Statisticians typically need a master's degree in statistics, mathematics, or survey methodology. However, a bachelor's degree is sufficient for some entry-level jobs. Research and academic jobs generally require a Ph.D.
Education
Many colleges and universities offer undergraduate and graduate degree programs in statistics. A bachelor’s degree in statistics is not needed to enter a graduate program. However, significant coursework in statistics or mathematics is essential. Required subjects for a bachelor’s degree in statistics include differential and integral calculus, statistical methods, mathematical modeling, and probability theory.
Many colleges and universities advise or require students to take courses in a related field, such as computer science, engineering, physics, or mathematics. Candidates with experience in a related discipline are particularly desirable to many employers.
For example, training in engineering or physical science is useful for statisticians working in manufacturing on quality or productivity improvement. A background in biology, chemistry, or health sciences is useful for work testing pharmaceutical or agricultural products.
Because statisticians use and write computer programs for many calculations, a strong background in computer science is also helpful.
Advancement
Opportunities for promotion are greater for people with master's degrees or Ph.D.s. Statisticians with a master's degree or a Ph.D. usually can design their own work. They may develop new statistical methods or become independent consultants.
Important Qualities
Critical-thinking skills. Statisticians use logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
Math skills. Statisticians use statistics, calculus and linear algebra to develop their models and analyses.
Problem-solving skills. Statisticians must develop techniques to overcome problems in data collection and analysis, such as high nonresponse rates, so that they can draw meaningful conclusions.
Speaking skills. Because statisticians often work in teams, they must be able to present statistical information and ideas so that others will understand.
Writing skills. Good writing skills are important for statisticians because they write reports explaining technical matters to persons without their level of statistical expertise.
Thursday, February 20, 2014
Wednesday, February 19, 2014
Career Exploration Series: How to Become an Electrical Engineer
Electrical and electronics engineers must have a bachelor’s degree. Employers also value practical experience, so participation in cooperative engineering programs, in which students earn academic credit for structured work experience, is valuable as well. Having a Professional Engineer (PE) license may improve an engineer’s chances of finding employment.
Education
High school students interested in studying electrical or electronics engineering benefit from taking courses in physics and mathematics, including algebra, trigonometry, and calculus. Courses in drafting are also helpful, because electrical and electronics engineers are often required to prepare technical drawings.
Entry-level jobs in electrical or electronics engineering generally require a bachelor's degree in electrical engineering, electronics engineering, or electrical engineering technology. Programs include classroom, laboratory, and field studies. Courses include digital systems design, differential equations, and electrical circuit theory. Programs in electrical engineering should be accredited by ABET.
Some colleges and universities offer cooperative programs in which students gain practical experience while completing their education. Cooperative programs combine classroom study with practical work.
At some universities, students can enroll in a 5-year program that leads to both a bachelor’s degree and a master’s degree. A graduate degree allows an engineer to work as an instructor at some universities, or in research and development.
Important Qualities
Concentration. Electrical and electronics engineers design and develop complex electrical systems and electronic components and products. They must be able to keep track of multiple design elements and technical characteristics when performing these tasks.
Initiative. Electrical and electronics engineers must be able to apply their academic knowledge to new tasks in every project they undertake. In addition, they must engage in continuing education to keep up with changes in technology.
Interpersonal skills. Electrical and electronics engineers must be able to work with others during the manufacturing process to ensure that their plans are implemented correctly. This collaboration includes monitoring technicians and devising remedies to problems as they arise.
Math skills. Electrical and electronics engineers must be able to use the principles of calculus and other advanced topics in math in order to analyze, design, and troubleshoot equipment.
Speaking skills. Electrical and electronics engineers work closely with other engineers and technicians. They must be able to explain their designs and reasoning clearly and to relay instructions during product development and production. They may also need to explain complex issues to customers who have little or no technical expertise.
Licenses, Certifications, and Registrations
Licensure for electrical and electronics engineers is not as common as it is for other engineering occupations; however, it is encouraged for those working in companies that have contracts with federal, state, and local government. Engineers who become licensed are designated Professional Engineers (PEs). Licensure generally requires the following:
The initial Fundamentals of Engineering (FE) exam can be taken right after graduation from a college or university. Engineers who pass this exam commonly are called engineers in training (EITs) or engineer interns (EIs). After getting work experience, EITs can take the second exam, called the Principles and Practice of Engineering exam.
Several states require engineers to take continuing education courses to keep their license. Most states recognize licensure from other states if the licensing state’s requirements meet or exceed their own licensure requirements.
Education
High school students interested in studying electrical or electronics engineering benefit from taking courses in physics and mathematics, including algebra, trigonometry, and calculus. Courses in drafting are also helpful, because electrical and electronics engineers are often required to prepare technical drawings.
