What is Industrial/Organizational Psychology? Your Guide to a Fulfilling Career
Making Work Fun (and Productive) for Everyone
Interested in helping people thrive in organizational settings, including major corporations, agencies, and nonprofits? Want a leg up in a profession that commands one of the highest salaries in the field of psychology, and is growing at a massive rate? Want to be recognized for creating a healthy working atmosphere, boosting morale, and improving employees’ quality of life, as well as their productivity? Industrial-organizational psychology may be for you.
Industrial-organizational psychologists are highly valued within business management settings for their ability to apply the principles of psychology to increase productivity and efficiency, lower staff turnover rates, and, in essence, make work something that employees look forward to. It goes without saying that the work of improving the daily lives of employees can be incredibly rewarding, both personally and financially.
While it is a fast-growing field, the highly paid positions are extremely competitive. And one of the best ways to stand out in an application process is having a specialized degree in the field.
The Skill Set
I/O psychologists must be highly collaborative and research-oriented. They interact with upper levels of management to create workplaces that are both productive and easy to work in. Their work could include anything from creating or altering workplace policies, hiring processes, or performance metrics—and could include aiding corporate transitions and mergers.
Above all, they must be able to identify issues—whether they be individual behaviors and needs, or overall business environments—that might either increase productivity or hold employees back. They do this by observing, interviewing, and surveying both individuals and groups and by working with top management to create change and solve problems.
In general, I/O psychologists should have:
- Strong research and analytical skills, including both interviewing and survey-taking
- Strong communication/interpersonal skills
- Ability to observe and analyze both personal behaviors and data
- Organizational skills
- Critical-thinking/problem-solving skills
Pay and Prospects
There’s a reason that if you look up the general profession of psychologist on the United States Bureau of Labor Statistics website, and then research median annual pay across the field’s various specialties, I/O psychologists are listed at the top1, earning a median salary of $147,000 as of May 2023, compared to a median of $93,000 for psychologists across all specialties. Even better, the majority of I/O psychologist jobs are located in the sector that pays the most: management, scientific, and technical consulting, which has an annual mean salary of $169,8902.
While the number of jobs in the I/O psychology field is relatively small, it is growing fast: jobs in the I/O psychology field are projected to grow by 6 percent over the next decade3, which is twice the average (3 percent) growth rate for all occupations nationwide. Additionally, someone who specializes in I/O psychology is able to work in a variety of fields relating to training and development, human resources, and management consulting.
Additional potential career paths and their respective 2023 median pay, according to the U.S. Bureau of Labor Statistics, include:
- Human Resources Manager—$136,000
- Management Analyst—$99,000
- Human Resources Specialist—$67,000
- Social Scientist—$102,000
- Psychologist—$93,000 on average across specialties
Education and Licensing
Because of the high pay and the competitive nature of the field, those interested in becoming an I/O psychologist should strive for every advantage in their career search. Education level plays an outsized role, not just in getting a job but in negotiating a starting salary.
According to the U.S. Bureau of Labor Statistics4, I/O psychologists typically need a master’s degree.
Additionally, states often require licensing to become a practicing psychologist, I/O or otherwise. As of April 2024, psychologyjobs.com has a good rundown of licensing requirements by state5.
The Oldest, Most Respected I/O Psychology Program in Chicago
The I/O psychology program at Illinois Institute of Technology is the oldest, most-successful, and most-respected program in the Chicago area. Part of Lewis College of Science and Letters, the program offers both a master of science and doctoral degrees.
Through intensive training in research methods as well as experience in work settings, the college’s Ph.D. program allows students to acquire a strong theoretical and methodological background in various areas of I/O psychology, as well as experience in work settings. Students in the program have often presented and published their work.
Illinois Tech's I/O program follows the Society for Industrial and Organizational Psychology Guidelines for Education and Training. These guidelines, approved by the American Psychological Association, help to ensure that students receive the best possible training, covering areas of competence, using the best methods to develop that competence, and best curricula formats in which to teach those areas.
If you’re interested in examining Illinois Tech’s I/O psychology program—including scholarship opportunities, part-time and evening course options, and hands-on work experiences—request information today.
1www.bls.gov/ooh/life-physical-and-social-science/psychologists.htm#tab-5
2 www.bls.gov/oes/current/oes193032.htm#(2)
3www.bls.gov/ooh/life-physical-and-social-science/psychologists.htm#tab-6
4www.bls.gov/ooh/life-physical-and-social-science/psychologists.htm#tab-4