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How to Become a Data Analyst

By Nikita Ross


The world is continuously evolving into a data-driven society, relying on computing, machine learning, and technology. The recent rise of AI is rapidly changing how we interact with data and use it in our daily lives. However, one thing remains the same: humans are integral in collecting and analyzing data to make decisions.

If you are captivated by the immense power of data and eager to embark on a career in data analysis, read on! In this article, we’ll cover everything you need to know about becoming a data analyst, from educational requirements to career progression and work-life balance.

Career Summary

Data Analyst Salary

How much you’ll earn as a data analyst will depend on several factors, including location, experience, and company size. Here is the pay trajectory for data analysts in the US:

  • Entry Salary (US$52k)
  • Median Salary (US$80k)
  • Executive Salary (US$120k)

The baseline data analyst salary is higher than the national median income for full-time employees, which was $60,575 in 2022.

What does a Data Analyst do?

Data analysts collect, analyze and translate data into valuable information for key decision-makers and industry leaders. They collaborate with stakeholders, develop reports, and use statistical tools to uncover trends, identify opportunities, and optimize business processes.

Data Analyst Career Progression

The data analyst career path can vary depending on individual aspirations, industry, and organization.

However, here’s a typical career trajectory:

  • Entry-Level Data Analyst: Many data analysts begin their careers in entry-level positions, where they support more experienced analysts and teams. They assist with data collection, cleaning, and basic analysis tasks.
  • Data Analyst: After gaining some experience, data analysts take on more independent responsibilities, such as performing data analysis, creating reports, and contributing to data-driven decision-making processes.
  • Senior Data Analyst: With further experience and expertise, data analysts take on complex projects, handle larger datasets, and collaborate with stakeholders to provide valuable insights and recommendations based on data analysis.
  • Data Analytics Managers: In management roles, data analysts have a broader scope of responsibilities, involving leadership and mentoring team members. They oversee projects, design and implement data analysis strategies and contribute to high-level decision-making processes.
  • Data Scientist/Advanced Analytics Roles: Some data analysts specialize further by transitioning into data science or advanced analytics roles. These positions involve more advanced statistical modeling, machine learning, and predictive analytics to derive actionable insights from data.
Data Analyst Career Progression


  • Flexible and remote work options.
  • Seeing tangible results from efforts.
  • Potential for growth and career progression.
  • Baseline salary higher than the national average.
  • High-demand skill set with plenty of job opportunities.
  • Potential to work collaboratively and autonomously.


  • The work can be tedious and tiresome.
  • Difficulties translating complex data to non-proficient stakeholders.
  • Periods of intense work and tight deadlines.
  • Continuous need for skill development in an evolving field.
  • Sedentary work.

Useful Skills to Have as a Data Analyst

  • Analytical Mindset
  • Curiosity and Eagerness to Learn
  • Attention to Detail
  • Problem-solving Skills
  • Strong Quantitative Skills
  • Effective Communication
  • Business Acumen

Popular Data Analyst Specialties

  • Business Intelligence (BI) Analyst
  • Data Visualization Analyst
  • Financial Analyst
  • Marketing Analyst
  • Operations Analyst

How to become a Data Analyst

Data Analyst 5 Steps to Career

You can become a data analyst through a combination of formal (university) education, continuous education (professional development courses), skills development, and experience over time.

Here are some steps when determining how to become a data analyst.

Education Requirements

Do I need a Degree to Become a Data Analyst?

A degree isn’t always a strict requirement to become a data analyst, but it can significantly enhance your chances of securing a job in this field. Many employers prefer candidates with a bachelor’s or master’s degree in a relevant discipline, such as statistics, mathematics, computer science, or data science. These degrees provide a solid foundation in data analysis techniques, programming languages, and statistical modeling.

Why is it Important to Get a Degree?

As the demand for data analysts grows, so too will the competition. Getting a degree in a relevant field of study can help you create a foundation of knowledge for your role and stand out from the competition during the hiring process.

A degree enhances industry recognition, making candidates more credible and competitive in the job market. It opens up diverse job opportunities in various industries and allows for specialization in specific areas of interest. Additionally, obtaining a degree facilitates networking and professional connections, which can lead to internships, mentorship, and career advancement.

How Long Does it Take to Get a Degree?

The time it takes to earn a degree in data analytics or a related field can vary depending on several factors, including the level of the degree (undergraduate or graduate), the type of program (full-time or part-time), and the specific requirements of the university or college you attend.