Entry-level jobs in electrical or electronics engineering generally require a bachelor's degree in electrical engineering, electronics engineering, or electrical engineering technology. Programs include classroom, laboratory, and field studies. Courses include digital systems design, differential equations, and electrical circuit theory. Programs in electrical engineering should be accredited by ABET.
Some colleges and universities offer cooperative programs in which students gain practical experience while completing their education. Cooperative programs combine classroom study with practical work.
At some universities, students can enroll in a 5-year program that leads to both a bachelor’s degree and a master’s degree. A graduate degree allows an engineer to work as an instructor at some universities, or in research and development.
Important Qualities
Concentration. Electrical and electronics engineers design and develop complex electrical systems and electronic components and products. They must be able to keep track of multiple design elements and technical characteristics when performing these tasks.
Initiative. Electrical and electronics engineers must be able to apply their academic knowledge to new tasks in every project they undertake. In addition, they must engage in continuing education to keep up with changes in technology.
Interpersonal skills. Electrical and electronics engineers must be able to work with others during the manufacturing process to ensure that their plans are implemented correctly. This collaboration includes monitoring technicians and devising remedies to problems as they arise.
Math skills. Electrical and electronics engineers must be able to use the principles of calculus and other advanced topics in math in order to analyze, design, and troubleshoot equipment.
Speaking skills. Electrical and electronics engineers work closely with other engineers and technicians. They must be able to explain their designs and reasoning clearly and to relay instructions during product development and production. They may also need to explain complex issues to customers who have little or no technical expertise.
Licenses, Certifications, and Registrations
Licensure for electrical and electronics engineers is not as common as it is for other engineering occupations; however, it is encouraged for those working in companies that have contracts with federal, state, and local government. Engineers who become licensed are designated Professional Engineers (PEs). Licensure generally requires the following:
- A degree from an ABET-accredited engineering program
- A passing score on the Fundamentals of Engineering (FE) exam
- Relevant work experience
- A passing score on the Professional Engineering (PE) exam
The initial Fundamentals of Engineering (FE) exam can be taken right after graduation from a college or university. Engineers who pass this exam commonly are called engineers in training (EITs) or engineer interns (EIs). After getting work experience, EITs can take the second exam, called the Principles and Practice of Engineering exam.
Several states require engineers to take continuing education courses to keep their license. Most states recognize licensure from other states if the licensing state’s requirements meet or exceed their own licensure requirements.
Tuesday, February 18, 2014
Career Exploration Series: How to Become a Cost Estimator
What Cost Estimators Do
Cost estimators collect and analyze data in order to estimate the time, money, materials, and labor required to manufacture a product, construct a building, or provide a service. They generally specialize in a particular industry or type of product.
Work Environment
Although cost estimators work mostly in offices, they often visit construction sites and factory floors. Some must work overtime to meet deadlines.
How to Become a Cost Estimator
A bachelor’s degree is generally required for someone to become a cost estimator. However, a few highly experienced construction workers may qualify without a bachelor’s degree.
Education
Increasingly, employers prefer candidates who have a bachelor’s degree. A strong background in mathematics is essential.
Construction cost estimators generally need a bachelor’s degree in an industry-related field, such as construction management, building science, or engineering. Those interested in estimating manufacturing costs typically need a bachelor’s degree in engineering, physical sciences, mathematics, or statistics. Some employers accept candidates with backgrounds in business-related disciplines, such as accounting, finance, and business.
Training
Newly hired cost estimators may receive some on-the-job training based on their prior experience. Training often includes learning a company’s cost-estimating software and techniques.
Work Experience in a Related Occupation
Increasingly, employers prefer that cost estimators—particularly those without a bachelor’s degree—have previous work experience in the construction industry. For example, experienced electricians and plumbers can become construction cost estimators if they have the necessary construction knowledge and math skills.
Candidates interested in becoming cost estimators also can gain experience through internships and cooperative education programs.
Licenses, Certifications, and Registrations
Voluntary certification can show competence and experience in the field. In some instances, employers may require professional certification before hiring. The American Society of Professional Estimators, the Association for the Advancement of Cost Estimating International (also known as AACE International), and the International Cost Estimating and Analysis Association each offer a variety of certifications.
To become certified, estimators generally must have at least 2 years of estimating experience and must pass a written exam.
Important Qualities
Analytical skills. Accurately evaluating detailed specifications is crucial to a cost estimator’s success. For example, a cost estimator must determine how to minimize costs without sacrificing quality.
Detail oriented. Cost estimators must pay attention to small details because such details may have a large impact on a product’s overall cost.
