Management Analysts: Salary Overview
Management analysts recommend ways to make an organization more profitable by reducing costs and increasing revenues.
Their job description typically includes, among other things, gathering relevant information about the company and the problems that have to be addressed, interviewing personnel, conducting onsite observations, analyzing financial data, developing solutions, and making recommendations to management.
Some management analysts work for the organization that they analyze but most of them are consultants who work on a contractual basis.
According to the Bureau of Labor Statistics, the median annual wage for management analysts was $85,260 as of May 2019, which means that half of all workers in this profession earned less than this amount while half earned more.
Salaries vary depending on a wide range of factors, including experience level, the industry of employment, expertise, education, and region.
The lowest 10 percent of all management analysts reportedly earned less than $49,700 while the highest 10 percent earned more than $154,310 a year.
Those who are hired by a consulting firm are usually paid a base salary and they also earn year-end bonuses.
Self-employed analysts are paid directly by their clients by the hour or by the project.
A management analyst’s job prospects and earning opportunities also depend on his/her ability to sell the services he/she provides.
The organizations that need the help of a management analyst usually request proposals from more consultants and companies who specialize in this line of work.
Those who are interested then submit proposals explaining how they will perform the tasks, what the schedule will be, and how much it will cost.
After analyzing all the proposals, the organization picks the one that best suits its needs and budget.
Management Analyst Salary by Industry
According to the Bureau of Labor Statistics, management analysts held approximately 876,300 jobs in the United States in 2018, most of them working for companies that provide professional, scientific, and technical services, by the government, or being self-employed workers.
The average annual wage reported by management analysts who worked for companies in the field of management, scientific, and technical consulting services was $106,160.
Management analysts in the federal executive branch reportedly earned, on average, $94,650 a year while those employed by state governments earned $66,450 a year.
The average annual wage was $103,350 for management analysts employed in the field of computer systems design and related services and $92,070 for those who worked in the field of management of companies and enterprises.
According to the report published by BLS, the highest-paying field for management analysts was the field of other personal services- a sector where the reported average annual salary for this profession was $152,530.
Other high-paying fields for this occupation are independent artists, writers and performers, residential building construction, highway, street, and bridge construction, and the field of oil and gas extraction.
However, these high-paying fields usually hire only a few management analysts so job opportunities may not occur very often in these sectors.
Salaries for this profession also vary depending on the state of employment.
The report published by BLS shows that the top-paying state for management analysts was New York, where the average annual wage for this profession was $112,280 as of May 2019.
Other high-paying states where the average annual wage reported by management analysts was above the $100,000 mark are Massachusetts, the District of Columbia, New Jersey, and Connecticut.
On the other hand, management analysts in Arkansas and Mississippi reported average annual wages of $68,070 and $72,940, respectively.
In conclusion, becoming a management analyst can help you earn a pretty decent living especially after a few years of experience but salaries for this profession vary widely based on a variety of factors.
Having a master’s degree in business, economics, finance, marketing, or a related field and holding a certificate issued by the Institute of Management Consultants USA can give you a competitive advantage on the job market and it may also improve your earning prospects.
* Based on information from the May 2021 salary report from the BLS. The figures represent accumulated data for all states of employment for Management Analysts. BLS data represents averages and medians for workers at all levels of education and experience. This data doesn't represent starting salaries.
* Employment conditions in your area may vary.