Business Analyst vs Data Analyst: Salary Comparison

The salary premium for a business analyst compared to a data analyst is around 13 percent. In Australia, business analysts earn an average of $109,621, while data analysts make $97,309.

Why the difference? It’s not just about crunching numbers; it’s about who takes the lead. Business analysis is required to solve practical strategic problems. You guide decisions and have a more direct influence on profitability.

Overview

Business Analysts and Data Analysts may seem like they’re in the same field, but their roles differ. Business Analysts are the strategists, turning data into decisions that can make or break a company. They work with executives, craft solutions, and drive changes—earning over 10% more for their impact.

Data Analysts, on the other hand, focus on wrangling data and uncovering insights. Their work is crucial but often behind the scenes, supporting decisions made by others. They help businesses understand what’s happening but rarely call the shots.

In short, Business Analysts are more than number crunchers—they drive action. Data Analysts provide the data, but it’s the Business Analysts who turn it into results.

Salary Comparison

Let’s talk money. Business Analysts earn more—and not just a little more. The annual pay premium is over $12k based on the average salaries reported by job listing sites.

Table 1. Average salaries for analysts in Australia

Survey	Data Analyst	Business Analyst
Seek	$100,000 (8,796 jobs)	$115,000 (8,360 jobs)
au.Indeed	$92,726 (413 responses)	$102,613 (1,000 responses)
Glassdoor	$99,200 (359 responses)	$111,250 (5,924 responses)
Average	$97,309	$109,621

Source: Job posting websites. Updated: 20 August 2024.

According to Seek, BAs earn $115k per year, compared to the $100k data analysis generates. Glassdoor echoes this, with Business Analysts at $111,250 and Data Analysts at $99,200. The message is clear: if you want a salary premium, you need to be at the table where decisions are made, not just where the data is crunched.

The salary gap isn’t just a fluke. It’s a direct reflection of the different roles these professionals play. Business Analysts aren’t just data experts; they’re strategic leaders. Data Analysts, while indispensable, don’t carry the same level of strategic responsibility—and their pay reflects that.

What is a Business Analyst

A Business Analyst is a performance investigator and problem solver for an enterprise. They dive into business challenges, gather the facts, and craft solutions that drive change. They’re not working alone—they collaborate with everyone from IT teams to the C-suite, finding ways to achieve the company’s goals.

These analysts are more than just thinkers; they’re doers. When they identify a problem, they don’t just suggest a solution—they help implement it. Whether it’s a new IT system, a streamlined process, or a market expansion, business analytics is results orientated.

According to the BABOK Guide, BAs excel in all phases of analysis. They plan, gather requirements, analyse strategies, and manage solutions from start to finish. They handle everything, from identifying needs to ensuring successful implementation and evaluation.

What sets Business Analysts apart is their ability to communicate complex ideas clearly and persuasively. They bridge the gap between technical and business activities, making sure everyone is aligned and moving in the right direction.

What is a Data Analyst

Data Analysts work behind the curtain, turning raw data into something of potential value. They dig through mountains of numbers, find the patterns, and reveal the trends that can guide a company’s future. It’s technical work, requiring an eye for detail and understanding of data science.

Data analysis usually involves working solo, focusing on the data itself rather than the broader business strategy. Data analytics is more about supporting decisions than making them. The job is to clean, organise, and analyse data, then present findings in a way that others can understand and act on.

While data analytics is crucial to any data-driven decision, it is typically away from the strategic spotlight. It is also not very hard for those with a suitable temperament and technical abilities. Data analysis focuses on the data, not in shaping the overall direction of an enterprise.

Skill Differences

Business Analysts need a mix of technical and soft skills. They analyse data, communicate findings effectively to both technical teams and executives, and understand how their work fits into the company’s strategy.

Table 2. Skill profiles for analyst jobs

Skill	Business analyst	Data analyst
Data analysis	Required but with focus on strategic implications	Core focus, technical precision
Communication	Must communicate effectively with both IT and executives	Primarily focused on presenting data clearly
Strategic thinking	Essential for aligning data with business goals	Not typically required
Technical expertise	Basic to moderate technical skills needed	Advanced technical skills in data manipulation
Business impact	Expected to drive actionable business outcomes	Supports decisions, less involvement in implementation

Source: Lerna Courses analysis

Data Analysts, in contrast, are more focused on the technical side. They specialise in data collection, manipulation, and analysis. Their job is primarily about ensuring the accuracy of the data and presenting it clearly, with less emphasis on the broader business impact.

Education Requirements

While there is educational overlap, a data analysis career requires a stronger technical focus. Business analysis, by contrast, is more multi-disciplinary. Technical skills help but aren’t as critical.

To become a data analyst in Australia, aim for a bachelor’s degree in computer science, data science, or statistics. These programs emphasise data manipulation and programming. At a postgraduate level, consider a Master of Analytics or a Graduate Certificate in Data Analytics.

The pathways to become a business analyst, often involve degrees like business administration, economics, or finance. These fields stress strategy and communication. An MBA in Business Analytics or a Graduate Certificate in Business Analysis can further boost your credentials.

Why Business Analysts Earn More

Business Analysts earn more because they potentially carry more weight. Business analysis is not just crunching numbers; it's shaping decisions that affect the company. You need to understand business strategy, communicate effectively with management, and make recommendations.

It’s about influence. Business Analysts are in the rooms where decisions are made, and they need to be able to speak the language of business, not just data. Their ability to bridge the gap between the technical and business sides of an organisation makes them indispensable.

I found being immersed in data and coding very different from, say, sitting in the boardroom canvassing spending ideas. The skills required and mentality are vastly different. - Andrew Lancaster

In contrast, Data Analysts, while essential, have a narrower focus. Their work is critical, but is typically confined to the realm of data itself. They provide insights, but they’re not usually the ones deciding how to act on them. They do important work without having direct influence.

The Business Data Analyst

A Business Data Analyst generates analytics using profit-related data. This role is equivalent to a Data Analyst who specialises in business metrics or a Business Analyst with strong data skills.

Business data analysts may analyse sales figures, market trends, and customer behaviours to inform and guide strategic decisions. For those in this role, it can be advantageous to identify as a Business Analyst rather than a data specialist. Positioning yourself as a BA aligns you with more responsibility and higher pay.