Technical skills. Detailed knowledge of industry processes, materials, and costs are vital to estimators. In addition, they should be able to use specialized computer programs to calculate equations and handle large databases.
Time-management skills. Because cost estimators often work on fixed deadlines, they must plan their work in advance and work efficiently and accurately.
Writing skills. Cost estimators must be able to write detailed reports. Often, these reports determine whether or not contracts are awarded or products are manufactured.
Pay
The median annual wage for cost estimators was $58,860 in May 2012.
Job Outlook
Employment of cost estimators is projected to grow 26 percent from 2012 to 2022, much faster than the average for all occupations. Overall job opportunities should be good as cost-conscious firms continue to rely on cost estimates.
Cost estimators collect and analyze data in order to estimate the time, money, materials, and labor required to manufacture a product, construct a building, or provide a service. They generally specialize in a particular industry or type of product.
Work Environment
Although cost estimators work mostly in offices, they often visit construction sites and factory floors. Some must work overtime to meet deadlines.
How to Become a Cost Estimator
A bachelor’s degree is generally required for someone to become a cost estimator. However, a few highly experienced construction workers may qualify without a bachelor’s degree.
Education
Increasingly, employers prefer candidates who have a bachelor’s degree. A strong background in mathematics is essential.
Construction cost estimators generally need a bachelor’s degree in an industry-related field, such as construction management, building science, or engineering. Those interested in estimating manufacturing costs typically need a bachelor’s degree in engineering, physical sciences, mathematics, or statistics. Some employers accept candidates with backgrounds in business-related disciplines, such as accounting, finance, and business.
Training
Newly hired cost estimators may receive some on-the-job training based on their prior experience. Training often includes learning a company’s cost-estimating software and techniques.
Work Experience in a Related Occupation
Increasingly, employers prefer that cost estimators—particularly those without a bachelor’s degree—have previous work experience in the construction industry. For example, experienced electricians and plumbers can become construction cost estimators if they have the necessary construction knowledge and math skills.
Candidates interested in becoming cost estimators also can gain experience through internships and cooperative education programs.
Licenses, Certifications, and Registrations
Voluntary certification can show competence and experience in the field. In some instances, employers may require professional certification before hiring. The American Society of Professional Estimators, the Association for the Advancement of Cost Estimating International (also known as AACE International), and the International Cost Estimating and Analysis Association each offer a variety of certifications.
To become certified, estimators generally must have at least 2 years of estimating experience and must pass a written exam.
Important Qualities
Analytical skills. Accurately evaluating detailed specifications is crucial to a cost estimator’s success. For example, a cost estimator must determine how to minimize costs without sacrificing quality.
Detail oriented. Cost estimators must pay attention to small details because such details may have a large impact on a product’s overall cost.
Technical skills. Detailed knowledge of industry processes, materials, and costs are vital to estimators. In addition, they should be able to use specialized computer programs to calculate equations and handle large databases.
Time-management skills. Because cost estimators often work on fixed deadlines, they must plan their work in advance and work efficiently and accurately.
Writing skills. Cost estimators must be able to write detailed reports. Often, these reports determine whether or not contracts are awarded or products are manufactured.
Pay
The median annual wage for cost estimators was $58,860 in May 2012.
Job Outlook
Employment of cost estimators is projected to grow 26 percent from 2012 to 2022, much faster than the average for all occupations. Overall job opportunities should be good as cost-conscious firms continue to rely on cost estimates.
Monday, February 17, 2014
Career Exploration Series: How to Become an Actuary
What Actuaries Do
Actuaries analyze the financial costs of risk and uncertainty. They use mathematics, statistics, and financial theory to assess the risk that an event will occur and they help businesses and clients develop policies that minimize the cost of that risk. Actuaries’ work is essential to the insurance industry.
Work Environment
Most actuaries work full time in an office setting. Actuaries who work as consultants may frequently travel to meet with clients.
How to Become an Actuary
Actuaries need a bachelor’s degree, typically in mathematics, actuarial science, statistics, or other analytical field. Students must complete coursework in economics, applied statistics, and corporate finance, and pass a series of exams to become certified professionals.
Education
Actuaries must have a strong background in mathematics, statistics, and business. Typically, an actuary has an undergraduate degree in mathematics, actuarial science, statistics, or other analytical field. Coursework in calculus and business, such as accounting and management, is essential for students as well.
To become certified professionals, students must complete coursework in economics, applied statistics, and corporate finance.
Students should also take classes outside of mathematics and business to prepare them for a career as an actuary. Coursework in computer science, especially programming languages, and the ability to use and develop spreadsheets, databases, and statistical analysis tools, are valuable. Classes in writing and public speaking will improve students’ ability to communicate in the business world.