A bachelor’s degree in these fields typically takes around four years to complete. In comparison, a master’s degree takes an additional one to two years beyond the bachelor’s degree, depending on whether you pursue it full-time or part-time.

How Much Does it Cost to Study Data Analytics at a University?

The cost of a bachelor’s degree can range from around $10,000 per year at a public university for in-state students to $30,000 or more per year at a private university. This estimate includes tuition, fees, and other expenses but does not account for financial aid, scholarships, or grants that may help offset the cost.

For a master’s degree, the cost can also vary significantly. Public universities may charge around $10,000 to $30,000 annually, while private universities can range from $20,000 to $50,000 yearly.

Alternate Courses of Study

Instead of a degree, you can focus on acquiring practical skills and experience through online courses, boot camps, or self-study.

It’s not uncommon for individuals to have prior experience in related roles, such as research assistants, business analysts, financial analysts, or market researchers. These roles often provide foundational skills and experience in data analysis, which can be valuable when transitioning to a dedicated data analyst position.

Additionally, obtaining certifications like Certified Analytics Professional (CAP), Microsoft Certified: Data Analyst Associate, or a Google Data Analytics Certificate can significantly bolster your credentials and demonstrate your expertise in data analysis to potential employers.

Various online platforms, universities, and educational websites provide comprehensive data analysis courses and programs.

These online resources often cover:

  • Data Manipulation
  • Statistical Analysis
  • Data Visualization
  • Programming Languages (such as Python or R)
  • Machine Learning

Many of these courses are designed and taught by industry experts.

By leveraging online education, you can learn at your own pace, access a wide range of learning materials, and often participate in interactive exercises and projects to apply your knowledge in practical scenarios. Online platforms also offer opportunities to engage with communities of learners, seek guidance from instructors, and collaborate on real-world data analysis projects.

6 Web Resources to Learn Skills and Stay Up to Date with Data Analytics Trends

Continuous learning and staying updated with the latest tools and techniques are crucial in the data analysis field. Here are some web resources that can help you stay up to date with the latest news and trends in data analytics:

  • Analytics Insight: A platform that focuses on data analytics, AI, and emerging technologies. It provides news, analysis, interviews, and industry reports related to data analytics and its applications across various sectors.
  • Dataconomy: A web resource that features articles, interviews, and news on data analytics, data science, AI, and big data. It covers a wide range of industries and provides insights into the latest trends and advancements.
  • The Data Warehousing Institute (TDWI): TDWI provides resources, articles, webinars, and industry research on data analytics, data management, and business intelligence. It covers topics like data governance, data integration, and analytics strategy.
  • KDnuggets: A popular website that covers topics related to data analytics, machine learning, artificial intelligence, and big data. It provides news, tutorials, interviews, industry trends, and resources for data professionals.
  • Data Science Central: An online community and resource hub for data scientists and analytics professionals. It features articles, discussions, webinars, and job listings related to data science and analytics.
  • Towards Data Science: A publication on the Medium platform that offers a wide range of articles and tutorials on data analytics, machine learning, and data science. It covers various topics, from beginner-level introductions to advanced techniques.

Practical Experience

While a degree is not always a strict requirement for data analyst roles, employers typically value practical skills and experience. Therefore, it’s advisable to work on personal projects, participate in data analysis competitions, or seek internships or freelance opportunities to gain hands-on experience and build a strong portfolio. You should explore internship opportunities with companies, research institutions, and organizations in your area of interest.

What are the Internship opportunities for a Data Analyst?

Internship opportunities may include:

  • Data Analyst Intern: Many companies offer data analyst internships where you can work alongside experienced data analysts and gain hands-on experience in data manipulation, analysis, and visualization. These internships may involve working with real datasets, assisting with data-driven projects, and contributing to data-driven decision-making processes.
  • Business Intelligence Intern: Business intelligence internships focus on utilizing data analysis techniques to support business operations. Interns may assist in creating reports and dashboards, analyzing key performance indicators (KPIs), and providing insights to optimize business strategies.
  • Data Science Intern: Some companies offer internships specifically geared toward data science. These roles often involve more advanced data analysis techniques, statistical modeling, and machine learning. Interns may work on projects related to predictive analytics, data mining, or developing machine learning models.
  • Market Research Intern: Market research internships can provide valuable experience in data analysis within the context of market trends and consumer behavior. Interns may assist in collecting and analyzing market data, conducting surveys, and generating insights to support marketing strategies.
  • Healthcare Data Analyst Intern: In the healthcare industry, internships focused on healthcare data analysis are available. These internships may involve analyzing patient data, healthcare trends, and outcomes to inform decision-making, process improvement, or research initiatives.
  • Government and Non-profit Internships: Government agencies and non-profit organizations often have internship programs that involve data analysis. These internships may include working with social or economic data, policy analysis, or program evaluation.

