How Much Do IO Industrial-Organizational Psychologists Make?
From the outside, many people may assume the most important factor in a successful company is profitability. Profitability allows for business growth and more the hiring of more workers to do more. But a company’s profitability is actually dependent on other things, too:
- A good product or service
- Work teams who communicate well
- Motivated employees who are trained well
- The ability of the company to identify and fix workplace problems
The last item is where the industrial-organizational (I/O) psychologist comes into the picture. I/O psychology is studying human behavior on the job. This branch of psychology looks at assessing the dynamics of individuals, groups, and organizations. That research is used to pinpoint solutions to workplace problems that can enhance the well-being and performance of employees and the company. (APA.org)
I/O psychologists may hold either a master’s or doctoral degree. They look at these types of questions in the workplace:
- How are work and personnel decisions made?
- How effective are employees communicating with each other?
- How well do team members collaborate and interact?
Knowing the answers to such vital business questions and others help the owners of the company to assess business systems and make changes to improve company and employee performance.
EXPERT VOICE: Is an industrial psychology career worth it? Yes, you can absolutely be very successful with a Master’s degree in Industrial-Organizational Psychology. I have been working in this field now, successfully, (based on salary alone)for over 30 years. So many options and career choices!
–Douglas Bush, MA Industrial and Organizational Psychology, Florida State University (1983)
With your advanced degree in industrial-organizational psychology, you may work on these human and organizational problems:
- Identify the training and development needs of employees
- Optimize the quality of work-life
- Formulate and implement employee training programs; evaluate their effectiveness
- Coach workers and company leaders
- Develop criteria to gauge the performance of workers
- Assess the preferences of consumers
To be employed in this psychology specialty, you need to earn a master’s or doctoral degree. This takes years of time and study. So learning how much an I/O psychologist can earn is an important factor in your educational planning.
Industrial-Organizational Psychologist Salary Information
The U.S. Bureau of Labor Statistics (BLS) reports salary data for hundreds of professions in the US, including for psychologists generally and industrial-organizational psychologists specifically.
The BLS reports the median annual salary for all psychologists is $92,740, with the top 10% earning a salary that starts at $151,880.
The specific salary breakdown nationally for industrial-organizational psychologists is:
- Bottom 25% salary – $90,100 and lower
- Median salary – $147,420
- Average salary – $154,380
- Top 25% salary – $219,410 and above
- Top 10% salary – $219,810 and above
The BLS also tracks industrial-organizational psychologist salary according to sector, listed here with average annual salaries:
- Management, scientific, and technical consulting services – $169,890
- Local government, excluding schools and hospitals – $164,850
- Scientific research and development services – $132,560
- Management of companies and enterprises – $127,950
- State government, excluding schools and hospitals – $96,030
- Colleges, universities, and professional schools – $93,490
I/O Psychologist Salary by State
The BLS has state salary data for industrial-organizational psychologists for two states:
California
- Median – $137,480
- Average – $136,300
- Top 25% – $154,780 and up
- Top 10% – $179,470 and up
North Carolina
- Median – $81,160
- Average: – $86,400
- Top 25% – $88,570 and up
- Top 10% – $128,360 and up
More generally, the BLS tracks data on many states for a related career category: all other psychologists, listed here by state and average salary:
| Hourly Salary | Annual Salary | |
| California | $64.60 | $134,360 |
| Hawaii | $60.48 | $125,790 |
| Oregon | $60.16 | $125,130 |
| Nevada | $59.93 | $124,650 |
| Massachusetts | $58.99 | $122,690 |
| Texas | $57.71 | $120,040 |