Many students gain experience through internships. In some cases, employers offer their interns permanent jobs after they graduate.
Many employers expect students to have passed at least one of the initial actuary exams needed for professional certification (as described in the certification section) before graduation.
Certifications
Two professional societies—the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA)—sponsor programs leading to full professional status. The CAS and SOA offer two levels of certification: associate and fellowship.
The CAS certifies actuaries who work in the property and casualty field, which includes automobile, homeowners’, medical malpractice, and workers’ compensation insurance.
The SOA certifies actuaries who work in life insurance, health insurance, retirement benefits, investments, and finance. Most actuaries in the United States are certified by the SOA.
The main requirement for associate certification in each society is the successful completion of exams. The SOA requires that candidates pass five exams for associate (ASA) certification. The CAS requires that candidates pass seven exams for associate (ACAS) certification. In addition, both CAS and SOA require that candidates take seminars on professionalism. Both societies have mandatory e-learning courses for candidates.
It typically takes 4 to 6 years for an actuary to get an ACAS or an ASA certification because each exam requires hundreds of hours of study and months of preparation.
After becoming associates, actuaries typically take another 2 to 3 years to earn fellowship status.
The SOA offers fellowship certification in five separate tracks: life and annuities, group and health benefits, retirement benefits, investments, and finance/enterprise risk management. Unlike the SOA, the CAS does not offer specialized study tracks for fellowship certification.
Both the CAS and the SOA have continuing education requirements. Most actuaries meet this requirement by attending training seminars that are sponsored by their employers or the societies.
Training
Most entry-level actuaries start out as trainees. They are typically on teams with more experienced actuaries who serve as mentors. At first, they perform basic tasks such as compiling data, but as they gain more experience, they may conduct research and write reports. Beginning actuaries may spend time working in other departments, such as marketing, underwriting, and product development, to learn all aspects of the company’s work and how actuarial work applies to them.
Most employers support their actuaries throughout the certification process. For example, employers typically pay the cost of exams and study materials. Many firms provide paid time to study and encourage their employees to set up study groups. Employees usually receive raises or bonuses for each exam that they pass.
Licenses
Pension actuaries must be enrolled by the U.S. Department of Labor and U.S. Department of the Treasury’s Joint Board for the Enrollment of Actuaries. Applicants must meet certain experience requirements and pass two exams administered through the SOA to qualify for enrollment.
Advancement
Advancement depends largely on job performance and the number of actuarial exams passed. For example, actuaries who achieve fellowship status often supervise the work of other actuaries and provide advice to senior management. Actuaries with a broad knowledge of risk management and how it applies to business can rise to executive positions in their companies, such as chief risk officer or chief financial officer.
Important Qualities
Analytical skills. Actuaries use analytical skills to identify patterns and trends in complex sets of data to determine the factors that have an effect on certain types of events.
Communication skills. Actuaries must be able to explain complex technical matters to those without an actuarial background. They must also communicate clearly through the reports and memos that describe their work and recommendations.
Computer skills. Actuaries must know programming languages and be able to use and develop spreadsheets, databases, and statistical analysis tools.
Interpersonal skills. Actuaries serve as leaders and members of teams, so they must be able to listen to other people’s opinions and suggestions before reaching a conclusion.
Math skills. Actuaries quantify risk by using the principles of calculus, statistics, and probability.
Problem-solving skills. Actuaries identify risks and develop ways for businesses to manage those risks.
Pay
The median annual wage for actuaries was $93,680 in May 2012.
Job Outlook
Employment of actuaries is projected to grow 26 percent from 2012 to 2022, much faster than the average for all occupations. Actuaries will be needed to develop, price, and evaluate a variety of insurance products and calculate the costs of new risks.
Actuaries analyze the financial costs of risk and uncertainty. They use mathematics, statistics, and financial theory to assess the risk that an event will occur and they help businesses and clients develop policies that minimize the cost of that risk. Actuaries’ work is essential to the insurance industry.
Work Environment
Most actuaries work full time in an office setting. Actuaries who work as consultants may frequently travel to meet with clients.
How to Become an Actuary
Actuaries need a bachelor’s degree, typically in mathematics, actuarial science, statistics, or other analytical field. Students must complete coursework in economics, applied statistics, and corporate finance, and pass a series of exams to become certified professionals.
Education
Actuaries must have a strong background in mathematics, statistics, and business. Typically, an actuary has an undergraduate degree in mathematics, actuarial science, statistics, or other analytical field. Coursework in calculus and business, such as accounting and management, is essential for students as well.
To become certified professionals, students must complete coursework in economics, applied statistics, and corporate finance.
