Career Outlook for Those with an Industrial Psychology Degree

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Industrial Psychology, also known as Industrial and Occupational Psychology or I-O psychology is one of the American Psychological Association’s (APA) fourteen sub-disciplines of psychology. I-O psychology is primarily concerned with the study of human behavior in the workplace. Industrial psychologists will work with industry, often times Human Resource departments, during the hiring, evaluation, and promotion periods. The work of an I-O psychologist is not limited to only hiring and promotion, many I-O psychologists will also work with teams to help develop cohesive units that can work efficiently as a whole.

Overview of Industrial Psychology Career

As humanity moves further into a fast paced, technology centered world; the need for psychology is growing faster than ever before. The Bureau of Labor Statistics estimates the job growth for all psychologists during the time period between 2012 and 2022 to be 12%. In February 2014, the Bureau of Labor Statistics ranked Industrial and Organizational Psychology as the fastest growing occupation in the United States. The BLS estimates a growth rate of 53% for Industrial and Organizational Psychologists between 2012 and 2022.

Opportunities in Industrial Psychology

Since, according to the Society for Industrial and Organizational Psychologists, I-O psychologists “specialize in human behavior in the workplace” are hired by many companies as consultants (and in some cases as permanent employees). Industrial and Organizational Psychologists can work in all facets of human resources to assist companies in creating more a more effective workplace. One of the main advantages to companies who hire I-O psychologists is that, unlike other consultants, I-O psychologists can show the exact cause behind the problems the company is experiencing. Those seeking work in an industrial psychology career will find a vast array of opportunities both within industry and academia.

Salary Expectations

The Bureau of Labor Statistics reports the median pay for psychologists in 2012 as $69,280 per year or $33.31 per hour. During the same year (2012), the BLS reports the median salary for Industrial and Occupational Psychologists quite higher at $80,330 per year or $38.62 per hour. As the job outlook for Industrial and Occupational Psychologists outpaces the psychology field as a whole with a 41% larger growth rate, one can expect the 16% difference in median salary to remain, or even widen in the coming years.

Median salary only tells part of the salary story. The median is a statistical measurement that indicates the number, at which 50% of workers earn more and 50% of workers earn less. If we look at the five percentiles that are typically reported by the BLS, we can quickly see that while the median salary is $80,330 per year, there are 10% of working I-O psychologists earning less than $49,570 per year, and there are 10% of working I-O psychologists earning more than $140,390 per year.

The salary in industrial psychology is depended on many factors including highest level of education completed, number of years of experience, industry, and location. For example, I-O psychologists tend to earn the highest salaries when they work in Tennessee, Virginia, and California. Likewise, they tend to earn the lowest salaries when they work in North Carolina.