Have you ever worked for a company with problems?
Maybe turnover was high, and you had to keep training new people in only to see them disappear after a few months.
Maybe the compensation was low and employee satisfaction with their job even lower.
Maybe the workplace felt toxic, with gossip that wound up influencing people's jobs, human resources managers who didn't support you or other problems that made each workday stressful.
If you've been somewhere like that, you know how miserable it can be. These problems are solvable! You might think. We are all wasting effort, time and money where we don't have to!
If that's how you think, you might have the makings of an industrial organizational psychologist.
Industrial organizational (I/O) psychologists use psychological principles and research methods to solve real workplace problems like burnout, hiring challenges and team dysfunction. Their work supports both employee well-being and organizational performance.
If you’re interested in psychology, human behavior and workplace improvement, becoming an I/O psychologist might be a great fit. Read on to see what education and experience you'd need to get started in industrial organizational psychology.
1. Start with a bachelor's degree in psychology
Becoming an industrial and organizational psychologist requires formal education, starting with a bachelor’s degree and often continuing through graduate or doctoral study, according to the American Psychological Association (APA®).1
A bachelor’s degree in psychology, business or another social science is the first step. Undergraduate programs introduce students to how organizations operate, how people behave at work and what motivates them. These programs also cover research methods and basic data analysis—essential skills in I/O psychology.
It is important to learn foundational concepts around how businesses are structured and how they operate as well as how people behave and what motivates them. This can apply in the workplace as well as with things like consumer behavior.
An undergraduate degree program will also introduce critical soft skills and basic research methods which are important in I/O psychology.
The bachelor’s degree is just the beginning; it doesn’t qualify a person to be an I/O psychologist in corporate, academia or private practice.3
2. Earn a master’s degree in I/O psychology
A master’s degree in I/O psychology—or a psychology degree with a concentration in I/O—is usually a two-year program. This graduate degree focuses on courses such as:
- Organizational behavior
- Job analysis and performance appraisal
- Psychometrics and psychological testing
- Work motivation and job attitudes
Many programs end with a capstone project, thesis or real-world case study that gives students a chance to apply what they’ve learned. Graduates with a master’s in I/O psychology can pursue roles in organizational development, consulting or talent management. Most roles at this level do not require licensure.
The APA adds that most I/O psychologist entry level positions will require a master's degree, and that the best opportunity will be for candidates who progress all the way through a PhD program.2
3. Consider a doctoral degree
For some students, a doctoral degree is the next step, especially if their goals include teaching, publishing or clinical work. Two common options are the PhD and the PsyD.
PhD in I/O psychology
If you want to work in academia or lead research teams, you'll want to pursue a PhD. These programs follow the scientist-practitioner model, preparing graduates for careers in universities or research-focused organizations. PhD students typically complete a dissertation and contribute to theoretical research.
PsyD in I/O psychology
If you'd prefer to consult with businesses and write about professional development, choose a PsyD. This degree focuses on real-world application and often includes case studies, supervised experience or capstone projects instead of traditional dissertations. Some PsyD programs still require a research component, but the emphasis is on practice over theory.
Both types of doctoral programs may meet the requirements for psychologist licensure, depending on the state and program accreditation.5
4. Get licensed (if your path requires it)
Whether or not you need psychologist licensure depends on the type of work you plan to do and the work environments you want to enter. Many I/O psychology roles do not require a license, but some positions—especially in clinical settings—do.
Licensure not always required
In most corporate, government and consulting roles, I/O psychologists are not required to hold a license. These professionals still use their advanced degrees and skills to improve organizations, but they don’t perform clinical tasks like diagnosing mental health conditions.
Typical responsibilities that don’t require licensure include:
- Conducting employee surveys and analyzing results
- Supporting human resources departments with hiring and training
- Designing training and development programs
- Improving leadership, communication and workplace behavior
- Providing coaching—not therapy—to staff or leaders
These roles are common in private practice, corporations and various industries, where the goal is to improve performance and employee satisfaction without providing direct mental health services.
When licensure is required
Licensure is required when an I/O psychologist’s work involves clinical responsibilities such as diagnosing mental health conditions or providing therapy.
For example, let's say Andrea works as an I/O psychologist for a company that manages employee assistance programs (EAPs) for city employees. She regularly meets one-on-one with staff to diagnose issues like anxiety or depression and may offer short-term therapy. Because she provides clinical care, Andrea must be licensed in her state.
In contrast, Marlow also works in I/O psychology but focuses on survey design and policy improvement. She does not diagnose or treat employees, so she is not required to be licensed. Only licensed psychologists are legally allowed to use the job title “psychologist” and must include their license number when doing so.
Achieving a license to practice psychology and to use the title psychologist usually requires four large steps.
- Earn a PhD or PsyD from an APA-accredited program in psychology.
- Complete a supervised postdoctoral experience, usually one to two years.
- Pass the Examination for Professional Practice in Psychology (EPPP).
- Meet state-specific requirements, which may include additional tests, background checks, or continuing education.
Where I/O psychologists work
I/O psychologists are valued in many work environments and across various industries. Their skills apply anywhere organizations want to improve systems, support employees or solve workplace challenges.
Common places I/O psychologists work include...
- Corporate offices – helping HR departments improve hiring, training and team cohesion
- Government agencies – increasing efficiency and supporting employee well-being
- Consulting firms – advising multiple organizations on workplace strategies
- Academic institutions – conducting research or teaching
- Private practice – offering services directly to businesses or individuals
Whether designing surveys, coaching leaders or analyzing workplace behavior, I/O psychologists help organizations improve performance while supporting the people who power them.
Industrial and organizational psychology isn't only for psychologists
Now that you know how to become an industrial organizational psychologist, you might be wondering if you really want to sign up for all that education. For some, it's the perfect fit! But for others, it might not be feasible.
If so, you should know there are many other careers where you'd do this type industrial-organizational problem solving.
Your career path could take you into organizational leadership, for example, a field that often utilizes these same psychological principles to help guide companies from within.
Curious? Check out What Is Organizational Leadership? HR's Other Half.
1Pursuing a Career in I/O Psychology, American Psychological Association, (2013), https://www.apa.org/education-career/guide/subfields/organizational/education-training
2Rasmussen University does not offer a master’s degree program in Industrial- Organizational Psychology.
3Rasmussen University does not offer a bachelor’s degree program in Psychology.
4APA® is a registered trademark of American Psychological Association.
5Rasmussen University does not offer a doctoral degree program in Industrial-Organizational Psychology. For further information on professional licensing requirements, please contact the appropriate board or agency in your state of residence