Students should also take classes outside of mathematics and business to prepare them for a career as an actuary. Coursework in computer science, especially programming languages, and the ability to use and develop spreadsheets, databases, and statistical analysis tools, are valuable. Classes in writing and public speaking will improve students’ ability to communicate in the business world.
Many students gain experience through internships. In some cases, employers offer their interns permanent jobs after they graduate.
Many employers expect students to have passed at least one of the initial actuary exams needed for professional certification (as described in the certification section) before graduation.
Certifications
Two professional societies—the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA)—sponsor programs leading to full professional status. The CAS and SOA offer two levels of certification: associate and fellowship.
The CAS certifies actuaries who work in the property and casualty field, which includes automobile, homeowners’, medical malpractice, and workers’ compensation insurance.
The SOA certifies actuaries who work in life insurance, health insurance, retirement benefits, investments, and finance. Most actuaries in the United States are certified by the SOA.
The main requirement for associate certification in each society is the successful completion of exams. The SOA requires that candidates pass five exams for associate (ASA) certification. The CAS requires that candidates pass seven exams for associate (ACAS) certification. In addition, both CAS and SOA require that candidates take seminars on professionalism. Both societies have mandatory e-learning courses for candidates.
It typically takes 4 to 6 years for an actuary to get an ACAS or an ASA certification because each exam requires hundreds of hours of study and months of preparation.
After becoming associates, actuaries typically take another 2 to 3 years to earn fellowship status.
The SOA offers fellowship certification in five separate tracks: life and annuities, group and health benefits, retirement benefits, investments, and finance/enterprise risk management. Unlike the SOA, the CAS does not offer specialized study tracks for fellowship certification.
Both the CAS and the SOA have continuing education requirements. Most actuaries meet this requirement by attending training seminars that are sponsored by their employers or the societies.
Training
Most entry-level actuaries start out as trainees. They are typically on teams with more experienced actuaries who serve as mentors. At first, they perform basic tasks such as compiling data, but as they gain more experience, they may conduct research and write reports. Beginning actuaries may spend time working in other departments, such as marketing, underwriting, and product development, to learn all aspects of the company’s work and how actuarial work applies to them.
Most employers support their actuaries throughout the certification process. For example, employers typically pay the cost of exams and study materials. Many firms provide paid time to study and encourage their employees to set up study groups. Employees usually receive raises or bonuses for each exam that they pass.
Licenses
Pension actuaries must be enrolled by the U.S. Department of Labor and U.S. Department of the Treasury’s Joint Board for the Enrollment of Actuaries. Applicants must meet certain experience requirements and pass two exams administered through the SOA to qualify for enrollment.
Advancement
Advancement depends largely on job performance and the number of actuarial exams passed. For example, actuaries who achieve fellowship status often supervise the work of other actuaries and provide advice to senior management. Actuaries with a broad knowledge of risk management and how it applies to business can rise to executive positions in their companies, such as chief risk officer or chief financial officer.
Important Qualities
Analytical skills. Actuaries use analytical skills to identify patterns and trends in complex sets of data to determine the factors that have an effect on certain types of events.
Communication skills. Actuaries must be able to explain complex technical matters to those without an actuarial background. They must also communicate clearly through the reports and memos that describe their work and recommendations.
Computer skills. Actuaries must know programming languages and be able to use and develop spreadsheets, databases, and statistical analysis tools.
Interpersonal skills. Actuaries serve as leaders and members of teams, so they must be able to listen to other people’s opinions and suggestions before reaching a conclusion.
Math skills. Actuaries quantify risk by using the principles of calculus, statistics, and probability.
Problem-solving skills. Actuaries identify risks and develop ways for businesses to manage those risks.
Pay
The median annual wage for actuaries was $93,680 in May 2012.
Job Outlook
Employment of actuaries is projected to grow 26 percent from 2012 to 2022, much faster than the average for all occupations. Actuaries will be needed to develop, price, and evaluate a variety of insurance products and calculate the costs of new risks.
Friday, February 14, 2014
Career Exploration Series: How to Become a Loan Officer
What Loan Officers Do
Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses.
Work Environment
Most loan officers are employed by commercial banks, credit unions, mortgage companies, and related financial institutions. Most commercial and consumer loan officers work full time, and many mortgage loan officers work very long hours. Except for consumer loan officers, traveling to visit clients is common.
How to Become a Loan Officer
Most loan officers need a bachelor’s degree and receive on-the-job training. Mortgage loan officers must be licensed.
Education
Loan officers typically need a bachelor’s degree, usually in a field such as business or finance. Because commercial loan officers analyze the finances of businesses applying for credit, they need to understand general business accounting, including how to read financial statements.
