In 2023, only 33 percent of employees were engaged in the workplace — meaning that “they were highly involved and enthusiastic about their work and workplaces” — down from 36 percent in 2020, according to Gallup. Workplace engagement can have a direct impact on company performance, with Gallup noting that disengaged employees account for $1.9 trillion in lost productivity.  

Employing industrial/organizational psychologists (I/O psychologists) is one way that companies can work to increase employee engagement. By applying their understanding of psychology in the workplace, I/O psychologists conduct research and develop strategies to help companies improve morale and confidence among workers.  

Individuals who are interested in improving workplace conditions and enhancing organizational efficiencies can benefit from exploring how to become an industrial/organizational psychologist, including how an advanced education can help meet the job’s requirements. 

What Is Industrial/Organizational Psychology?

Industrial/organizational psychology (I/O psychology) is the study and use of mental health and psychological research to help resolve workplace issues and improve company morale and efficiency. I/O psychologists’ duties can touch every aspect of an organization, including human resources (HR). For example, they may regularly interview employees to understand workplace preferences and determine how conditions can be improved, such as promoting work-life balance and implementing better training seminars.  

I/O psychologists may also work with management teams to help develop policies or improve communication between managers and staff. They may also help develop better methods of assessing employee performance or managing major company transitions, such as mergers and acquisitions. They also have a strong understanding of administrative regulations, helping guide policy to remain ethical and not break the law. These psychologists may also help companies understand consumer behavior and better reach their target audiences.  

I/O psychologists can work for a wide range of employers, including private businesses, consulting firms, government agencies, research programs and nonprofits. They typically work in office settings alongside a company’s HR department. 

Steps to Become an Industrial/Organizational Psychologist

Industrial/organizational psychologists must fulfill several qualifications to meet most employer requirements, including earning an advanced degree and developing critical skills. Prospective I/O psychologists may also want to consider the benefits of gaining work experience to help them stand out from other job candidates. 

Earn an Advanced Degree

I/O psychologist positions typically require a master’s degree, which first requires earning a bachelor’s degree in a relevant field, such as psychology or social science. After meeting these requirements, prospective I/O psychologists can pursue an advanced education program, such as a Master of Arts (MA) in Industrial/Organizational Psychology degree program. An MA in I/O psychology program typically covers topics such as statistics, research, the psychology of leadership and organizational structures. 

Gain Experience

Some employers may prefer candidates to have experience in their specific industry to better understand the needs of its employees. For example, the employee culture of a consulting firm may be different from that of a nonprofit organization.  

Prospective I/O psychologists should pursue an entry-level position or internship in their industry of interest, potentially in an HR role. Some degree programs, including online programs, provide opportunities for students to pursue education and gain career experience simultaneously. 

Develop Key Skills

I/O psychologists use a combination of hard and soft skills to meet the needs of their organizations. These skills include the following: 

• Communication 

• Problem-solving 

• Critical analysis 

• Leadership 

• Data analysis 

• Business acumen 

• Psychological knowledge 

• An understanding of organizational structures 

• Empathy 

• Ethics knowledge 

Salary and Job Outlook of Industrial/Organizational Psychologists

Becoming an industrial/organizational psychologist can be a lucrative career choice. According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary of I/O psychologists was $147,420 as of 2023. This is significantly higher than the average annual salary of $48,060 for all professions. Individual salaries may vary based on the employer, the candidate’s experience level and the job’s location. 

According to the BLS, employment for this career is projected to grow by 6 percent between 2023 and 2033. This is higher than the average projected growth of 4 percent for all careers. The BLS suggests that this growth is due to organizations requiring professionals to assist in implementing employee training and improving office morale. 

Improve the Workplace as an Industrial/Organizational Psychologist

Understanding how to become an industrial/organizational psychologist helps individuals grasp the importance of advanced education in helping organizations improve their workplace environments. SEMO Online’s MA in Industrial/Organizational Psychology degree program provides a solid pathway toward pursuing this career. 

SEMO Online’s program provides students with the necessary tools to help organizations function more efficiently, with a curriculum covering topics such as workplace policy, engagement methods, research design and compensation analysis.  

Discover how you can take your next career step with SEMO Online.