselves as data science generalists can take advantage of this lucrative career path.
Intellectually Stimulating Work
Data analysis involves much more than just crunching numbers and generating reports. At its core, it is about investigating problems, uncovering hidden patterns, and telling stories with data.
For curious, analytical individuals, data analytics provides the excitement of exploration and discovery. Identifying interesting trends in data can be deeply intellectually satisfying.
Data analysts also get to exercise creativity through data visualization. Representing data graphically requires design thinking and innovation.
Lastly, data analysis has real impact. Analysts solve problems and uncover insights that can influence business strategy. Their work shapes important decisions and directions.
Learn Cutting-Edge Technologies
Data analysts get access to some of today’s most advanced technologies and tools. Here is a sample of platforms and programming languages used:
- SQL
- Python
- R
- Tableau
- Excel
The opportunity to upskill and stay on top of emerging tech is a big perk. Data analysts get paid to learn versatile, valuable skills that boost their professional marketability.
Downsides of Data Analytics Careers
Before you decide if data analytics is the right path, be aware of some potential downsides as well:
Stress Working with Massive Datasets
Modern data analysts must be able to work with huge, complex datasets from different sources. All this data can be overwhelming at times. Analysts must have the persistence and problem-solving skills to clean, combine, and make sense of it all.
Repetitive Data Tasks
Entry-level analysts spend a fair amount of time on repetitive tasks like data collection, organization, and quality assurance. These tasks are necessary but not intellectually stimulating. The job involves grunt work especially early on.
Situating Findings in Business Context
It’s not enough to simply generate insights from data. Analysts have to contextualize their findings and translate them into recommendations aligned to business goals. This can be challenging without a deep understanding of the business.
Self-Motivation and Time Management
Data analysts are often given substantial autonomy over their workflow. Staying focused and managing your own time effectively is critical to succeeding in the role.
Continuous Learning
Technology evolves rapidly in the data space. Analysts must constantly be learning new data tools and programming languages in order to stay relevant. Keeping up with the latest tech can be demanding.
Collaborating Across Teams
To get access to the right data, data analysts have to build relationships and influence colleagues across departments like IT, Dev Ops, and Business Intelligence. Navigating company politics can be frustrating.
Requirements to Become a Data Analyst
If you want to break into data analytics, what are the requirements? Here is a summary:
Technical Skills
- SQL – Querying databases
- Python or R – Coding for data tasks
- Data visualization – Creating charts/graphs in Tableau or Excel
- Statistics – Statistical modeling and analysis
- Data wrangling/ETL – Gathering, cleaning and transforming data
- Machine learning – Optional skill for advanced analysis
Soft Skills
- Analytical thinking – Identifying trends and patterns in data
- Curiosity – Motivation to investigate and problem-solve
- Communication – Explaining data insights clearly
- Business acumen – Understanding how analytics drives decisions
- Teamwork – Collaborating cross-functionally
Education
- Most have a bachelor’s degree, commonly in STEM fields, data science, or business analytics.
- Coursework in statistics, programming, databases, and data modeling is a plus.
- A master’s degree is not required but can be advantageous.
Many gain skills through data analyst certification programs and bootcamps in lieu of or in addition to formal education.
How to Get Started in Data Analytics
For those interested in breaking into data analytics, here are tips to gain entry-level experience:
- Complete online courses to learn in-demand data skills like Python and SQL.
- Pursue data analytics certificates from vendors like Google to boost resume credentials.
- Search for data fellowships and bootcamps that provide immersive training and career coaching.
- Highlight analytical projects, coursework and internships on your resume.
- Apply for data analyst jobs at companies of all sizes and across various industries.
- Consider contract or temporary data roles to build knowledge and gain exposure.
Conclusion
In summary, pursuing a career in data analytics comes with substantial upsides. Job opportunities and earning potential are strong now, and will continue growing rapidly in the future. Data analytics allows you to learn cutting-edge skills and technologies. Downsides to consider are stresses working with large datasets, repetitive tasks, and the need for continuous learning.
For those with an analytical and curious mindset, a career in data analytics is absolutely worth it. It allows you to uncover powerful insights that impact key business decisions and strategy. The high pay, abundant jobs, and bright outlook make data analytics one of today’s top career fields.