Some loan officers may be able to enter the occupation without a bachelor’s degree if they have related work experience, such as in sales, customer service, or banking.
Training
Once hired, loan officers usually receive some on-the-job training. This may be a combination of formal, company-sponsored training and informal training during the first few months on the job. Those who use underwriting software often take classes to learn the company’s software programs.
Licenses, Certifications, and Registrations
Mortgage loan officers must have a Mortgage Loan Originator (MLO) license. To become licensed, mortgage loan officers must complete at least 20 hours of coursework, pass an exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements.
Several banking associations and schools offer courses or certifications for loan officers. The American Bankers Association and the Mortgage Bankers Association both offer certification and training programs for loan officers. Although not required, certification shows dedication and expertise and thus may enhance a candidate’s employment opportunities.
Other Experience
Employers may prefer candidates who have work experience in lending, banking, sales, or customer service. For those without a bachelor’s degree, work experience in a related field can be particularly useful.
Important Qualities
Decision-making skills. Decision-making skills are important for loan officers, who must assess an applicant’s financial information and decide whether to award a loan.
Initiative. Loan officers need to have initiative when seeking out clients. They often act as salespeople, promoting their lending institution and contacting firms to determine their loan needs.
Interpersonal skills. Because loan officers work with people, they must be able to guide customers through the application process and answer their questions.
Pay
The median annual wage for loan officers was $59,820 in May 2012. Some loan officers are paid a flat salary; others are paid on commission.
Job Outlook
Employment of loan officers is projected to grow 8 percent from 2012 to 2022, about as fast as the average for all occupations. The need for loan officers fluctuates with the economy, generally increasing in times of economic growth, low interest rates, and population growth—all of which create demand for loans.
Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses.
Work Environment
Most loan officers are employed by commercial banks, credit unions, mortgage companies, and related financial institutions. Most commercial and consumer loan officers work full time, and many mortgage loan officers work very long hours. Except for consumer loan officers, traveling to visit clients is common.
How to Become a Loan Officer
Most loan officers need a bachelor’s degree and receive on-the-job training. Mortgage loan officers must be licensed.
Education
Loan officers typically need a bachelor’s degree, usually in a field such as business or finance. Because commercial loan officers analyze the finances of businesses applying for credit, they need to understand general business accounting, including how to read financial statements.
Some loan officers may be able to enter the occupation without a bachelor’s degree if they have related work experience, such as in sales, customer service, or banking.
Training
Once hired, loan officers usually receive some on-the-job training. This may be a combination of formal, company-sponsored training and informal training during the first few months on the job. Those who use underwriting software often take classes to learn the company’s software programs.
Licenses, Certifications, and Registrations
Mortgage loan officers must have a Mortgage Loan Originator (MLO) license. To become licensed, mortgage loan officers must complete at least 20 hours of coursework, pass an exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements.
Several banking associations and schools offer courses or certifications for loan officers. The American Bankers Association and the Mortgage Bankers Association both offer certification and training programs for loan officers. Although not required, certification shows dedication and expertise and thus may enhance a candidate’s employment opportunities.
Other Experience
Employers may prefer candidates who have work experience in lending, banking, sales, or customer service. For those without a bachelor’s degree, work experience in a related field can be particularly useful.
Important Qualities
Decision-making skills. Decision-making skills are important for loan officers, who must assess an applicant’s financial information and decide whether to award a loan.
Initiative. Loan officers need to have initiative when seeking out clients. They often act as salespeople, promoting their lending institution and contacting firms to determine their loan needs.
Interpersonal skills. Because loan officers work with people, they must be able to guide customers through the application process and answer their questions.
Pay
The median annual wage for loan officers was $59,820 in May 2012. Some loan officers are paid a flat salary; others are paid on commission.
Job Outlook
Employment of loan officers is projected to grow 8 percent from 2012 to 2022, about as fast as the average for all occupations. The need for loan officers fluctuates with the economy, generally increasing in times of economic growth, low interest rates, and population growth—all of which create demand for loans.
Thursday, February 13, 2014
Career Exploration Series: How to Become a Financial Analyst
What Financial Analysts Do
Financial analysts provide guidance to businesses and individuals making investment decisions. They assess the performance of stocks, bonds, and other types of investments.
Work Environment
Financial analysts work in offices. Most work full time, and many work more than 40 hours per week.
How to Become a Financial Analyst
Financial analysts typically must have a bachelor’s degree, but a master’s degree is often required for advanced positions.
Education
Most positions require a bachelor’s degree. A number of fields of study provide appropriate preparation, including accounting, economics, finance, statistics, mathematics, and engineering. For advanced positions, employers often require a master’s in business administration (MBA) or a master’s degree in finance. Knowledge of options pricing, bond valuation, and risk management are important.
