Business analyst

As a business analyst, you'll work to understand how an organisation operates so you can identify opportunities for improvement and help deliver practical solutions. This could involve supporting a specific project, such as introducing new software, or improving wider business processes, services or products.

You may work on areas such as digital transformation, customer experience or the use of technologies including AI and automation tools. You'll also work closely with internal and external stakeholders, helping them understand the benefits and risks of proposed changes and how technology can support organisational goals. Strong communication, analytical and problem-solving skills are important in this role.

Types of business analyst

Many different job titles are used depending on the sector and employer, including:

• business architect
• business change analyst
• business systems analyst
• enterprise analyst
• digital business analyst
• IT business analyst
• management consultant
• process analyst
• product manager
• product owner
• requirements engineer
• systems analyst.

Working as a business analyst

As a business analyst, you'll need to:

• communicate with internal colleagues to understand the needs of departments and the organisation as a whole
• work with external stakeholders to understand and investigate feedback about the service, function, or product provided
• use data modelling practices and business analysis techniques to analyse your findings and create suggestions for strategic and operational improvements and changes
• consider opportunities and potential risks attached to the suggestions you make
• identify the processes and information technology required to introduce your recommendations
• gain agreement, usually from senior management, on the best method of introducing your recommendations to the business
• communicate the benefits of your recommendations across departments and help to address any uncertainty and concern
• produce written documentation to support your work, report on your findings and to present information clearly to stakeholders when necessary
• support staff and teams in making your recommended changes, including helping to resolve any issues
• ensure plans are made and processes are created to evaluate the impact of the changes made, including taking responsibility for overseeing and reporting on this evaluation
• work with project managers, developers and other specialists to help deliver business change projects successfully
• keep up to date with developments in technology, business strategy and industry trends that could affect the organisation.

What salary can a business analyst expect?

• Graduate or junior business analysts earn in the region of £24,000 to £33,000.
• Business analysts, with a few years' experience, generally earn between £35,000 and £65,000.
• Experienced business analysts can earn up to £80,000 and in some cases more than £100,000, particularly in the finance sector and in senior consultancy or technology roles.

Business analyst roles exist on a permanent basis in organisations, but you could also work on a freelance or contract basis once you've gained some relevant experience. As an experienced business analyst, you can expect to charge between £400 and £550 per day, depending on your sector, location and level of expertise.

Salaries vary depending on factors such as location, employer, sector and experience. Higher salaries are often available in London and in industries such as finance, technology and consulting.

Income figures are intended as a guide only.

How many hours do business analysts work?

You'll usually work standard full-time hours, Monday to Friday. Some evening or overtime work may occasionally be required when working towards project deadlines or during periods of organisational change.

If you're working as a contractor, you may need to work longer hours during the week and sometimes at weekends to complete projects within agreed timescales.

You'll need a flexible approach to working extra hours when the need arises. Some roles may also offer hybrid or flexible working arrangements, depending on the employer and sector.

What qualifications does a business analyst need?

Competition for business analyst positions is high, so having a degree is a distinct advantage. Relevant subjects include:

• business management
• business information/computing systems
• computer science
• data analytics
• economics
• finance
• information technology
• mathematics.

If you're a graduate from an unrelated subject, you could take a relevant postgraduate qualification, but check exactly what employers are looking for first as it may not be needed. Postgraduate courses in areas such as business analytics, data analytics, information systems or project management may be useful.

It's also possible to take an apprenticeship route to become a business analyst. This allows you to work and earn a salary while gaining the relevant qualification. For example, a Business Analyst Level 4 Apprenticeship. Several universities and some large companies (e.g. Amazon and BAE Systems) offer a Level 6 Business Analyst Degree Apprenticeship.

Relevant experience of managing projects can provide a pathway into working as a business analyst, although this is more likely if you have a few years' industry experience rather than if you're looking to begin your career in this field.

As well as your degree, employers value experience and transferable skills, such as the ability to work in groups, analyse data, use technology and manage projects, which could be related to your studies or extra-curricular activities. Experience gained through internships, part-time jobs, student projects or placement years can also be helpful.

Other degrees will be considered, especially if they show evidence of excellent analytical and research skills.

If you're a graduate from an unrelated subject, you could take a relevant postgraduate qualification but check exactly what employers are looking for first as it may not be needed. Search for postgraduate courses in computer science and IT.

As well as your degree, employers value experience and transferable skills, such as the ability to work in groups, analyse data, use technology and manage projects, which could be related to your studies or extra-curricular activities.

What skills does a business analyst need?

For an analyst role, you'll need:

• excellent communication and presentation skills, including explaining technical information to non-technical audiences
• strong analytical and problem-solving skills, with an evidence-based approach to decision making
• teamworking and collaboration skills to support projects and organisational change
• good organisational skills and the confidence to manage multiple projects and deadlines
• a positive attitude to change and an interest in improving processes, systems and services
• a good understanding of information technology and digital systems
• leadership and influencing skills to help gain support for new ideas and ways of working.

How can I get work experience as a business analyst?

Business analysis exists in almost every sector, from not-for-profit organisations to retail and financial services. It's a fast-paced and competitive area of work, so gaining relevant experience is essential.

You could apply for voluntary work with small enterprises or charities to help improve a particular function of their organisation. This can help you develop practical problem-solving, communication and project skills.

Take advantage of any year-in-industry, summer internship or placement opportunities on your course, as they provide the chance to gain first-hand practical experience and develop commercial awareness.

You can also contact organisations directly to enquire about work shadowing, showing enthusiasm for this area of work and an interest in their business sector.

It can also be helpful to become a student member of a relevant professional body such as the International Institute of Business Analysis UK (IIBA UK). This gives you access to events, training resources and networking opportunities, which can demonstrate your commitment to the profession and may help you build useful industry contacts.

Find out more about the different kinds of work experience and internships that are available.

Who are the main employers of business analysts?

You can find work as a business analyst in a range of sectors, including the public and private sectors, from large multinational companies to small and medium-sized enterprises (SMEs). There are opportunities to work in areas such as finance, technology, healthcare, retail, government, education and consultancy. Employers may offer permanent roles or fixed-term contracts to work on specific projects.

Many business analysts with industry experience work on a self-employed or consultancy basis.

Individual companies advertise their own business analyst vacancies, so search the websites of organisations that interest you. You could also make a speculative application or use professional networks, such as those run by professional bodies and industry groups. Graduate schemes and recruitment agencies can also be useful routes into the profession.

Look for job vacancies at:

• CWJobs
• SimplyHired
• eFinancialCareers
• Women in Tech Jobs

Professional development and career prospects

Many organisations offer professional development through in-house training, mentoring and on-the-job learning. It's important to keep your analytical, technical and communication skills up to date through continuing professional development (CPD) and by staying aware of trends in business, technology and data analysis.

Training in areas such as change management, data analytics, information systems and project management can be particularly useful. You may also choose to join a professional body such as BCS (The Chartered Institute for IT), the Institution of Analysts and Programmers (IAP) or the International Institute of Business Analysis UK (IIBA UK), which offer training, qualifications, networking opportunities and support with CPD.

As an entry-level business analyst, gaining experience across different projects and sectors can help your career development. With experience, you may choose to specialise in areas such as data analytics, digital transformation or consultancy, or progress into senior, management or director-level roles.

Some experienced business analysts also move into self-employed consultancy or related careers such as project management, IT consultancy or management consultancy.