Have you ever pondered the reason behind an organization’s financial success? Big tech companies, businesses, or other organizations hire highly expert financial analysts to deal with their financial challenges. A financial analyst, also known as a research analyst or security analyst is responsible for guiding people, and business minds to make profitable decisions to expand money or business.
|Monthly Salary Range:
|R 19500 – R 62200
|Average Monthly Salary:
|A professional who provides his services to assess businesses or individuals to manage financial conditions is called a financial analyst.
|An individual should have a Diploma, Bachelor’s, or master’s degree in finance, economics, business administration, or commerce.
If you are about to pursue a career and looking for a suitable profession, you should apply for a financial analyst position in an organization. It is a respectable position and the professional earns thousands of rands monthly. Come with me to see the details related to the financial analyst, his responsibilities, monthly income, and the position’s salary structure.
Financial Analyst Salary
South Africa has become a market hub of the continent of Africa, as the country gives opportunities to foreigners to come to our region for expanding businesses. It helps our country’s economy but also creates a vacuum as there are hundreds of industries and thousands of companies, but the number of experts, especially in the finance discipline, is lacking. The scope of financial analysis professionals has increased and as a result, companies are hiring hundreds of research analysts daily.
The salary of a financial analyst is based on a list of factors; however, the entry-level salary is about R19,500. The salary increases with time and after years of service, an individual gets R62,200 monthly. According to a rough estimate, the average salary of an employee is R39,900 and the median pay is R37,200.
When it comes to salary, some criticize companies that they are failing to provide adequate compensation that aligns with the hard work of employees. Critics neglect the factor of extras a financial analyst gets from the company. There is a list of the allowances, bonuses, and facilities employees get in both public and private organizations.
For example, a financial analyst receives a bonus for his performance if he accomplishes a task before a deadline. He also gets a bonus when the company achieves a goal. Additionally, employees enjoy free transportation, accommodation, house rent if accommodation is unavailable, and yearly salary increments.
The salary structure of a financial analyst is not as complex as that of a public institute. Financial analysts are hired by private organizations and businesses, and sometimes people get their services in case of a financial crisis. There are very few government institutes hiring financial analysts such as public banks, industrial development corporations, or public investment corporations.
|Years of Experience
|Monthly Salary in Rands
|0 – 2 Years
|2 – 5 Years
|5 – 10 Years
|10 – 15 Years
|15 – 20 Years
Factors That Affect The Salary
There is a list of factors that can affect the amount you are earning in which experience is the most important one. As you can see in the table people from 0 to 2 years are earning R23,200 while the 2 to 5 years of service employees get R29,800, almost 29% more than juniors. The difference between 5 to 10 years of service and 10 to 15 years of service employees pay is 38%.
The table states that there is a huge difference between the salary of an entry-level financial analyst, and 20 years of service employee as he earns nearly R58,200 monthly. The salary structure may vary from company to company but all of them pay similar amounts.
Education is another factor that can affect the amount you are earning monthly. A diploma holder can get a financial analyst job or one can apply after completing bachelors. There are also master’s and PhD candidates applying for financial analyst positions.
|Monthly Salary in Rands
|Certificate or Diploma
In this table, you can see that a diploma holder earns nearly R33,200 and a bachelor’s degree holder gets R44,700. If you calculate the difference, diploma holders earn 15% less than a bachelor’s degree holder analyst. A financial analyst with a master’s degree has the highest monthly income, earning 26% more than a bachelor’s degree holder.
Gender & Location
South Africa is still under the influence of gender discrimination values; therefore, a specific gender earns less than another one. According to a report, male financial analysts get 8% more than female professionals. In some companies, the amount may vary, but males receive higher pay compared to their female counterparts.
Lastly, the city in which you work may affect the amount you are earning. Records claim that people in Cape Town and Johannesburg take R42,000 to R44,000 while financial analysts working in backward areas receive R35,000 to R40,000. The numbers may vary based on the company or organization in which you work.
Responsibilities of Financial Analyst
A financial analyst is responsible for gathering all the information related to a specific issue. For example, if your client has a problem managing the monthly budget of the business, you should note down all the essential, sub-essential, and non-essential daily, weekly, and monthly expenses. You should also note down the overall budget and profit made in the last few months.
A financial analyst cannot provide expert advice without analyzing the data. Some professionals use tools to analyze the data, while others try to analyze based on the current problems. In data analysis, an expert sees all the previous reports related to profitability and solvency.
If a financial analyst is dealing with several issues, he conducts proper research to understand the gravity of the challenges. He analyzes the performance of competitor companies, builds solutions based on previous research, and uses tools to forecast the performance of the company in the future.
Report & Collaboration
Lastly, he writes a report addressing all the issues, the risk factors, and the solution to current financial challenges. Some financial analysts also provide a plan to deal with financial issues while others build a team to deal with problems. A financial analyst collaborates with the relevant authorities to face financial challenges to enhance the company’s profit.
What does a financial analyst do in South Africa?
A financial analyst is responsible for analyzing business challenges and providing insightful solutions to all these issues.
How long does it take to become a financial analyst in South Africa?
It depends upon the program you are studying such as a diploma, 4-year honours degree, or 2.5 years masters. The average duration required to become a financial analyst is 3 years.
What skills are needed for a financial analyst?
A financial analyst should have accounting, Excel, finance analysis, communication, and leadership skills.
Is financial analyst in demand in South Africa?
Yes, financial analysis experts are in demand due to the new business trends and challenges.
The position of financial analysis expert plays a cornerstone role in a company. Without expert insights, a company cannot manage budget, and expenses or deal with financial losses, so we cannot deny the importance of a financial analyst position in an organization. We should appreciate them for their services and acknowledge their efforts; I hope this information will help you in the future; thank you.
Article Modified on October 28, 2023. The data in this article is written and collected by multiple authors. Learn how we research on About Us.