Learn more about the similarities and differences between industrial-organizational psychology, human resources, and organizational development to figure out which career – and educational path – is right for you.
If you’re interested in a job where you can help people and make a difference in the workplace, then pursuing a career in human resources might seem like a logical path – but it’s not the only option. Depending on your goal, pursuing your master’s degree in Industrial-Organizational (IO) Psychology may better position you to make the kind of impact you’ve always imagined.
The Role of HR
Human resources professionals have responsibilities like recruiting and interviewing candidates for job openings, putting together compensation and benefit packages, and providing organizational training. What you may not realize is that, in general, HR looks out for the best interests of an organization. That includes everything from protecting the company from legal issues by developing and enforcing policies and procedures to managing timekeeping and payroll to handling employee discipline and termination. If a career in HR is your goal, you can qualify for a job after earning a bachelor’s degree, but it’s probable that you’ll eventually need to get an MBA in order to advance your career .
How I-O Psychologists Fit in the Workplace
In contrast, the field of Industrial-Organizational Psychology focuses on employees and how to improve their lives and well-being. Essentially, an IO psychologist applies the principles of psychology to the workplace, using intensive data and research to figure out how help employees feel more satisfied, motivated, and engaged at work. That includes assessing, measuring, and evaluating human behavior using hard data – which helps to avoid bias – to solve problems related to recruiting, productivity, general employee health and wellness, and other workplace concerns.
The field of Organizational Development places a similar emphasis on qualitative data, but instead of focusing on employees, it focuses more heavily on change management and using strategic interventions to drive organizational effectiveness. An organizational development specialist or organizational change management specialist often starts by using data and focus groups to diagnose organizational problems and then creates written or oral presentations to propose solutions and data-driven strategies. To become an IO psychologist or an organizational development specialist, you’ll need to build on a bachelor’s degree with a master’s in Industrial-Organizational Psychology.
While human resources, industrial-organizational psychology, and organizational development are all related, they each serve distinctive functions. No matter which of these rewarding career paths you choose, you’re likely to be well-paid and enjoy a decent level of job security over the next 10 years. According to the Bureau of Labor Statistics, human resources managers earn an average annual salary of $121,000, industrial-organizational psychologists can expect to make an average of $112,000 each year, and the average salary for an organizational development specialist is around $116,000 annually. All three industries are expected to grow by 5-7%, which is slightly faster than average, over the next 10 years.
No matter which option you choose, Touro can prepare you to achieve your goals and make a positive impact in the workplace in the way you always dreamed.
Fun fact
Industrial psychology began to take shape during WWI. The U.S. army needed to test and place millions of recruits, so psychologists created a group administered intelligence test called the Army Alpha.
Human resource specialist
Companies employ human resource specialists to screen and recruit new employees and to monitor their transition into new positions. They arrange training sessions, oversee employee relations, and are knowledgeable about all types of benefits and compensation payments. Typically, their work takes place within the companies they work for. This could be an office, health facility, or government agency.
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Wyoming
10% $37,710
25% $48,190
Median $63,490
75% $83,940
90% $109,350
Projected growth (2018-2028)
5.3%
Degree required
Bachelor’s
Management analyst
A management analyst assesses and makes recommendations on how organizations and companies can be more efficient. They guide company managers in finding approaches to increase profits, or design new protocols and procedures to improve the efficacy of the organization. Management analysts work in the finance industry and government departments.
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Tennessee
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Vermont
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Washington
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Wyoming
10% $50,990
25% $66,080
Median $87,660
75% $116,710
90% $156,840
Projected growth (2018-2028)
13.5%
Degree required
Bachelor’s
Training and development specialists
These specialists oversee employees and evaluate whether they have the skills to do the jobs for which they are employed. They assess current skill-sets and implement training and education programs to improve or develop new skills, as required. A training and development specialist works within large companies, administrative and support services, finance and insurance companies, and educational services.
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Michigan
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Nebraska
Nevada
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New Jersey
New Mexico
New York
North Carolina
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Ohio
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Oregon
Pennsylvania
Rhode Island
South Carolina
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Tennessee
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Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
10% $33,900
25% $45,870
Median $62,700
75% $83,510
90% $107,060
Projected growth (2018-2028)
9.4%
Degree required
Bachelor’s
Fun fact
I-O psychologists are sometimes expert witnesses in pay discrimination cases—when an employee believes a colleague is getting more money for doing the same work.
Human resource manager
This position involves the management of the human resources team in an organization. Tasks include strategic planning with other managers, recruiting, and hiring new staff. An HR manager is also responsible for mediating between executives and other members of staff, and therefore demands strong interpersonal and problem-solving skills.
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Tennessee
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Wyoming
10% $71,180
25% $91,730
Median $121,220
75% $162,720
90% $208,000
Projected growth (2018-2028)
7.1%
Training and development manager
In companies and organizations, training and development managers are responsible for providing training to new and existing employees to improve their skills. They research, often through surveys, the training needs of staff and then plan and deliver that training accordingly. This career can appeal to professionals who enjoy working with people and can easily explain the data they have collected.
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Alabama
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California
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Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
South Dakota
Wyoming
10% $66,270
25% $86,820
Median $115,640
75% $155,120
90% $200,210
Projected growth (2018-2028)
8.2%
Fun fact
A 2020 SIOP salary survey revealed that the average annual salary for someone with a Ph.D. in I-O psychology was $125,000, and for a master’s level I-O psychologist it was $88,900.
These specialists are tasked with conducting assessments and evaluations of employee skills to ensure individuals are correctly matched with jobs. They also assess the attitudes of employees toward management and the working environment. The job scope includes collecting data by developing tests, compiling assessment instructions, reviewing findings, and measuring statistics related to the workforce.
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Much like research, a good percentage of doctoral candidates in I-O psychology pursue careers in academia. This could include teaching, management, or administration. Most industrial-organizational professors have worked in positions outside of academia before pursuing the academic route.
Fun fact
The American Psychological Association (APA) only recognized I-O psychology as a specialization in 1996.