The world of research has seen major changes in the last few years with the growth of artificial intelligence, machine learning and data analytics. The skills required for a research analyst have also changed, as the industry constantly adapts to new technologies.
While these changes have been a mixed bag for some analysts, it has opened up many new opportunities for others. Research analysts are now having to update their skill set in order to stay relevant in their careers. Here’s what you need to know about this career in 2021.
Research Analyst educational requirements
When you want to become a research analyst, one of the first things you should think about is how much you need to study. According to research, 65.4 percent of research analysts graduate from a Bachelor’s degree program, and around 16.7 percent of research analysts are Master’s graduates.
It’s required that you pass the Series 86 examination, known as the Research Analyst exam, which will assess a registered representative’s ability to carry out his duties as a research analyst. It is recommended to study for 80 hours over the course of four weeks in preparation for the exam, so taking an exam prep course will certainly help you.
According to Glassdoor, a research analyst makes $56,893 on average. An entry level research analyst can expect a median salary of $40k a year. Senior research analyst salaries can amount to $84k.
The U.S. Bureau of Labor Statistics also notes that “Employment of market research analysts is projected to grow 18 percent from 2019 to 2029, much faster than the average for all occupations.”
What does a research analyst do?
Data from numerous sources is gathered and analyzed by research experts. These professionals then utilize this information to provide managerial recommendations. Through their research, they allow businesses to determine the best price and target market for their products.
As a research analyst, you examine the problems that businesses, organizations, and government agencies confront, such as equipment, personnel, schedules, and financial issues.
You will use a variety of approaches to provide prospective solutions, including statistical analysis, simulations, computer modeling, and decision-making. You might propose, for example, a proposal that improves the efficiency of a company’s supply chain.
Also, data analysis should not be confused with research analysis. Data analytics is typically associated with the fields of data science, statistics, mathematics, or science. Research analysts are a type of securities analyst who evaluates a company’s assets and securities from an investigative standpoint.
3 Key skills to excel in the research analyst career
Math and Finance
As a research analyst, you will often work with large amounts of data, requiring a high degree of mathematical and statistical expertise. It goes beyond the ability to create columns, as calculators do.
To be a research analyst, you must comprehend the relationships between economic data and be able to correlate data patterns. If you have high statistics in an unexpected area, for example, you must seek for locations that may have an influence on this category.
You must also be acquainted with calculations, such as percentages and ratios, and understand their meanings in your studies.
Office and Presentation Software
In contrast to past research analysts who laboriously gathered data by scanning piles of handwritten notes and physically performing computations, you will rely heavily on your computer to conduct much of your work for you.
It does, however, imply that you will produce professional-grade reports, complete with graphs, charts, and diagrams that adequately show your points.
From Microsoft’s fundamental Office Suite, Excel, and PowerPoint to software mapping, financial analysis, and desktop publishing, you’ll need to know which software is available and how to use it.
Written and Verbal Communication
For the role of research analyst, more than just financial knowledge is required. Not all of the information is financial in nature, and the explanations are frequently complicated. As a result, research analysts must be able to grasp and evaluate complex material.
They must write clearly and succinctly to explain and summarize their knowledge and findings. The role of research analyst frequently requires you to present your findings to a group of colleagues or managers, therefore you must be able to speak comfortably in front of a group.