operations research analyst

In today’s competitive global business world, every organization faces problems that must be solved correctly to stay ahead. Operations research plays an important role in basically all industries, including:

  • scheduling sports games
  • charting logistics routes
  • designing patient treatment plans
  • anything in between

Operations research analysts are finance professionals who utilize advanced statistical techniques to develop smart business solutions. It’s their goal to help their organization operate efficiently and cost-effectively to improve profitability. Most analysts work directly with managers to determine how resources should be allocated and how products should be distributed. Operations research analysts transform complex financial data into a valuable asset businesses can understand and apply.

Salary

According to the Bureau of Labor Statistics, the 86,950 operations research analysts  in the United States  earn a mean annual wage of $82,940, or $39.88 per hour. Operations research analysts who work for the federal government earn significantly more at $109,960. The highest paid are employed in communications equipment manufacturing at an average of $125,390 each year.

Beginning Salary

When just starting out in operations research, analysts can expect to land in the bottom 10th percentile with a yearly salary around $42,810. However, it’s important to note that senior operations research analysts with years of experience can bring home upwards of $132,220 annually.

Key Responsibilities

Operations research analysts have the primary responsibility of using mathematical modeling to examine business problems occurring in the process of:

  • production
  • logistics
  • sales

On a typical workday, analysts can be found:

  • identifying problems
  • collecting data
  • gathering input from employees
  • conducting statistical analysis
  • creating operational simulations

Operations research analysts then must present their findings orally or in reports to outline suggestions for executive management. It’s their duty to advise key management decision makers on the potential consequences of various courses of action. They want to guarantee smart business moves. Some analysts will also develop their organization’s decision support software.

Necessary Skills

Working in operations research will require that you have strong analytical skills to carry out:

  • statistical testing
  • data mining
  • forecasting
  • other analyses

It’s also a must to be good at:

  • calculus
  • linear algebra
  • statistics

Analysts should have the writing skills to craft well-written documents highlighting their recommendations. Operations research analysts must be skilled communicators to interview people and present their findings. Creativity and ingenuity is important since operations problems aren’t always obvious. Operations research analysts must sharpen their problem-solving and critical thinking skills. They use these to develop innovative solutions where the benefits outshine the costs. Analysts should be:

  • organized
  • detail-oriented
  • team players devoted to efficiency

Degree and Education Requirements

Entry-level operations research jobs require that analysts have earned at least a four-year bachelor’s degree from a regionally accredited college or university. Most aspiring operations research analysts will earn an undergraduate major in:

  • finance
  • mathematics
  • statistics
  • or computer science

Studying engineering may also be beneficial in certain manufacturing industries. Make certain your electives are filled with courses related to:

  • calculus
  • statistical analysis
  • database software
  • operations research
  • economics

Advancing into mid- to upper-level positions will likely require operations research analysts to return to graduate school. It will help in promotion to earn a:

Pros and Cons of this Position

Like any job, being an operations research analyst will come with a fair share of rewards and challenges you should prepare for.

On the positive side, operations research jobs offer a high yearly salary with excellent benefits and room for advancement. Analysts could eventually work up to being Director of Operations later on. Operations research analysts work in a comfortable office environment, often in teams with other analysts. It’s the perfect job for detail-oriented finance professionals who love digging into complex number problems. Job growth is expected to stay strong in the coming decade.

However, getting into operations research requires extensive skills and experience. Working long hours beyond the traditional 40-hour week is commonplace. Operations research analysts must handle above average stress since their recommendations greatly affect the organization’s future decisions and livelihood.

Getting Started

While earning your bachelor’s or master’s degree, start filling your resume with relevant work experience in operations research. Internships, whether paid or unpaid, will provide valuable experience in learning how businesses operate. Newly hired operations research analysts often will be paired with more experienced analysts to develop their skill sets. Go the extra step to receive training with:

  • Microsoft Visual Basic
  • SQ
  • C++

Starting operations research analysts should pursue membership in the Institute for Operations Research and the Management Sciences (INFORMS) for networking. You could then work towards becoming a Certified Analytics Professional (CAP) to stand out from the crowd. Being a CAP will require renewing certification every three years, but will provide credibility.

Job Outlook

Our global economy continues to recover, so it’s likely that companies will continue to seek greater efficiency through operations research. More organizations are expected to hire operations research analysts to turn data from today’s advanced computer software into valuable business insights that executives can use. The Bureau of Labor Statistics reports that the employment of operations research analysts will grow rapidly, opening thousands of jobs nationwide. Growth will be particularly noticeable in the Armed Forces and other government agencies. Operations research analysts will also find favorable prospects in:

  • financial institutions
  • insurance carriers
  • computer systems design firms
  • manufacturing companies
  • healthcare delivery systems
  • private corporations

Having a master’s degree and operations research experience will broaden opportunities.

Operations research first came about during World War II by military planners. It now maintains a presence in virtually all economic sectors. According to the U.S. News and World Report, operations research analysts have the fourth best business job in America. Their expertise in mathematical modeling is in high demand to help managers make key decisions and formulating wise policies. Working in operations research could be ideal for math fans who love solving real-world business problems with numbers. If you decide to become an operations research analyst, you’ll have the unique opportunity to ensure organizational processes run smoothly and efficiently.

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