Licenses, Certifications, and Registrations
The Financial Industry Regulatory Authority (FINRA) is the main licensing organization for the securities industry. It requires licenses for many financial analyst positions. Most of the licenses require sponsorship by an employer, so companies do not expect individuals to have these licenses before starting a job.
Certification is often recommended by employers and can improve the chances for advancement. An example is the Chartered Financial Analyst (CFA) certification from the CFA Institute, which financial analysts can get if they have a bachelor’s degree, 4 years of experience, and pass three exams. Financial analysts can also become certified in their field of specialty.
Advancement
Financial analysts typically start by specializing in a specific investment field. As they gain experience, they can become portfolio managers, who supervise a team of analysts and select the mix of investments for the company’s portfolio. They can also become fund managers, who manage large investment portfolios for individual investors. A master’s degree in finance or business administration can improve an analyst’s chances of advancing to one of these positions.
Important Qualities
Analytical skills. Financial analysts must process a range of information in finding profitable investments.
Communication skills. Financial analysts must explain their recommendations to clients in clear language that clients can easily understand.
Computer skills. Financial analysts must be adept at using software packages to analyze financial data, see trends, create portfolios, and make forecasts.
Decision making skills. Financial analysts must provide a recommendation to buy, hold, or sell a security. Fund managers must make split-second trading decisions.
Detail oriented. Financial analysts must pay attention to details when reviewing possible investments, as small issues may have large implications for the health of an investment.
Math skills. Financial analysts use mathematical skills when estimating the value of financial securities.
To be successful, financial analysts must be motivated to seek out obscure information that may be important to the investment. Many work independently and must have self-confidence in their judgment.
Pay
The median annual wage for financial analysts was $76,950 in May 2012.
Job Outlook
Employment of financial analysts is projected to grow 16 percent from 2012 to 2022, faster than the average for all occupations. A growing range of financial products and the need for in-depth knowledge of geographic regions are expected to lead to strong employment growth.
Financial analysts provide guidance to businesses and individuals making investment decisions. They assess the performance of stocks, bonds, and other types of investments.
Work Environment
Financial analysts work in offices. Most work full time, and many work more than 40 hours per week.
How to Become a Financial Analyst
Financial analysts typically must have a bachelor’s degree, but a master’s degree is often required for advanced positions.
Education
Most positions require a bachelor’s degree. A number of fields of study provide appropriate preparation, including accounting, economics, finance, statistics, mathematics, and engineering. For advanced positions, employers often require a master’s in business administration (MBA) or a master’s degree in finance. Knowledge of options pricing, bond valuation, and risk management are important.
Licenses, Certifications, and Registrations
The Financial Industry Regulatory Authority (FINRA) is the main licensing organization for the securities industry. It requires licenses for many financial analyst positions. Most of the licenses require sponsorship by an employer, so companies do not expect individuals to have these licenses before starting a job.
Certification is often recommended by employers and can improve the chances for advancement. An example is the Chartered Financial Analyst (CFA) certification from the CFA Institute, which financial analysts can get if they have a bachelor’s degree, 4 years of experience, and pass three exams. Financial analysts can also become certified in their field of specialty.
Advancement
Financial analysts typically start by specializing in a specific investment field. As they gain experience, they can become portfolio managers, who supervise a team of analysts and select the mix of investments for the company’s portfolio. They can also become fund managers, who manage large investment portfolios for individual investors. A master’s degree in finance or business administration can improve an analyst’s chances of advancing to one of these positions.
Important Qualities
Analytical skills. Financial analysts must process a range of information in finding profitable investments.
Communication skills. Financial analysts must explain their recommendations to clients in clear language that clients can easily understand.
Computer skills. Financial analysts must be adept at using software packages to analyze financial data, see trends, create portfolios, and make forecasts.
Decision making skills. Financial analysts must provide a recommendation to buy, hold, or sell a security. Fund managers must make split-second trading decisions.
Detail oriented. Financial analysts must pay attention to details when reviewing possible investments, as small issues may have large implications for the health of an investment.
Math skills. Financial analysts use mathematical skills when estimating the value of financial securities.
To be successful, financial analysts must be motivated to seek out obscure information that may be important to the investment. Many work independently and must have self-confidence in their judgment.
Pay
The median annual wage for financial analysts was $76,950 in May 2012.
Job Outlook
Employment of financial analysts is projected to grow 16 percent from 2012 to 2022, faster than the average for all occupations. A growing range of financial products and the need for in-depth knowledge of geographic regions are expected to lead to strong employment growth.