| Wisconsin | $56.08 | $116,640 |
| South Carolina | $55.86 | $116,200 |
| Virginia | $55.55 | $115,540 |
| New Jersey | $55.21 | $114,830 |
| Alabama | $55.10 | $114,600 |
| Ohio | $55.08 | $114,570 |
| Connecticut | $54.19 | $112,720 |
| Kansas | $54.01 | $112,340 |
| District of Columbia | $53.84 | $111,990 |
| Georgia | $53.84 | $111,980 |
| Maryland | $53.70 | $111,700 |
| North Carolina | $53.46 | $111,190 |
| Kentucky | $53.15 | $110,560 |
| Florida | $53.12 | $110,490 |
| South Dakota | $53.12 | $110,490 |
| Washington | $53.04 | $110,330 |
| North Dakota | $52.61 | $109,430 |
| Colorado | $51.94 | $108,040 |
| New York | $51.03 | $106,150 |
| Missouri | $50.74 | $105,540 |
| Arizona | $50.47 | $104,980 |
| Tennessee | $50.31 | $104,650 |
| New Hampshire | $50.25 | $104,510 |
| New Mexico | $49.49 | $102,950 |
| Pennsylvania | $49.36 | $102,670 |
| Rhode Island | $48.70 | $101,290 |
| Montana | $48.45 | $100,780 |
| Utah | $48.37 | $100,610 |
| Iowa | $47.86 | $99,550 |
| Illinois | $46.69 | $97,100 |
| Oklahoma | $46.39 | $96,480 |
| Maine | $46.19 | $96,080 |
| Idaho | $45.14 | $93,890 |
| Arkansas | $44.71 | $92,990 |
| Louisiana | $44.56 | $92,690 |
| Mississippi | $41.31 | $85,930 |
| Minnesota | $40.71 | $84,670 |
| Michigan | $38.83 | $80,760 |
| West Virginia | $28.15 | $58,550 |
Job Outlook for Industrial-Organizational Psychologists
The Bureau of Labor Statistics states that jobs for all psychologists will grow by 7% between 2023 and 2033, which is much faster than the average of 4%. Over that same time frame the number of industrial-organizational jobs is projected to increase by 5.8%.
EXPERT VOICE: Is an industrial psychology career worth it? Yes, an MS in I/O Psych is very valuable to employers and shows the person has not only a solid understanding of the HR standards and business ethics but also a desire for a deeper understanding of why employees do what they do. I found the degree program much more interesting than just a straight HR degree. Business can be a bit dry and boring to study for some but adding the psychology component makes it more fun for those of us who enjoy the study of human behavior. I highly recommend this program for one seeking employment in HR or a promotion to management for current HR practitioners.
–Kelly De, MS Industrial and Organizational Psychology, Grand Canyon University (2012)
BLS also states that I/O psychologists will be in more demand in the next decade to increase employee productivity and employee retention rates in a stronger economy. I/O psychologists will help organizations deal better with anti-discrimination and diversity policies. Organizations also will use these psychologists to design surveys, analyze and research to devise new tools for marketing evaluation and statistical analysis.
Businesses are understanding there are competitive advantages to be had by managing employees with psychological principles and analysis.
More students are turning to I/O psychology because of the uniqueness of the work and the relatively high salary. It is also possible for some in the field to work and earn a good salary with only a master’s degree; most other fields of psychology require a PhD to work in private practice.
May 2023 U.S. Bureau of Labor Statistics salary and labor market information for Psychologists, Industrial-Organizational Psychologists, and Psychologists, all other is based on national data, not school-specific information. Conditions in your area may vary. Data accessed February 2025.
Summary
There are strong job growth and salary potential for professionals in industrial-organizational psychology. Earning your master’s or doctorate in I/O psychology can likely ensure job options and salaries for years to come.
SEE ALSO: How to Become an Industrial Organizational Psychologist
It is worth keeping in mind, however, that while jobs in I/O psychology are growing quickly, it is still a small field. There are only a few thousand I/O psychologists working in the United States today.
But the outlook is bright, and earning your degree in this field can serve as an excellent background for other professions, such as external consultant; chief HR officer; research scientist; VP of talent management, or even college professor.