Financial analysis is important to predict the financial impact of any business decision. Financial analysts use business data to forecast and to decide the impact of any financial decision. They provide periodic reports to their clients which helps in keeping business in profit. There are senior as well as junior roles in the financial analysis sector. Often, financial analysts work on a junior level and open a lot of job roles for them by their performance. Let us see the pay progression for a career in financial analysis.
What is Pay Progression?
A pay progression is an increase in wages/salary because of the upliftment of the job role. For example, a junior financial analyst moves on to a senior role and is provided a hike in salary. It is different from salaries increased due to inflation or bonus given to the employees by any particular firm/company. Pay progression does depend on individual performance and career growth.
Pay Progression for a Career in Financial Analysis
If you have joined a firm as a junior financial analyst, you will be working under a senior analyst. One can directly become a senior analyst if he/she has an advanced degree in finance and analysis. Many junior analysts work on junior roles and then leave to gather advanced degree after gaining a little work experience. According to payscale.com, a junior analyst in the USA earns around $50,000 per year and according to surveys conducted by indeed, a senior financial analyst earns around $72,000 per year in the USA.
There are a lot of job roles in the financial analysis sector like financial advisers, financial managers, budget analysts, junior and senior analysts, etc. The upward mobility is quite high in the field of financial analysis and one can build a good career with his/her performance and results. One can work hard and can rise to good positions like the fund manager, chartered financial analyst, etc. which have high salaries.
The financial analysis must help your clients to make better financial decisions. A good financial analyst helps a company/firm in avoiding those business decisions which could result in financial instability. The more profit you provide to your clients, your reputation as a financial analyst will grow and you can move to senior job roles quickly.
Career Path in Financial Analysis
The major job roles in terms of hierarchy from junior to senior job roles in the financial analysis which will give you an idea of pay progression in this field are as follows:
- Junior Financial Analyst is the basic step in the field of financial analysis. A junior financial analyst forecasts possible investment opportunities & analyses the business decisions and produces detailed financial reports.
- Senior Financial Analysts are the ones who have an advanced degree in the field of finance and have some work experience. They review financial reports and make recommendations.
- A director is one who has massive work experience in the field of finance. He has a team to guide and coordinates audits.
- Chief Financial Officer (CFO) is responsible for managing debt, equity, and financial forecasting. According to Investopedia, the average salary of a CFO in the USA is around $371,548 per year which is massive.
One has to perform well in terms of advice, reports given to his/her clients to grow his/her financial analysis career. There is a lot of upward mobility in this sector thus opening the path for a hike in salaries. One can take up financial analysis courses available on the internet via elite sources to boost his/her knowledge and to apply it in their job. This article was all about pay progression and career opportunities in the financial analysis sector.
Also Read: Average Salary of Financial Analyst in India