Why is it so hard to get a job as a financial analyst?
The competition is too great, and undergraduate or advanced degrees are too common in the job market to have a serious chance of applying for an analyst position with less than a bachelor's degree.
The most common reasons financial advisors quit are lack of fulfillment, difficulty finding clients, and burnout. Over 90% of financial advisors do not last three years, which means that there is a very low retention rate for financial advisors. To be a successful financial advisor, you need to be able to close a deal.
Competition for these jobs is fierce, especially among analysts new to the field. The Bureau of Labor Statistics projects 8.2% employment growth for financial analysts between 2022 and 2032. In that period, an estimated 68,000 jobs should open up. Financial analysts keep their fingers on the pulse of the economy.
The field is also growing at a steady pace. The BLS projects employment for financial and investment analysts to grow by 8% from 2022 to 2032, which is faster than the average projected growth for all jobs. This amounts to about 24,200 new financial analyst jobs by 2032.
Applying for entry-level finance jobs can be overwhelmingly competitive just because of the number of people graduating with finance degrees yearly, and if you're able to, getting a bachelor's degree will help you stand out against the competition.
Like every field, there are also drawbacks to a career in finance. They can include high stress, big responsibility, long working hours, continuing education requirements, and, in some cases, a lack of job security—the finance industry is generally quite cyclical.
According to the U.S. Bureau of Labor Statistics, the median financial analyst salary is around $85,000, but this number can be misleading because the average financial analyst salary is closer to $100,000 due to the extreme growth in earnings over time.
Minimum GPA: Minimum cumulative 3.3 GPA required, 3.5 GPA preferred.
An analytical mindset, strong business acumen, effective communication skills, ethical integrity, adaptability, attention to detail, and being a team player are all essential traits that make exceptional financial analysts stand out.
In the corporate world, senior analysts can become treasury managers supervising working groups within their departments. A standout performer may rise through the ranks to become a chief financial officer (CFO) or chief investment officer (CIO) responsible for all of the company's financial activities.
What is the hardest part of being a financial analyst?
Being a financial analyst can be a tough gig because it requires a lot of complex thinking, preparation, and hard work. Many analysts report that the hardest part of their job is communicating sophisticated analysis and insights to decision-makers in a way that is both comprehensible and actionable.
They Have a Great Degree of Job Security
Because finance is an essential industry, the need for qualified Financial Analysts is a constant, regardless of market conditions. Even when the market takes a dip, organizations still look to Financial Analysts to help them manage their finances.
Career advancement for senior analysts can include becoming a portfolio manager or fund manager where they manage a company's investment portfolio. They have the ability to move into high ranking roles in investment banking.
- Get a finance education. Most entry-level jobs in this field require at least a bachelor's degree in finance, business, or a related field. ...
- Gain experience in finance. ...
- Hone your finance skills. ...
- Search online for finance jobs.
The talent shortage facing almost 60% of the 1,408 finance professionals surveyed in the AFP's report, comes despite the fact that salaries increased more in the previous year than they have in the eight years prior.
Compensation: Competitive finance roles generally offer compensation packages inclusive of a base salary, bonuses, and other financial benefits. This bullet becomes a stronger piece of the competitive consideration when thinking through roles individuals can land somewhat easily yet with very high starting pay.
- Most stressful job in finance : Investment Banker (M&A or capital markets professional) ...
- Second most stressful job in finance : Trader. ...
- Third most stressful job in finance : Risk management & Compliance.
The national average salary for accountants is $54,603 per year , while the national average salary for financial analysts is $71,345 per year . Financial analysts typically make more money than accountants, and they often have higher starting salaries.
Earning potential may increase with experience, as analysts with over 10 years of experience report an average salary of $79,804. In contrast, the average base salary for financial advisers is $72,995 per year .
| Years of experience | Per year |
|---|---|
| 1 to 2 years | $80,591 |
| 3 to 5 years | $89,328 |
| 6 to 9 years | $97,026 |
| More than 10 years | $100,482 |
How old is the average financial analyst?
The average senior finance analyst age is 39 years old.
On average, financial analysts rate the meaningfulness of their work a 2.3/5. The majority of financial analysts struggle to find any sort of meaning in their work, likely resulting in less satisfaction with the career overall.
At the entry-level, you'll usually work between 40 and 50 hours per week. However, that varies based on the group and the time of year. For example, FP&A Analysts might work more like 50-60 hours per week because the role tends to be more strategic and involves more interaction with management.
Anything above a 3.5 is considered good and above a 3.7 is impressive. Keep in mind that your GPA doesn't make up your entire resume. Strong internships or extracurricular activities can make up for a sub-3.5 GPA, but they better be damn good and you shouldn't count on them making up for your GPA.
There is no specific degree required for a career as a financial analyst, but finding a job will probably be easier if you have a bachelor's degree, and most companies require it. Nearly all financial analysts start with an internship or entry-level position.
