Employment of management analysts is expected to grow much faster than average. Despite projected rapid employment growth, keen competition is expected for jobs as management analysts because of the independent and challenging nature of the work and the high earnings potential that make this occupation attractive to many.
Employment change.
Employment of management analysts is expected to grow 22 percent over the 2006-16 decade, much faster than the average for all occupations, as industry and government increasingly rely on outside expertise to improve the performance of their organizations. Job growth is projected in very large consulting firms with international expertise and in smaller consulting firms that specialize in specific areas, such as biotechnology, health care, information technology, human resources, engineering, and marketing. Growth in the number of individual practitioners may be hindered by increasing use of consulting teams that are often more versatile.
Job growth for management analysts has been driven by a number of changes in the business environment that have forced firms to take a closer look at their operations. These changes include regulatory changes, developments in information technology, and the growth of electronic commerce. Firms hire consultants to help them adapt to new business regulations, such as the Sarbanes-Oxley Act, which tightened financial reporting rules. Traditional companies hire analysts to help design intranets or company Web sites or to establish online businesses. New Internet startup companies hire analysts not only to design Web sites but also to advise them in traditional business practices, such as pricing strategies, marketing, and inventory and human resource management.
To offer clients better quality and a wider variety of services, consulting firms are partnering with traditional computer software and technology firms. Also, many computer firms are developing consulting practices of their own to take advantage of this expanding market. Although information technology consulting should remain one of the fastest growing consulting areas, employment in the computer services industry can be volatile so the most successful management analysts may also consult in other business areas.
The growth of international business also has contributed to an increase in demand for management analysts. As U.S. firms expand their business abroad, many will hire management analysts to help them form the right strategy for entering the market; to advise them on legal matters pertaining to specific countries; or to help them with organizational, administrative, and other issues, especially if the U.S. company is involved in a partnership or merger with a local firm. These trends provide management analysts with more opportunities to travel or work abroad but also require them to have a more comprehensive knowledge of international business and foreign cultures and languages. Just as globalization creates new opportunities for management analysts, it also allows U.S. firms to hire management analysts in other countries; however, because international work is expected to increase the total amount of work, this development is not expected to adversely affect employment in this occupation.
Furthermore, as international and domestic markets have become more competitive, firms have needed to use resources more efficiently. Management analysts increasingly are sought to help reduce costs, streamline operations, and develop marketing strategies. As this process continues and businesses downsize, even more opportunities will be created for analysts to perform duties that previously were handled internally. Finally, more management analysts also will be needed in the public sector, as Federal, State, and local government agencies seek ways to become more efficient.
Job prospects. Despite rapid employment growth, keen competition is expected. The pool of applicants from which employers can draw is quite large since analysts can have very diverse educational backgrounds and work experience. Furthermore, the independent and challenging nature of the work, combined with high earnings potential, makes this occupation attractive to many. Job opportunities are expected to be best for those with a graduate degree, specialized expertise, and a talent for salesmanship and public relations.
Economic downturns also can have adverse effects on employment for some management consultants. In these times, businesses look to cut costs, and consultants may be considered an excess expense. On the other hand, some consultants might experience an increase in work during recessions because they advise businesses on how to cut costs and remain profitable.
Management analysts held about 678,000 jobs in 2006. About 27 percent of these workers, over three times the average for all occupations, were self-employed. Management analysts are found throughout the country, but employment is concentrated in large metropolitan areas. Management analysts work in a range of industries, including management, scientific, and technical consulting firms; computer systems design and related services firms; and Federal, State, and local governments.
Job Zone 4 - Preparation needed
Overall Experience
A minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations. For example, an accountant needs four years of college and several years of accounting work to be considered qualified.
Education
Most of these occupations require a four-year bachelor's degree, but some do not.
Job Training
Employees in these occupations usually need several years of work-related experience, on-the-job training, and/or vocational training.
Examples
Accountants, chefs and head cooks, computer programmers, historians, and police detectives.
These occupations often involve coordinating, supervising, managing, and/or training others.
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Information about career opportunities in management consulting is available from:
- Association of Management Consulting Firms, 380 Lexington Ave., Suite 1700, New York, NY 10168. Internet: http://www.amcf.org
Information about the Certified Management Consultant designation can be obtained from:
- Institute of Management Consultants USA, Inc., 2025 M St. NW., Suite 800, Washington, DC 20036. Internet: http://www.imcusa.org
Information on obtaining a management analyst position with the Federal Government is available from the Office of Personnel Management (OPM) through USAJOBS, the Federal Government's official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not toll free, and charges may result. For advice on how to find and apply for Federal jobs, see the Occupational Outlook Quarterly article "How to get a job in the Federal Government," online at http://www.bls.gov/opub/ooq/2004/summer/art01.pdf.
Sources: O*Net data version 12.0
Occupational Outlook Handbook
Department of Labor
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