Wednesday, February 12, 2014
Career Exploration Series: How to Become a Budget Analyst
What Budget Analysts Do
Budget analysts help public and private institutions organize their finances. They prepare budget reports and monitor institutional spending.
Work Environment
Budget analysts work in offices. In 2012, about 41 percent worked in government (federal, state, and local), and others worked in universities or for private companies. Most work full time.
How to Become a Budget Analyst
A bachelor’s degree is typically required to become a budget analyst, although some employers prefer candidates with a master’s degree.
Education
Employers generally require budget analysts to have at least a bachelor's degree. However, some employers may require candidates to have a master’s degree. Because developing a budget requires strong numerical and analytical skills, courses in statistics or accounting are helpful. For the federal government, a bachelor's degree in any field is enough for an entry-level budget analyst position.
State and local governments have varying requirements but usually require a bachelor's degree in one of many areas, such as accounting, finance, business, public administration, economics, statistics, political science, or sociology.
Sometimes, budget-related or finance-related work experience can be substituted for formal education.
Licenses, Certifications, and Registrations
Government budget analysts may earn the Certified Government Financial Manager credential from the Association of Government Accountants. To earn this certification, candidates must have a minimum of a bachelor's degree, 24 credit hours of study in financial management, 2 years of professional-level experience in governmental financial management, and they must pass a series of exams. To keep the certification, budget analysts must take 80 hours of continuing education every 2 years.
Advancement
Entry-level budget analysts begin with limited responsibilities, but advancement is common. As analysts gain experience, they have the opportunity to advance to intermediate and senior budget analyst positions.
Important Qualities
Analytical skills. Budget analysts must be able to process a variety of information, evaluate costs and benefits, and solve complex problems.
Communication skills. Budget analysts need strong communication skills because they often have to explain and defend their analyses and recommendations in meetings and legislative committee hearings.
Detail oriented. Creating an efficient budget requires careful analysis of each budget item.
Math skills. Most budget analysts need math skills and should be able to use certain software, including spreadsheets, database functions, and financial analysis programs.
Writing skills. Budget analysts must present technical information in writing that is understandable for the intended audience.
Pay
The median annual wage for budget analysts was $69,280 in May 2012.
Job Outlook
Employment of budget analysts is projected to grow 6 percent from 2012 to 2022, slower than the average for all occupations. The complexity of budget analysis will require more analysts, but employment growth is expected to be tempered by limited government spending.
Budget analysts help public and private institutions organize their finances. They prepare budget reports and monitor institutional spending.
Work Environment
Budget analysts work in offices. In 2012, about 41 percent worked in government (federal, state, and local), and others worked in universities or for private companies. Most work full time.
How to Become a Budget Analyst
A bachelor’s degree is typically required to become a budget analyst, although some employers prefer candidates with a master’s degree.
Education
Employers generally require budget analysts to have at least a bachelor's degree. However, some employers may require candidates to have a master’s degree. Because developing a budget requires strong numerical and analytical skills, courses in statistics or accounting are helpful. For the federal government, a bachelor's degree in any field is enough for an entry-level budget analyst position.
State and local governments have varying requirements but usually require a bachelor's degree in one of many areas, such as accounting, finance, business, public administration, economics, statistics, political science, or sociology.
Sometimes, budget-related or finance-related work experience can be substituted for formal education.
Licenses, Certifications, and Registrations
Government budget analysts may earn the Certified Government Financial Manager credential from the Association of Government Accountants. To earn this certification, candidates must have a minimum of a bachelor's degree, 24 credit hours of study in financial management, 2 years of professional-level experience in governmental financial management, and they must pass a series of exams. To keep the certification, budget analysts must take 80 hours of continuing education every 2 years.
Advancement
Entry-level budget analysts begin with limited responsibilities, but advancement is common. As analysts gain experience, they have the opportunity to advance to intermediate and senior budget analyst positions.
Important Qualities
Analytical skills. Budget analysts must be able to process a variety of information, evaluate costs and benefits, and solve complex problems.
Communication skills. Budget analysts need strong communication skills because they often have to explain and defend their analyses and recommendations in meetings and legislative committee hearings.
Detail oriented. Creating an efficient budget requires careful analysis of each budget item.
Math skills. Most budget analysts need math skills and should be able to use certain software, including spreadsheets, database functions, and financial analysis programs.
Writing skills. Budget analysts must present technical information in writing that is understandable for the intended audience.
Pay
The median annual wage for budget analysts was $69,280 in May 2012.
Job Outlook
Employment of budget analysts is projected to grow 6 percent from 2012 to 2022, slower than the average for all occupations. The complexity of budget analysis will require more analysts, but employment growth is expected to be tempered by limited government spending.
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