Check internship platforms, job boards, and university career services to find relevant internships. Networking, attending career fairs, and reaching out to professionals in the field can also uncover potential internship opportunities.

What Skills Will I Learn as a Data Analyst?

As a data analyst, you will develop a range of skills that are valuable in the field of data analysis.

Some key skills you can expect to learn and enhance include:

  • Data Manipulation: You will learn techniques to extract, clean, transform, and organize data for analysis using tools like SQL or programming languages like Python or R.
  • Data Analysis and Visualization: You will acquire skills in analyzing data using statistical methods, identifying patterns and trends, and communicating insights effectively through visualizations and reports using tools like Excel, Tableau, or Power BI.
  • Programming and Scripting: You will learn programming languages such as Python or R to perform data analysis, automate tasks, and build data models.
  • Statistical Analysis: You will gain knowledge of statistical concepts, hypothesis testing, regression analysis, and other statistical techniques to derive insights and make data-driven decisions.
  • Data Querying and Database Management: You will learn to work with databases, write SQL queries, and understand database management principles.
  • Data Mining and Machine Learning: You may acquire skills in data mining techniques and machine learning algorithms to uncover patterns, build predictive models, and solve business problems.
  • Critical Thinking and Problem Solving: Data analysts need to think critically, approach problems analytically, and formulate logical solutions based on data analysis.
  • Communication and Presentation: Effective communication skills are essential to convey complex data analysis results and insights to stakeholders clearly and concisely.

Depending on the role and structure of your organization, you’ll also learn other soft skills like organization, project management, and effective collaboration.

What is the Work-Life Balance of a Data Analyst?

The work-life balance of a data analyst can vary depending on several factors, including the organization, industry, project deadlines, and individual preferences.

Here are some key considerations, pros, and cons of the role:

  • Flexible Work Arrangements: Data analysis roles often offer flexibility in terms of work arrangements. Many organizations are open to remote work options, allowing data analysts to work from home or remotely. This flexibility can contribute to a better work-life balance, reducing commuting time and offering more control over your schedule.
  • Project-Based Deadlines: Data analysts may work on projects with specific deadlines, which can sometimes lead to periods of intense work. The workload might be higher during these times, requiring extra hours or focused effort to meet project timelines. However, once the project is complete, there may be periods of relatively lower intensity, allowing for a more balanced schedule.
  • Continuous Learning: The field of data analysis is dynamic and ever-evolving. Keeping up with new tools, techniques, and industry trends often requires ongoing learning and professional development. Balancing work responsibilities with self-improvement efforts can be a consideration for maintaining a work-life balance.

As a data analyst, it’s important to set boundaries, prioritize tasks, and manage time effectively to achieve a healthy work-life balance. Communicating expectations with your team, practicing self-care, and finding ways to recharge outside of work are also essential.

While data analysis roles generally offer flexibility, the work-life balance can be influenced by project deadlines, ongoing learning, and personal commitments. Remote work opportunities, average working hours, and flexible schedules can contribute to a better work-life balance. However, it’s important to be mindful of project demands and strive for effective time management to maintain a healthy equilibrium between work and personal life.

What’s the Career Outlook for Data Analyst?

The career outlook for data analysts is overall positive. The U.S. Bureau of Labor Statistics predicts significant growth in this field over the next decade. Data analyst roles are expected to grow 23% between 2021-2031, compared to the overall 5% growth across all industries.

The field offers diverse industry applications, strong job growth, competitive salaries, and advancement opportunities. However, competition for positions is significant, so aspiring data analysts should focus on building a strong skill set, gaining practical experience, and staying updated with industry trends to enhance their job prospects.

Data Analyst Popular Career Specialties

What are the Job Opportunities for a Data Analyst?

Data analysts have a wide range of job opportunities across various industries and sectors. As businesses increasingly rely on data-driven decision-making, the demand for data analysts continues to grow.

