Research Analyst – A Simple Overview For 2021
Introduction
Every organization/company needs a research analyst to know critical insights that can help them get an edge over the competitors. With the rise in new-age technologies, analytics has been boosted to the next step. There is a requirement for skilled research analysts who can use the latest technologies to find relevant information. The various stakeholders in an organization, interact with a research analyst to know about the current market or financial scenario.
Organizations need skilled research analysts who can fill the knowledge gap and help pave the way for growth. Studies and reports have suggested that the demand for research analysts will only increase further in the future. If you aim to build a career as a research analyst, you should be familiar with all its aspects. Read on to know more about jobs for research analysts.
Research analysts are expected to possess a wide range of skills and competencies. Organizations look for research analysts having the perfect blend of required soft and hard skills. A lot is riding on the role of research analysts, besides just preparing forecasting reports. Generally, a bachelor’s degree in economics, statistics, or finance is needed to get an entry-level level job as a research analyst. Read on to know more about what is a research analyst and research analyst job description.
- Who is a Research Analyst?
- Types of Research Analyst
- What Does a Research Analyst Do?
- Skills & Jobs
- Type of Companies that Hire a Research Analyst
1) Who is a Research Analyst?
You should know the research analyst meaning thoroughly before joining the industry. A research analyst researches and analyses data related to the market, finance, accounting, customers, etc., and presents it to their organization. In addition to having excellent financial acumen, a research analyst must also possess strong analytical skills. The reports and insights offered by a research analyst are used for making better business decisions and strategies. A research analyst also helps a business/organization understand customers’ demands, and moulds the business accordingly.
There are various job roles available for a research analyst. The nature and scope of work usually depend on the type of business and market they are involved in. The stakeholders and business owners take the aid of research analysts to understand market trends and forecast reports. They are often involved in making the employees and departments aware of external market conditions and challenges within an organization.
2) Types of Research Analyst
Research analysts are not only limited to the finance industry but they are found in other sectors as well. Who doesn’t want to know about the trends and forecasts about their industry? Data analytics is not a straightforward job that you can do with the help of software. Besides software, you need someone who can derive key insights from the bulk of data that is made available. Various types of research analysts are as follows:
- Market research analyst – Market research analysts help a company increase the market share of its products/services. Market research analysts are generally concerned with customer demographics, market trends, etc. They help determine a potential market where the products/services of their firm will be in huge demand.
- Operations research analyst – Operations research analysts have excellent problem-solving skills and decide the course of action in a firm/organization. They use various analytical and mathematical methods to determine business strategies and help business owners make informed decisions.
- Financial analyst – Financial analysts are concerned with the financial processes involved in an organization/firm. They analyze the current financial performance of the firm and come up with ways to enhance future performance. Financial analysts generally focus on the performance of stocks, bonds, investments, etc.
- Economic research analyst – Economic research analysts are concerned with various economic elements like exchange rates, interest rates, inflation, etc. They evaluate the firm’s performance concerning the economic environment around the business. Economic research analysts are also involved in analyzing taxation terms and employment levels.
- Equity research analyst – Equity research analysts are found in the securities and investment industry. Equity research analysts can work for either a sell-side firm or a buy-side firm. They are involved in compiling reports and projections that aid in acquiring or selling securities. They also analyze the client portfolio and help their superiors make informed decisions using complex research analysis.
3) What Does a Research Analyst Do?
Research analysts perform a wide range of duties as per the need of their organization. The primary role of research analysts is related to forecasting or can be diverse as per their firm and industry. The responsibilities of a research analyst may include some or all of the roles mentioned below:
- Research analysts are involved in analyzing the difference between current and planned behaviour/performance of a business, also known as variance analysis.
- They are involved in identifying the market trends that their company can capitalize on.
- They provide research analysis and forecast reports to business owners and various stakeholders. Business research analysts help their superiors in making better business decisions.
- They are also involved in driving improvements in the business processes via standard or ad-hoc research analysis.
- Research analysts use various analytical software(s) and technologies to organize business data and perform real-time analytics.
- They are involved in preparing presentation reports for leadership terms and communicating the employees’ analytical reports.
- They are also involved in giving their superiors the necessary advice and recommendations to improve business processes and help them make better business decisions.
4) Skills & Jobs
The research analyst qualifications can differ from firm to firm. The primary skills required to become a successful research analyst are as follows:
- Numerical skills
- Attention to detail
- Analytical skills
- Organizational skills
- Critical thinking ability
- Logical reasoning ability
- Communication skills
- Presentation skills
Besides the skills mentioned above, you also need to be fluent in operating various analytical software and data analytics technologies. There are a lot of career opportunities as a research analyst. In the beginning, you may have to do junior research analyst work. The global market research industry in 2020 has increased two-folds since 2008, highlighting the opportunities in this sector. As more and more businesses are going digital, it leads to a lot of business data being generated every minute. Organizations need someone who can derive meaningful information from large chunks of business data. Research analysts can help businesses to steer through market disruptions and challenges via effective market analysis and forecasting.
5) Type of Companies that Hire a Research Analyst
There are various types of companies in multiple industries that hire research analysts. Freshers looking for job opportunities should analyze their competencies and determine the best-suited research analysis job for them. For example, if you are good at investment analysis, aim to become an equity research analyst. Some of the major types of companies that hire research analysts are as follows:
- Traditional & digital banks
- Insurance companies
- Government agencies
- Medical organizations
- Pharmaceutical firms
- Advertising/marketing companies
- Manufacturing outlets
- IT firms
Conclusion
Research analysis can help firms get an edge over their competitors via effective business strategies. It also helps in identifying the opportunities and challenges in advance and moulding their business strategies and decisions accordingly. Successful research analysts possess good analytical skills and are resilient. There is no specific requirement in terms of educational qualification for getting into the research analysis industry. Still, it is advisable to have a better educational background to get more chances of upward mobility. Start building your career as a research analyst by taking the right steps!
It is also important to find the right place to learn and become proficient in all these skills and languages. Jigsaw Academy, recognized as one of the Top 10 Data Science Institutes in India, is the right place for you. Jigsaw Academy offers an Integrated Program In Business Analytics for enthusiasts in this field. The course runs for 10 months and is conducted live online. Learners are offered a joint certificate by the Indian Institute of Management, Indore, and Jigsaw Academy.
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