Data Analyst Job Description: A Guide for Hiring Managers

Companies generate enormous amounts of raw data daily, ranging from sales figures to emails sent to web traffic. Statista projects the daily data output to reach a staggering 181 zettabytes by 2025. Most of the data is only as valuable as the insights companies can derive from it. Much of it needs cleaning, sorting, manipulating and analyzing to make sense. The analyst’s job is to turn this raw data into actionable intelligence to support strategic decision-making. 

Demand for talented data analysts with good business sense and data manipulation skills is rising. The Bureau of Labor Statistics projects opportunities for these tech professionals to grow by 36 percent from 2022 to 2033, much faster than the national average. This data analyst job overview looks at the key duties, qualifications, salary expectations and top skills of individuals in this position. It shows tech recruiters how to craft a compelling data analyst job description.

What Does a Data Analyst Do? 

As the gatekeeper of a company’s data, the data analyst plays a crucial role in transforming raw data into actionable intelligence. They collect, organize and interpret statistical information to help colleagues and company executives make decisions.

Key data analyst responsibilities include:

• Analyzing data to identify patterns and opportunities using statistical tools
• Setting up processes and systems to enable data handling efficiency
• Identifying new ways of using data
• Creating reports, charts and data visualizations to communicate trends 
• Designing and maintaining data systems and databases 
• Extracting data using application programming interfaces, manual extraction, automation and database querying
• Collaborating with system developers, programmers and engineers to improve processes 
• Manipulating data in various formats.

Data Analyst Skills and Qualifications

Education

Employers expect data analysts to have a relevant educational background:

• Bachelor’s degree in statistics, mathematics, computer science, economics or a related field
• Master’s degree in data science, statistics, analytics, or a related field for senior roles

Professional Experience

A data analyst typically needs the following work experience:

• Entry level: 1-2 years of experience in data analysis or a related field. This often includes internships or relevant coursework.
• Midlevel: 3-5 years of experience. Professionals at this stage of their careers are proficient in data cleaning, analysis and visualization. They can work on solo projects and develop statistical models.
• Senior level: Over 5 years of experience. Senior analysts often take charge of projects, design and implement advanced models, mentor others and provide strategic advice and recommendations to executives. 

Technical Skills

Essential hard skills for a data analyst include:

• Data analysis skills to inspect, clean, transform and create models using SQL, Python, R and statistical software to gain insights that will support decision-making.
• Data visualization skills to create and present reports and visualizations using Power BI, Tableau, or Python libraries.
• Data mining skills to sort through massive data sets to identify patterns or trends and extract valuable and actionable information to guide strategy.
• Data cleaning skills to remove or modify incomplete, inaccurate, irrelevant or poorly formatted data to avoid misleading patterns or wrong conclusions.

Soft Skills

Data analysts interact with colleagues and stakeholders and must have excellent communication and collaboration skills. They also need strong problem-solving and critical thinking skills and the capacity to analyze information to draw insights.

Data Analyst Salary Expectations

The salary of data analysts can vary depending on their experience, location, company size and market trends. Here’s an overview of their salaries based on the latest data from PayScale. 

• Entry level (1-3 years): $46,000 to $80,000 per year
• Mid-career (3-5 years): $55,000 to $102,000 per year
• Senior level (7-9 years): $52,000 to $113,000 per year

Data Analyst Work Hours and Benefits

Most data analysts work for around 40 hours a week, from Monday to Friday, which is typical with a full-time schedule. Their workload can vary depending on project demands and deadlines. Industry and company size can influence working hours. Because of the data-driven nature of this position, most tech companies support remote or hybrid work arrangements.

Some of the benefits associated with data analysis roles include:

• Health insurance
• Paid time off
• Opportunity to work on exciting projects
• Access to the latest tools and business intelligence platforms
• Sponsorships for certification courses in data analytics
• Opportunities to attend industry conferences 

Hire the Top Tech Talent

Data analysts help companies draw insights from raw data. Knowing what a data analyst’s role entails can help you craft an effective data analyst job description. Here are the key takeaways.

• A bachelor’s degree in mathematics or economics and two years of experience is vital for this role. 
• Data analysis, visualization and cleaning are essential technical skills. 
• Data analyst salaries depend on their experience, location and company size.

 Check out Dice hiring resources to learn more about hiring and interviewing for tech roles.

Data Analyst FAQs

What Are the Most In-Demand Technical Skills for Data Analysts in 2024?

The most sought-after skills among data analysts include:

• Statistical programming with R or Python
• Machine learning
• Probability and statistics
• Data management 
• Data visualization

What Are Some Common Challenges Faced by Data Analysts in Their Day-to-Day Work?

• Lack of resources, especially automation tools, 
• Bad visualizations
• Data privacy and security issues 
• Constantly evolving tools and technologies.

How Does the Role of a Data Analyst Differ from That of a Data Scientist?

A data analyst manipulates raw data to create reports or dashboards, while a data scientist uses data analysis, machine learning and software engineering to develop advanced models.

What Emerging Technologies or Tools Should Data Analysts Know?

A data analyst needs to be familiar with these tools and technologies:

• R programming: This tool enables data analysts to manipulate and process data as well as perform statistical computing tasks.
• SQL: Used to edit and extract data from MySQL, SQLite and other databases.
• Spark: A useful platform for computing large data sets with millions of rows. 
• Microsoft Power BI: A cloud-based solution that allows data analysts to merge data sources, analyze data sets and present results in visual formats. 
• Tableau: A powerful visualization tool to analyze raw data from different sources.

How Do Data Analyst Salaries Vary by Industry and Geographic Location?

Experienced data analysts earn higher salaries than those in entry-level positions. The company’s size and type also determine the data analyst’s wages. The pay scale also varies by industry. For example, healthcare and financial analysts earn more than marketing analysts.

What Is the Career Path for Data Analysts?

Starting as junior data analysts, these professionals can work under the guidance of an experienced analyst. After three years, they can work as lead data analysts or take up data science roles. Some progress into management roles, while others pursue consultancy roles in finance, business or healthcare.