Importance of organizational psychology in companies

Importance of organizational psychology in companies

Claudia García

February 11, 2021

March 10, 2021

Why is the role of the psychologist relevant in the company? In order to understand the importance of the psychologists within a company, we must first know and understand what is organizational psychology.

What do we understand by organizational psychology?

Organizational psychology is an area of psychology that is primarily concerned with aligning the interests of the company and the needs of its employees. It aims to improve the quality of life and conditions of employees to achieve greater performance and efficiency. 

What are the benefits that companies can get from organizational psychology? 

Investing in organizational psychology offers numerous benefits. It is a field of psychology that tries to maintain the interest of the company and its employees in a joint and beneficial way. In addition, it performs functions of conciliation between both.

The aim of this area is to propose strategies to strengthen the culture of the organization. In this way, it contributes to a healthy environment, which generates a greater increase in productivity and employee engagement. Therefore, this would imply a reduction of turnover costs and new hiring processes for the company. In fact, according to data from the  Society of Human Resources Management (SHRM), the cost of replacing a qualified employee is aprox. 6-9 months of their salary, varying according to their position and wage. As an example, the cost of replacing an employee who earns $60k a year would be between $30k- $45k, considering the costs of recruiting, hirigin and training their replacement.

How does it benefit employees?

Some of the tasks that the organizational psychologists perform are to help solve problems more efficiently. Sometimes, they even count with the help of the employees themselves, so that they feel that they are part of the solution to the conflict.

Moreover, this area also reflects an improvement of the quality of life of the employees. Psychologists try to know their preferences and promote measures that allow them to opt for a greater conciliation with their personal life, career plans, relationship with their coworkers, etc allowing them to be more comfortable with their work.

In which areas of the company does organizational psychology intervene? 

Among their tasks, the psychologists that are part of this area are also in charge of personnel hiring. Here, their goals are to provide to the company the candidates that make a better fit to the company's needs. 

In cases of conflict, the psychologist acts as a mediator to facilitate communication in order to provide a fair negotiation that looks after the interests of the company and at the same time preserves the integrity of the individual. 

Finally, and perhaps most importantly, the psychologist must motivate team members to be results-oriented in order to achieve employee development and commitment.

How can the psychologist motivate employees? 

There are several techniques that organizational psychologists apply, some of which are more frequent, we summarize below: 

  • Group activities: Inside or outside the company, meetings can be held to improve relations between members of the organization.
  • Training programs: They are something that motivates the employees a lot since it means an improvement of the professional skills.
  • Promotion programs: The certainty of knowing that there are possibilities of remaining indefinitely in a job, understanding that you are part of the team and can aspire to reach positions of greater responsibility make the commitment of employees increase.

As we can see, the organizational psychology intervenes in many areas and has many functions that benefit both the company and the workers. Therefore, we can assure that investing in organizational psychology within the company is investing in quality of life, achievement orientation and good results.