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Industrial Organizational Psychologist Career Paths in 2024: Job Outlook, Required Skills, and More With an economic recession in sight, organizations will continue looking for ways to maximize productivity and profitability. A sustainable and cost-effective way to do this is by ensuring employee well-being. Gallup, in its 2022 State of the Global Workplace Report, published that highly-engaged business units earn 23% higher profit than their disengaged peers. Past research from the same firm found that companies with an engaged workforce recovered from the 2008 recession faster than their industry equivalents. Keeping employees engaged has seldom been more crucial. And so, exploring industrial organizational psychologist career paths can be lucrative and rewarding. Compared to other psychology careers, it is relatively accessible. You can break into the field with an online master degree in industrial-organizational psychology. I-O psychologists study human behavior in the workplace and create programs that promote employee well-being, job satisfaction, and company loyalty. Because their work is so integral to company operations, their expertise is valued and well-compensated. Our team has scoured the latest research on industrial-organizational psychology careers to create this comprehensive guide. Prospective I-O psychologists might find it helpful to learn about the required skills, job outlook, and various career paths available in the field. Industrial Organizational Psychology Careers Table of Contents Why pursue a career in Industrial Organizational Psychology? An industrial-organizational psychologist applies I-O psychology principles to workplace programs, helping improve the quality of work life. They typically work in the human resources department or as an independent consultant called in to solve a particular problem. I-O psychologists typically devise strategies to improve employee productivity and morale. They can also contribute to operational tasks, like employee selection and training, organization development, and policy planning. One of the most common issues an I-O psychologist tackles is employee turnover, which stems from disengagement. According to a 2022 report by Work Institute, losing an employee can cost an organization about 33% of their annual salary in separation, replacement, training, and lost productivity costs. That amounts to a loss of $15,000 for an average worker. Left unchecked, the cost of turnover can add up to hundreds of thousands of dollars a year, especially in large organizations. A third of I-O psychologists work at firms with over 10,000 employees (Zippia, 2023), and they are paid handsomely. Professionals with an I-O psychology education typically earn more than most of their peers in HR, with a median annual salary of $139,280 . They are also the highest-paid psychologist practitioners by far. Beyond the financial rewards of the profession, industrial-organizational psychologists enjoy an intellectually challenging and versatile career. Their learning is constant, and they must be quick to apply new research findings and industry trends. Their well-rounded skill set is also an advantage. With multidisciplinary skills, they can easily adapt to roles outside psychology. Industrial Organizational Psychology Career Outlook Employee engagement is the highest priority initiative among HR professionals today, according to Lattice’s 2023 State of People Strategy Report. And as organizations invest in these initiatives, job opportunities for industrial-organizational psychologists are expected to increase by 4% through 2031. Job growth for this position is outpaced by that of all other psychologists, for whom demand will increase by 6%. But for those willing to pursue graduate studies and gain expertise in this niche field, job prospects are much more lucrative. Based on the median annual wage, industrial organizational psychology salary is 30% more than the salary of all other psychologists (U.S. Bureau of Labor Statistics, n.d.). Career prospects are also bright for new entrants to the field. According to BLS reports, demand for entry-level HR roles will grow by 8% through the decade. HR practitioners are also employable across industries, which allows them to enjoy more career mobility than most professionals. Getting started is relatively easy with the right educational background. Earning an undergraduate HR degree, psychology degree, or cheap business degree online can be good preparation for entry-level roles and higher education in I-O psychology. Required Skills for Industrial Organizational Psychologists I-O psychologist jobs require significant research, data analysis, and strategy planning. You can hone these skills in your undergraduate years by pursuing studies in the social sciences, like a human resources or criminal psychology degree . Courses in statistics or business management might also be helpful. Essential Skills for Industrial Organizational Psychologists Statistical Methods Statistical methods is the most common skill among I-O psychologists on Zippia, as cited by 43% on their resumes. Strong research and data analysis skills aid an I-O psychologist in identifying trends and deriving insights about employee behavior. With this knowledge, they can make data-driven recommendations to help improve work-life and productivity across the organization. Program Design Because they are well-versed in I-O psychology principles, I-O psychologists are uniquely qualified to design people management programs for organizations. These include onboarding, training, and employee engagement programs. Taking a scientific approach can help ensure the efficacy of the interventions they design and implement. Ethical Decision Making I-O psychologists, who must balance the interests of both an organization and its workforce, should be guided by ethics. Banks et al. discuss this in “Ethical decision making in the 21st century: A useful framework for industrial-organizational psychologists," published in 2021 in Industrial and Organizational Psychology . They write: “The best ethical leaders within our profession are those that are capable and succeed at operating in gray spaces where there are not clearly