Analyst vs Associate

Publication Date :

07 Dec, 2018

Blog Author :

Edited by :

Reviewed by :

Table Of Contents

Difference Between Analyst and Associate

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

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, 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 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, this creates a rift between the two. Since the association is still learning and assigning tasks to the analyst, the nature of the tasks may be intimidating and time-consuming for an experienced analyst.

Difference Between Analyst and Associate

Analyst vs Associate Infographics

Key Roles and Job Description of an Analyst

Investment Banking analyst most of their time analyzing past transactions data, creating presentations, and offering advice to bankers. He also performs other administrative duties like arranging calls and meetings with clients.
Mainly the project analyst works for, and their duties depend on the organization they work for and the projects they are involved in. The analyst typically has to work for extended hours and can end up to 100 hours per week.
Main responsibilities include the assessment of transactions and financial research. Keeping with the trends such as the performance of stocks and bonds and the trend in the markets. An analyst might not be involved in the decision-making process, but they provide all the data and research required to make the decision.
An analyst is expected to know about different databases and be comfortable with Excel, Powerpoint, and other software like Bloomberg, Factset, and Reuters. An analyst is also expected to track companies and generate daily newsletters, keeping to the schedules. At times they may also require writing macros in VBA. Core skills required are research, analyzing, and interpreting data. A good analyst always observes and thinks.

Key Roles and Job Description of an Associate

The role of an Investment Banking Associate is of a Mid-level operations role with exposure and experience in high-end finance. It involves interacting with various senior investment professionals daily. One of the vital responsibilities includes mentoring a team of analysts and reporting to an AVP.
He is also responsible for checking the analyst's work to ensure it is client-ready and serves as a point of contact for clients. The job role is not limited to a sector and a single asset class.
Key tasks include creating and building financial models in excel and valuations. Conducting financial analysis is also an important part of the job. Creating research and equity research reports and performing a consequence analysis of the merger.
The analyst program is an integral part of an associate recruiting strategy wherein an analyst is promoted on the associate level after completing three years.

Analyst vs Associate - Comparative Table

Analyst	Associate
Analysts mainly have 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 education	Associates 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 bachelor's 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 MBA	It 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 increases	Associates are usually paid around INR 10,00,000 per year along with a bonus component. This is twice as much 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 models, comparable comps and create IB pitch books	Associates, 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 good	They 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 MBA	They 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 Equity 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 CFA may help in getting deep inside and help you start working as an Associate.