You can work in an applied I/O setting with either degree. As with most disciplines, however, the PhD will provide greater earning potential; and, if it’s applied research you’re interested in, greater autonomy.
Having worked in consulting/technical assistance/training/applied research in multiple sectors, I can safely assert that there is a viable market for I/O degrees. Safe odds are that the sources recommending the MBA are business types who, no offense to them, are at best minimally familiar with exactly what I/O Psychologists do. From HR to organizational development and policy, I/O Psychologists are everywhere, with hands in a bit of everything. I have no doubt you’d find yourself very marketable with an I/O degree.
No one type of experience universally strengthens I/O applications. Everything is considered relative to other characteristics of your package. Your staffing and research experience are likely to set your application apart from others. This is particularly true of programs whose applicants tend to be straight from undergrad with minimal relevant work or research experience.
The differences between OB and I/O programs are slight enough that your interests would likely be well-served in an OB program. Are the programs PhDs in Business with OB concentrations or PhDs in OB? From what I understand from business students, this makes a difference as a PhD in Business might “price you out” of a large number of private sector positions.
I think you should be straightforward about your career aspirations, as masking them might earn you admission to a program that really doesn’t fit your interests. For example, a program geared toward producing professors and academic researchers might make you miserable because it focuses on preparation in a direction you don’t want to go. Just a thought to consider in your application process…
Good luck!