defined or optimal choices." Banks et al. posit that rather than viewing ethical behavior as an intrinsic value, “[e]thical decision making should be viewed in the same way you would view building a skill, habit, or new muscle, where growth and improvement in ethical decision making occurs over time with practice and experience." General Skills for Industrial Organizational Psychologists Effective Communication Workplace issues are not always visible to higher-ups. To help them understand what is going on, I-O psychologists must be excellent communicators. With strong oral and written communication skills, they can assemble clear and compelling reports to help guide high-level decision-making. Business Acumen An engaged workforce keeps a company afloat. By promoting employee well-being and addressing behavioral issues within an organization, I-O psychologists contribute significantly to the achievement of its business goals. To do their job effectively, they must understand the links between organizational psychology and business outcomes. I-O psychologists are typically employed in rapidly-changing environments. An inability to adapt can derail their work. They must be quick to pivot in response to new circumstances and work well with diverse groups of people. Problem-solving Employee disengagement, turnover, and inefficiency are all massive issues—and all are chiefly handled by I-O psychologists. They must be creative and strategic to resolve the myriad problems, large and small, that may arise at work. How to Start Your Career in Industrial Organizational Psychology Psychology is the most popular undergraduate major, taken by 47% of all I-O psychologists on the Zippia database. However, this is not the only path to a career in this field. General Education and English majors, for example, have also been able to pursue I-O psychology professionally. Business online degree programs are also a good option since I-O psychologists are often employed to help an organization meet its business goals. After completing a bachelor’s degree program, you will be able to hone your skills in various roles, including HR, research, and marketing. You will also be able to pursue a master’s degree and certification in HR disciplines. If online option is more convenient for you, feel free to read our guide on online psychology degree Texas . What can I do with a Bachelor’s Degree in Industrial Organizational Psychology? Human Resources Specialist Many I-O psychologists start their careers as assistants or specialists in an organization’s HR department. In entry-level HR roles, they can use their knowledge to help hire, train, and manage personnel. They also assist in developing performance management systems and employee engagement programs. Another way to become an HR professional is to start your human resources degree online . Research Assistant Aspiring I-O psychologists can hone their data-gathering and analysis skills as research assistants. In this role, they may use surveys, focus groups, or previous research to form the basis of academic studies. They also organize and analyze data points and conduct reviews on previously published literature. Project Manager A project manager oversees multiple projects within an organization. They work within a budget and established timeline to delegate responsibilities, coordinate with stakeholders, and help a project meet its goals. Experience in this role, which focuses on achieving tasks with optimal efficiency, can provide valuable training to aspiring I-O psychologists. Can you get an Industrial Organizational Psychology job with just a certificate? With a cheap online bachelor’s degree from a reputable institution, you can save thousands in tuition while gaining a strong educational background. After graduation, you can pursue professional HR certification, which can increase your chances of landing a job. A bachelor’s degree and relevant certificates will qualify you for entry-level roles in HR. However, you will have to earn a graduate degree to advance your career as an I-O psychologist. For specialized roles in organizational development or behavior analysis, many employers prefer candidates with at least a master’s degree. How can I advance my career in Industrial Organizational Psychology? Graduate education will prepare you for professional practice as an industrial-organizational psychologist. In the field of I-O psychology, a master’s can be considered a terminal degree. With this credential and a few years of relevant work experience, you can advance into senior or executive positions in HR or operations. To accelerate your career development plan in industrial organizational psychology, you can also pursue a doctorate. Doctorate holders enjoy a wider range of job opportunities, including those in research and teaching. You can then teach in the best psychology schools in Texas . You can also work as an independent consultant. A doctorate can also improve your earning potential tremendously, based on data from the Society for Industrial and Organizational Psychology’s (SIOP) 2022 Income and Employment Report . While the highest-earning master’s-level practitioners earned a median of $121,729 in 2021, the highest-earning doctorate holders made a median of $350,000—over 180% more. What can I do with a Master’s in Industrial Organizational Psychology? Corporate Human Resources Manager Human resources managers oversee the administrative functions of an organization, including hiring, training, and compensation. In the HR Manager role, I-O psychologists can use their knowledge of adult psychology to design and implement policies and programs that promote employee engagement and productivity. Training and Development Manager I-O psychology graduates can leverage their strengths in training and development roles. As training and development managers, they would be responsible for planning, designing, and managing the implementation of an organization’s training and development programs for employees at all levels of seniority. Behavior Analyst Behavior analysts are focused on understanding and solving behavior-related issues in the workplace. Their key tasks include conducting assessments, investigating environmental factors behind shifting behavior, and