Analyst vs Associate

Difference Between Analyst and Associate

Analyst and Associate are job titles used mainly in consulting companies and investment banking firms and are the first two tiers of the organization followed by Associate Vice President (AVP), Vice President (VP), Senior Vice President and Managing Director. Both these job positions may sound similar but the education, job requirement, and salary structure are different.

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  • Both job positions can be entry-level but the position of an associate is considered to be one position higher than the analyst. These designations are used in all major investment banks like JPMorgan, Citi, HSBC, Credit Suisse, and KPO’s which help these investment banks follow a similar designation hierarchy.
  • Also note, that these terms may also be used interchangeably by different organizations. For example, the Boston Consulting group entry-level employees are called associates, and the second tier employees are called consultants. This terminology may be confusing to understand. however, it is more important to understand the job requirement rather than the terminology.
  • There are often clashes between employees working together with these two roles. An analyst has to perform tasks assigned to him by the associate. If the associate is entry-level in the bank and the analyst is experienced then this creates a rift between the two since the associate is still learning and assigning tasks to the analyst, the nature of the tasks may be intimidating and time-consuming for an experienced analyst.

Analyst vs Associate Infographics

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Key Roles and Job Description of an Analyst

Key Roles and Job Description of an Associate

Analyst vs Associate – Comparative Table

Analyst mainly has an entry-level post at the firm and are responsible for a small part of a big project. In some firms like McKinsey, analysts are not considered as permanent employees. After they spend three years in the firm Analyst are either promoted to an associate position or they leave the job to pursue higher educationAssociates are considered as permanent employees and are responsible for managing the team of analysts and are the leaders of the projects.
He requires a minimum of a bachelors degree to get in. Sometimes, even engineering degrees are accepted. There may be cases that an analyst is promoted to an associate position without an MBAIt is necessary for an Associate to have an MBA, mainly in finance. Sometimes, other degrees which are related to their experience and role are also accepted
Entry-level analysts usually receive INR 4,00,000 to INR 5,00,000.As the experience increases the hike in the salary also increasesAssociates are usually paid around INR 10,00,000 per year along with a bonus component. This is twice as what an analyst receives. This highlights the stark contrast between them.
The analyst is expected to execute all the tasks like making presentations, creating financial modelsFinancial ModelsFinancial modeling refers to the use of excel-based models to reflect a company's projected financial performance. Such models represent the financial situation by taking into account risks and future assumptions, which are critical for making significant decisions in the future, such as raising capital or valuing a business, and interpreting their more, comparable comps and create IB pitch booksCreate IB Pitch BooksPitch Book is an information layout or presentation used by investment banks, business brokers, corporate firms, and others to provide potential investors with the firm's main attributes and valuation analysis, which helps them decide whether or not to invest in the client's business. A pitch book is also known as Confidential Information Memorandum, which is used by the firm's sales department to help them sell products and services to a moreAssociates, on the other hand, are involved in client interaction, understanding their requirements and help analysts execute their tasks
They perform tasks given by the Associate and are also responsible for administrative tasks. Mainly responsible for doing all the grunt work and making his associate look goodThey run a project and assign tasks to the analyst. He plays a managerial role and provides an opportunity to handle a broad range of responsibilities and management tasks
They are promoted to the Associate level after three years or after getting an MBAThey are promoted to the position of an Associate Vice President after completing three or four years in a particular organization. It may also depend on the policies of the organization

If one is interested in Investment Banking or Private EquityInvestment Banking Or Private EquityInvestment banking is the financial mechanism through which a person receives financial advisory services from the investment banker regarding the share capital. In contrast, private equity funds are investment funds that pool funds from different investors with high net worth to acquire stakes in different more which has a similar hierarchy, it is very helpful to start your career as an Analyst immediately after graduation and get hands-on experience after which an MBA or CFAMBA Or CFACFA focusses on imparting skills associated with Investment Management including Investment Analysis, Portfolio Strategy, Asset Allocation, and Corporate Finance. MBA focusses on overall Management Skills like Marketing, Operations, Finance, Human Resource Accounting, more may help in getting deep insides and help you start working as an Associate.

This has been a guide to Analyst vs Associate. Here we discuss the top difference between Analyst and Associate along with infographics and comparison table. You may also have a look at the following articles –

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