Evidence shows there are clear benefits to organisations using occupational psychology services. All respondents in the DOP research survey in 2006 cited a range of potential benefits from occupational psychology, including improved recruitment, retention and capability of employees; improved service/quality; improved productivity/efficiency; improved financial performance; reduced conflict and happier/healthier employees. A significant number didn’t formally assess the business benefits or relied on gut feel, whilst many did take steps to evaluate the effectiveness of interventions.

The graph below shows the benefits that respondents associated with occupational psychology. The more immediate benefits such as effective recruitment and engagement come top with financial performance the least readily identified (in contrast with the drivers of spend above!). Interestingly, improved productivity (obviously closely linked to financial performance) is quite high on the list.

All respondents cited at least two or more benefits - there is consensus that occupational psychology is useful, but little consensus on what it is useful for!

There are a number of potential explanations for these results. It could be that the overall spend on occupational psychology is relatively low and therefore doesn’t require any detailed justification. Alternatively, occupational psychology may be seen as a basic ‘hygiene’ factor which is necessary, but simply needs to be cost effective. Another explanation may be that various occupational psychology services are subsumed within much larger budgets that have been justified as part of major strategic programmes, such as recruitment, or redundancy budgets agreed as part of a merger, for example. The marketing, and therefore the justification of occupational psychology depends somewhat on whether it is on behalf of small partnerships (who may not demand huge budget spend) or larger firms (which may need larger project budgets). The buyer for the future also needs to be considered - is it the HR Manager (with little budget but no great need for justification), or the HR Director (concerned with bigger programmes to save cost for example), or the CEO who may be concerned with massive strategic change? Occupational psychologists often tend to be seen as technicians, not as strategic advisors⁸ and occupational psychology would benefit from a much a clearer and widely understood definition.

Most occupational psychology is sold on the basis of specific services in terms the user can easily understand (e.g. assessment, psychometric testing, attitude surveys) rather than specifically as occupational psychology. The relationship between occupational psychology as a discipline and its practical application within each area may need to be clearer.

The Division of Occupational
Psychology is part of:
The British Psychological Society