Industrial-Organizational Psychology Careers

business office
I-O psychologists apply psychological principles to workplace issues.

David Wall / (CC BY 2.0)

At a Glance

Industrial-organizational (I-O) psychology looks at how people work and finds ways to increase productivity and improve workplace environments.

Industrial-organizational (I-O) psychology is the study of workplace behavior. The field applies psychological principles to areas such as human resources, employee training, marketing and sales, and organizational development.

I-O psychologists may apply their research to increase workplace productivity, choose employees who are best suited for particular jobs, and do product testing.

Read on to learn what I-O psychologists do, the training they need, how much they can earn, and what the job outlook is like.

What Do Industrial-Organizational Psychologists Do?

I-O psychology is a diverse field with job opportunities in many areas.

Examples of specialty areas in I-O psychology include human-computer interaction and human factors.

I-O psychologists can work in the business sector, focusing on worker productivity, employee training, assessment, and human resources. I-O psychologists can also work in research or academic positions. Experienced I-O psychologists may have opportunities for consulting work.

The duties that an I-O psychologist will do depend on where they work and who they work for. For example, an I-O psychologist could work for a business to help choose and train employees for specific positions. An I-O psychologist could also assess company policies and practices to maximize efficiency and productivity.

How Much Do Industrial-Organizational Psychologists Typically Earn?

Typical salaries for I-O psychologists vary depending on their education and employer.

According to the Society for Industrial and Organizational Psychology (SIOP), the average salaries for I-O psychologists in 2015 were:

  • Starting salary for master’s graduate: $84,500
  • Starting median salary for doctoral graduate: $118,818
  • Academic: $101,000
  • Practitioner: $113,000

In 2018, the U.S. Department of Labor reported that the median annual salary for industrial-organizational psychologists was $97,260. The lowest 10% of earners made less than $51,350 while the top 10% made more than $192,150.

What Degree Is Required to Become an Industrial-Organizational Psychologist?

Some university programs offer bachelor’s degrees in industrial-organizational psychology. People with a bachelor's degree typically work in human resources, but there are job opportunities in other areas. Those looking for greater job opportunities and higher pay may want to consider continuing their education at the master's level.

People looking for more job opportunities and higher pay may want to consider continuing their education in I-O psychology. Someone with a master’s degree in I-O psychology can work in human resources, consulting, government, and the private sector.

The growing demand for I-O psychologists has increased the number of universities offering master's degrees in I-O psychology.

Beyond a master's degree, a doctorate in I-O psychology can afford the most opportunity for career growth and the highest salaries.

Where Do I-O Psychologists Work?

I-O psychologists work in many industries, as well as for private businesses and government agencies. In 2018, the U.S. Department of Labor reported that the largest area of employment for I-O psychologists was scientific research and development services. The highest paying area within the industry was also in scientific research and development services, with a mean annual wage of $149,780.

Consulting services made up the second-largest area of employment for I-O psychologists. Other industries they work in include corporate management, state governments, and educational institutions.

What's the Job Outlook for an I-O Psychologist?

According to the Occupational Outlook Handbook, industrial-organizational psychology is predicted to be one of the fastest-growing psychology fields between 2018 and 2028. The U.S. Labor Department reports that the field will grow by 13% in that time.

The Bureau of Labor Statistics notes the rigorous qualifications necessary to become an industrial-organizational psychologist. Professionals are usually expected to have at least a master's degree, but a doctoral degree is often preferred.

What makes I-O psychology such an in-demand field? Here are what some experts in the field have said.

"Businesses and other larger organizations are quickly realizing the competitive advantages that can be gained by managing their talent using practices that have a basis in evidence and science—and that's at the heart of what I-O psychologists do," said Doug Reynolds, a former president of the Society for Industrial and Organizational Psychology, told Industrial Safety and Hygiene News.

"The public is becoming more aware of something those of us in the field have known for a long time, and that is that I-O psychology is a highly rewarding profession that provides the opportunity to do meaningful work," Tammy Allen, another former president of the Society for Industrial and Organizational Psychology (SIOP), told Industrial Safety and Hygiene News.

A strong job outlook and competitive pay are just a few reasons why the career is attractive.

"Students embarking on a career in psychology quickly realize the vast career opportunities available within I-O Psychology," Tracy Kantrowitz, vice president of research and development for the consulting firm SHL told Industrial Safety and Hygiene News. "As indicated by the SIOP careers study of individuals with advanced degrees in I-O Psychology, professionals can hold jobs as diverse as external consultant, chief human resources officer, research scientist, vice president of talent management, or university professor. Diverse career paths combined with a substantial median starting salary for new PhDs ($78,000 as reported in the 2013 SIOP salary survey report) make the field attractive to those charting career options."

Pros
  • Career opportunities with a master's-level degree

  • Diverse range of employment settings (private sector, consulting, government, education)

  • Opportunities for self-employment (consulting)

Cons
  • Frequent changes in clients and projects

  • Potential for research to be tedious and lead to burnout

  • Requirement of doctoral degree for many higher-paying positions

Is a Career in I-O Psychology Right for You?

Do you enjoy research? Are you comfortable with statistics? If you enjoy finding practical applications for psychological research, I-O psychology could be a good match for you.

However, if you’d prefer working one-on-one with people, clinical or counseling psychology might be a better fit for you.

One of the great things about I-O psychology is that many positions require skills from different areas of psychology. Personality psychologysocial psychologyexperimental psychology, and statistics are just a few subjects that I-O psychologists need to tap into regularly.

8 Sources
Verywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. APA. Industrial and organizational psychology.

  2. APA. Pursuing a career in I/O psychology.

  3. DuVernet A, Poteet M, Parker B, Conley K, Herman A. Overview of results from the 2016 Income and Employment Survey. The Industrial Organizational Psychologist. 2017;54(3).

  4. U.S. Bureau of Labor Statistics, Occupational Outlook Statistics. Industrial-organizational psychologists.

  5. Washington University in St. Louis. Bachelor of Science in industrial and organizational psychology.

  6. U.S. Bureau of Labor Statistics. Psychologists.

  7. Industrial Safety and Hygiene News. I-O psychology tops the list of fastest growing occupations.

  8. O*NET Online. 19-3032.00 - Industrial-Organizational Psychologists.

By Kendra Cherry, MSEd
Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."