Here are some common job opportunities for data analysts:

  • Business Intelligence Analyst: Analyzing and interpreting data to provide insights and support strategic decision-making within an organization’s business intelligence systems.
  • Financial Analyst: Analyzing financial data, assessing investment opportunities, and providing insights for budgeting, forecasting, and financial planning.
  • Marketing Analyst: Evaluating marketing campaigns, analyzing customer behavior and preferences, and providing insights to optimize marketing strategies and increase customer engagement.
  • Operations Analyst: Analyzing operational processes, identifying areas for improvement, and implementing data-driven solutions to enhance efficiency and productivity.
  • Risk Analyst: Assessing and managing risks by analyzing data related to credit, market trends, or operational risks to support risk mitigation strategies.
  • Data Quality Analyst: Ensuring the accuracy, completeness, and integrity of data by developing and implementing data quality processes and standards.

These are just a few examples of the job opportunities available for data analysts. The field of data analysis is diverse, and the demand for skilled professionals continues to increase as organizations recognize the value of data-driven insights.

Who Hires Data Analysts?

Regarding industries, data analysts are in demand across various sectors, including:

  • Finance and Banking: Banks, investment firms, insurance companies, and other financial institutions hire data analysts. They analyze financial data, perform risk assessments, detect fraudulent activities, conduct market research, and assist in investment decision-making. For example, a data analyst in a bank may analyze customer transaction data to identify patterns of fraudulent behavior and develop fraud detection models.
  • Healthcare: Data analysts interpret patient records, clinical data, and health outcomes in the healthcare industry to identify trends, improve patient care, and optimize operations. They may work with electronic health records (EHR) systems, conduct data-driven research, and support healthcare professionals in making evidence-based decisions. For instance, a data analyst in a hospital may analyze patient data to identify factors contributing to readmissions and develop strategies to improve patient outcomes.
  • Retail and E-commerce: Retail companies and e-commerce platforms employ data analysts to understand customer behavior, optimize pricing strategies, manage inventory, and personalize marketing campaigns. They analyze sales data, customer demographics, website analytics, and social media data to uncover insights that drive business growth. For example, a data analyst in an e-commerce company may analyze customer purchase history and browsing patterns to recommend personalized product recommendations and improve the overall shopping experience.
  • Technology and Software: Data analysts are sought after by technology companies and software providers. They analyze user behavior data, product usage metrics, and perform A/B testing to optimize software performance, enhance user experience, and make data-driven product decisions. For instance, a data analyst in a software company may analyze user feedback and usage data to identify areas for product improvement and prioritize feature development.
  • Consulting: Consulting firms often hire data analysts to provide data-driven insights to clients across various industries. They work on projects ranging from market research and customer segmentation to process optimization and financial analysis. Data analysts in consulting firms leverage their analytical skills to extract insights from data and communicate them effectively to clients. For example, a data analyst in a consulting firm may analyze market trends, consumer surveys, and competitor data to help a client identify new market opportunities and develop a market entry strategy.
  • Government and Non-profit: Government agencies and non-profit organizations employ data analysts to support evidence-based decision-making, policy development, and program evaluation. Data analysts may work with large datasets, conduct statistical analyses, and provide insights to address social issues. For instance, a data analyst in a government agency may analyze public health data to identify disease outbreaks, monitor the effectiveness of interventions, and allocate resources for healthcare initiatives.
  • Manufacturing and Supply Chain: Data analysts play a vital role in manufacturing industries, helping optimize processes, improve quality control, and manage supply chains. They analyze production data, perform root cause analyses, and use predictive modeling to optimize production schedules and minimize waste. For example, a data analyst in a manufacturing company may analyze production data to identify bottlenecks, improve efficiency, and reduce costs.

These are just a few examples, as data analysis has applications in almost every sector where data-driven decision-making is essential.

Should I become a Data Analyst?

You may still wonder: is data analyst a good career? Well, if you love numbers, problem-solving, and analyzing information, the data analyst career path may be right for you. Data analysts are in-demand with the potential for future growth and excellent compensation. Demand for data analysts is expected to continue growing over the next decade and beyond.

Take some time to review the key points and pathways outlined above to determine whether they fit your career goals. Explore the educational requirements and development opportunities to start building your portfolio and experience to set yourself up for success.

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About the Author

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