How Much Do Occupational Psychologists Make?
Occupational psychology is another term for industrial and organizational psychology (I/O) psychology. According to the American Psychological Association (APA), occupational or I/O psychology involves the scientific study of human behavior in companies and other workplaces. Occupational psychology studies the principles of personal, group, and organizational behavior. The psychology professional then applies that knowledge to various problems in the workplace. (APA.org)
Becoming an occupational psychologist requires a master’s or doctoral degree in industrial-organizational psychology. You will develop a detailed knowledge of organizational behavior, career development, work attitudes, human decision making, and task and job analysis. Also, occupational psychology requires you to understand workplace ethics and statutory and case law related to issues in the workplace.
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Some of the skills and procedures you will use as an occupational psychologist include:
- Be able to identify employee training and development needs
- Design and optimize work and work-life for all employees in an organization
- Provider one-on-one coaching to employees
- Determine what consumer preferences are and the best way to reach them
- Devise criteria to gauge the performance of organizations and employees
As an occupational psychologist, your focus will be on optimizing human behavior in work environments. Becoming an occupational psychologist requires at least a master’s degree in I/O psychology. You may also need a Ph.D. degree to enter some industries. Before you earn this degree, learn more below about the potential salary of an occupational psychologist.
Occupational Psychologist Salary Information
Bureau of Labor Statistics (BLS) data shows the median salary for all psychologists is $92,740. The top 10% of psychologists with more experience and an advanced degree earn a salary that starts at $151,880.
The BLS tracks data specifically for occupational psychologists, also known as industrial-organizational psychologists, as follows:
- 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 occupational 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
The BLS has state salary data for occupational 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
The job outlook for psychologists is promising. The BLS projects that job growth for psychologists in general will rise by 7% between 2023 and 2033, much faster than the average rate for all jobs of 4% over this same time period.
While jobs should increase in occupational psychology, be aware there is stiff competition for positions in this specialty. Professionals equipped with a PhD in occupational psychology are more likely to find the best jobs. Also, having training in quantitative research will give you a competitive advantage.
More specifically to industrial-organizational psychologists, or occupational psychologists, the BLS projects a job growth rate of 5.8% for these professionals between 2023 and 2033. Employees wanting to advance their skills often need to take continuing education classes, and there will be more demand for professionals who lead these courses.
Summary
Occupational psychologists with a doctoral degree shouldn’t have a problem breaking the six-figure salary threshold. Job demand is on the rise in psychology. If you earn your doctorate in occupational psychology, you will face competition for the best psychology career opportunities, as this is a specialty that many psychologists enjoy.
Also, you will find the best job options in larger cities where large companies are situated. They are often hiring or contracting with occupational psychologists in the growing economy to get the most out of their workers and to prevent the best from switching jobs.
May 2023 U.S. Bureau of Labor Statistics salary and labor market information for Psychologists and Industrial-Organizational Psychologists is based on national data, not school-specific information. Conditions in your area may vary. Data accessed February 2025.