Business Psychology Careers

What is a Business Psychologist?

Business Psychologists apply psychological principles to influence workplace behavior. A Business Psychologist aims to help organizations and their employees achieve top performance and job satisfaction. They work in both consulting services and as in-house employees.

Business Psychologists analyze people at all levels of a business. They work with administration to evaluate corporate culture, individuals and teams to help create a healthy and productive work environments. They focus on human resources, market research, and sales issues in the working environment to identify areas for improvement and find ways to make it better.

What is a Business Psychologist Responsible For?

Business Psychologists study the minds of employees in a business environment. They explore the psychological factors that influence and affect employees and companies. To identify areas for improvement, a Business Psychologist will evaluate a company’s objectives, corporate strategies, employees, and the overall work environment. They create job assessments and help companies select candidates for employment who share similar missions and goals.

Business Psychologists also assist companies in developing and training employees. They may focus on leadership roles or training positions. These roles strengthen the company by building a management foundation that understands and motivates employees, helping staff embrace the company’s mission. A Business Psychologist researches data collection methods and analytical techniques. They use focus groups, interviews, case studies, and questionnaires to identify the best corporate practices.

Business Psychologists can expect to work at any of the following tasks:

Assist with personnel selection
Design positive work environments
Establish employee training and motivation
Perform employee appraisals and evaluations
Improve employee morale
Provide employee counseling
Institute employee health and well-being initiatives
Provide leadership development
Improve organizational structure
Increase business efficiency
Enhance work safety and study the workplace environment
Maintain employee records

Where Does a Business Psychologist Work?

Business Psychologists work in private and public endeavors. They can be found in large and small companies. In the private sector, Business Psychologists are found in leadership positions, on the human resources staff, in general office management, working for union services, and training administration. Public positions for Business Psychologists can be found in the Department of Veterans Affairs, Federal and State Prison services, working in the Department of Defense, the Department of Labor, and in many private and public-school systems.

What Other Career Options Are Available to a Business Psychologist?

Business Psychologists help companies and their employees in a variety of businesses. The key function of a Business Psychologist is to ensure employees in the workplace are happy while performing their jobs. Compassion and dedication are the leading traits in this career choice. There are a multitude of positions across many fields of industry for those interested in becoming a Business Psychologist

A few career options available to Business Psychologists include:

Federal and State Agencies
Business Psychologists provide significant policy and human resources services to government agencies. State government offices and local police departments also depend on strong employee policies and guidance when working with the public. They function in leadership positions, ensuring agencies are setting and meeting goals for the best work environment. Some hold general management titles and others offer their services as consultants.

Marketing and Sales
A Business Psychologist has a natural edge in helping marketers communicate effective messages; analyzing purchasing trends and consumer thought processes to help them pinpoint their marketing activities. Consumer marketing is a highly competitive field. Understanding what motivates people to buy products and services is the foundation of successful marketing initiatives. A Business Psychologist can work in a variety of fields, from the automotive industry, to medical, industry, and advertising.

Human Resources
Managing human resource departments entails creating, revamping, and enforcing policies and procedures. Business Psychologists create policy that delineates the hiring process and employee job performance evaluation. A Business Psychologist is uniquely qualified to be a Human Resources Director, President of Human Resources, or Director of Employee Relations. Understanding employee motivations and company missions helps administration strategize with their most valuable assets, their employees.

College Professor
Professors with degrees in Business Psychology work in academia to teach students about industrial and organizational psychology, organizational management, consumer psychology, industrial relations, and engineering psychology.

Private Practice
Business Psychologists often provide consulting services to companies. Private practice enables a Business Psychologist to support clients in a diverse range of industries. Businesses with employees are located almost anywhere; private practices specialized in Business Psychology can thrive in a multitude of locations.

What Degree is Required to Become a Business Psychologist? What Do They Study?

Most Business Psychologists start with undergraduate work, earning their Bachelor’s degree in Psychology. While earning this degree, the student is introduced to topics of human development, cognitive development, counseling principles, social structures, and psychological theory. They also study statistical reasoning, history of psychology, abnormal psychology, and theories of personality.

During an internship, the student can apply newly learned techniques in problem-solving, decision making, group dynamics, and interviewing. The internship is a prime opportunity for the student to enhance their communication skills and critical thinking in a business setting.

A Master’s Degree in Psychology is usually sufficient to work in public and private schools, private practice, and general industry as a Business Psychologist. Some of the coursework a student earning their master’s degree can expect are theory and process, cross-cultural counseling, and human growth and development.

A PhD, or Doctor of Philosophy, is not typically required, but may give an edge to students in certain competitive fields, such as education and research.   


How Much Money Does a Business Psychologist Earn?

Compensation for a Business Psychologist varies significantly, starting at approximately $95,000 to over $135,000. The average annual salary is around $117,000. Field of industry, location and experience are significant factors in determining compensation.