developing plans to help modify behavioral trends in a way that supports an organization’s goals. What kind of job can I get with a Doctorate in Industrial Organizational Psychology? Researcher I-O psychology graduates can contribute to scholarship in the field as researchers. Researchers can build on existing studies in HR and I-O psychology. They can also propose new theories and industry models. They typically work in academic institutions, government agencies, or private research organizations. Professor A doctorate can qualify you to teach at both undergraduate and postgraduate levels. I-O psychology professors can teach courses on topics like employee selection, performance evaluation, and organizational development. They might also oversee students conducting independent research in the field. Earning potential is generally higher for those employed by business schools, based on 2022 data from SIOP. Among surveyed academics, those in business schools made a median of $143,559 annually, 56% more than their peers in psychology departments. Organizational Development Consultant Organizational development consultants help organizations improve their performance by resolving issues related to company structure, culture, communication, and behavior. Organizations typically hire OD Consultants when they need to make significant changes to remain profitable, like restructuring or implementing new policies. Chief Operating Officer A Chief Operating Officer (COO) is a senior executive responsible for the day-to-day operations of a company. They oversee the company’s internal operations, including production, marketing, sales, and human resources, to ensure the organization runs efficiently and meets its strategic goals. Human Resources Director Typically the highest officer in an HR department, a human resources director oversees all an organization’s people management initiatives. They are responsible for managing and developing policies and procedures related to employment, employee relations, total rewards, and training. The HR director also ensures that the company complies with employment laws and regulations. Which certification is best for Industrial Organizational Psychology? Unlike most psychologists, I-O psychologists act as business strategists rather than clinicians. Most organizations do not require candidates to have a professional license to practice. Still, most states will require you to obtain one. To qualify for a license, you must hold a doctorate, complete between 1,500 and 6,000 fieldwork hours, and pass the Examination for Professional Practice in Psychology (EPPP). Specific requirements vary by state. Doctorate-level I-O psychologists can also seek certification from the American Board of Organizational and Business Consulting Psychology (ABOBCP). OBCP certification demonstrates a psychologist’s ability to apply one’s expertise in organizations and business settings. Alternative Career Options for Industrial Organizational Psychologists With competence in communication, business development, problem-solving, and data analysis, I-O psychology graduates can enjoy mobility in the tough job market. While they can pursue their career goals in industrial organizational psychology, they are also qualified for a slew of in-demand career options, including marketing, technology, and coaching roles. What else can an Industrial Organizational Psychologist Do? Marketing Managers . Marketing managers lead marketing teams. They use consumer data and insights to develop marketing strategies that communicate the benefits of a product or service to its target audience. For their work to be effective, marketers need a profound understanding of customer needs and preferences. An educational background in psychology can provide them with a solid foundation of knowledge and skills. User Experience Researcher . UX researchers study how people interact with technology and design products and services that meet their needs. With extensive knowledge of human behavior and cognition, UX professionals conduct user research and provide insights to designers and developers that can improve the user experience. Data Scientist . Data scientists tabulate and analyze large data sets to uncover patterns and insights about consumer behavior. Using their expertise in statistical analysis and data visualization, these professionals can help organizations make data-driven decisions. Policy Analyst . Policy analysts forecast the effect of impending legislation or policy on a group of constituents. They may work for government agencies, non-profit organizations, or private companies. They research and evaluate the basis of policies, develop policy proposals, and recommend policy amendments. Executive Coaching Consultant . Organizations hire executive coaching consultants to train their management teams and aspiring leaders. Professionals can also hire them for one-on-one training. Using a mix of assessments, goal-setting, and mentorship, Executive Coaches help leaders accelerate their professional development, better manage their teams, and improve performance as they work to achieve high-level goals. Choose From a Variety of Industrial Organizational Psychology Career Paths Aspiring psychologists interested in business can find fulfillment in an I-O psychology career. I-O psychologists can enjoy the interpersonal nature of the psychology profession without clinical training. And the barriers to entry are relatively low. You can begin your career by taking up affordable psychology, human resources, or business degrees online accredited by nationally-recognized accreditors. Pursuing a career in industrial-organizational psychology is not the easiest path to success. But it can be fulfilling and lucrative, especially for those who earn a professional license. In an I-O psychologist role, the impact of your work is tangible and measurable, which can make the job more satisfying. Banks, G. C., Knapp, D. J., Lin, L., Sanders, C. S., & Grand, J. A. (2022, May 26). Ethical decision making in the 21st century: A useful framework for industrial-organizational psychologists. Industrial and Organizational Psychology , 15(2), 220 235. Cambridge University Press. #J-18808-Ljbffr

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