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The impact of overqualification on job search

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Steven Wald
Steven Wald
Steven Wald
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Abstract

Purpose The two main purposes of the paper are: first, to provide an empirical test of the widely‐held view among employers that overqualified workers are less committed as evidenced by heightened levels of job search, and second, to evaluate the three explanations of overqualification (matching theory, the theory of differential overqualification, and the career mobility hypothesis) in which job search plays a central role. Design/methodology/approach Maximum likelihood probit estimation is conducted on a sample of employed Canadians aged 18 and over who were surveyed in 2000. Predictors of job search are derived from the economic assumption that the employee's decision to undertake job search depends on a cost‐benefit assessment. Findings The empirical results indicate that overqualified workers are more active job searchers, and lend support to the matching theory view that overqualification is sub‐optimal from the worker's perspective. Originality/value This paper adds to the small number of European studies exploring the connection between overqualification and job search. The impacts of overqualification are especially important for Canadian employers given the high incidence of overqualification of the Canadian work force.
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The impact of overqualification on job search
Wald, Steven
International Journal of Manpower; 2005; 26, 2; ProQuest
pg. 140
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... The predictors of a job search are linked to the economic assumption that employees weigh costs and benefits before deciding to search for new jobs (Wald 2005). While the costs are associated with imperfect information and the process of searching for new employment, the gains are assessed in comparison with the previous or current employment situation: Will the new job correspond better to the workers' expectations? ...
... Three theories have been proposed to explain the relationship between overqualification and job search behavior: matching theory, differential overqualification theory, and the career mobility hypothesis (Wald 2005). According to the matching theory, mismatches between workers' skills and job requirements are temporary and arise due to imperfect information and the costs associated with a job search. ...
... The matching theory predicts a positive correlation, the differential overqualification theory predicts a positive correlation under certain circumstances (when unconstrained), and the relationship is uncertain under the career mobility hypothesis. Wald's (2005) empirical study, supported by data from the Canadian Changing Employment Relationship Survey, concluded that being overqualified increases the probability of a job search. Conversely, Marchante et al. (2007), in their study of the hospitality industry in Spanish Andalusia, did not find any supporting evidence for the job-matching theory or career mobility. ...
Quitters from Hospitality Industry: Misfit or Just Looking for Better Conditions?
Article
Full-text available
  • May 2024
After the COVID-19 crisis, a considerable contraction emerged in the labor supply of the hospitality industry. This investigation aims to identify some factors that justify the intention behind an ex-worker in tourism changing their occupation. In particular, we investigate if the change is motivated by skill mismatches or by a willingness to find more stable and rewarding jobs. Several datasets were combined to obtain multilevel information on all the unemployed from the hospitality industry between September 2022 and August 2023. A probit model was used to estimate the intention to change occupation, considering different personal, regional and occupational characteristics. Our results demonstrate that, for overqualified individuals, the intention to change occupation is motivated by trying to find better conditions and not by the mismatch per se. In contrast, the underqualified are significantly affected by the mismatch, which make them more vulnerable. Generally, movers are significantly influenced by the odds of having higher job stability and better wages (especially higher overtime premium) and are more frequently younger and higher educated individuals. Therefore, employers and policymakers should promote better wages, job stability, training, and career progression opportunities to reduce turnover in the hospitality industry.
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... Most studies of the impact of mismatch on on-the-job-search show that mismatched workers are more likely to be looking for a new job. S. Wald, D. Maynard, T. Joseph, A. Maynard, N. Parfyonova found that overeducationed workers were more likely to be engaged in job search [Wald, 2005;Maynard, Joseph, Maynard, 2006;Maynard, Parfyonova, 2013]. S. McGuinness and M. Wooden showed that overskilled were much more job mobile, than other workers, who are in jobs that provide a better skills match [McGuinness, Wooden, 2009]. ...
... The choice of the method is determined by the objectives of the study and the availability of data. Subjective measures are stronger, more proximal predictors of organizational behaviour [Bischof, 2021;Erdogan, Bauer, 2021;Wald, 2005]. Therefore, in the analysis of job satisfaction and job search behavior, self-possessed perceptions of the job match any appropriate method. ...
... Overeducationed and overskilled workers are more likely to be engaged in job search. The same results were obtained [Wald, 2005;Maynard, Joseph, Maynard, 2006;McGuinness, Wooden, 2009;Maynard, Parfyonova, 2013]. But horizontally mismatched individuals are exception. ...
Impact of job mismatches on job satisfaction and turnover intention: Case of Russia
Article
Full-text available
  • Aug 2023
Goal: to analyze the impact of different job mismatches (education, skill and horizontal), considered both individually and in various combinations with each other, on the job satisfaction and the turnover intention regarding the Russian case. Methodology: the research method is based on the identification of eight mutually exclusive groups, that differ in the combination of three types of job matches — from the full matched ones to the triple mismatched. Findings: all types of mismatches had a negative impact on satisfaction with nonmonetary labor characteristics. The most obvious negative relationship was found with professional satisfaction and moral satisfaction. Pay satisfaction is not influenced by overeducation and by the horizontal mismatch but it has been reduced by overskilling, separately or jointly with the two other types of mismatches. All kinds of mismatches (with the exception of a horizontal one) increase the probability of finding a job. Originality and contribution of the authors: the paper focuses on the combination of the three forms of mismatches and a multidimensional measure of job satisfaction. Such an approach made it possible to distinguish more effectively what facets of job satisfaction have been more influenced by mismatches. Furthermore, the paper increases understanding of the impact of job mismatches on non-monetary labor market outcomes. The results suggest that the focus of the HR firm policy should be placed on employees, who feel their skills are underutilized.
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... Literature on overqualification provides a number of consistent results indicating a positive relationship between perceived overqualification and turnover intentions. Among the researchers who confirm that overqualification contributes to a stronger intention to leave the organization are Burris [16], Bolino and Feldman [13], Wald [105], Maynard et al. [74], McGuinness and Wooden [76]. A number of empirical studies also confirmed that overqualification was associated with active job search behavior [30,31,72,105]. ...
... Among the researchers who confirm that overqualification contributes to a stronger intention to leave the organization are Burris [16], Bolino and Feldman [13], Wald [105], Maynard et al. [74], McGuinness and Wooden [76]. A number of empirical studies also confirmed that overqualification was associated with active job search behavior [30,31,72,105]. ...
... They show that competence and growth value was a significant moderator for the impact of perceived overqualification on affective commitment and active job search behavior. Clear promotion procedures are important for career advancement, as research into the nature of the relationship between overqualification and career success shows that this relationship is negative [28,36,105]. If overqualified employees are convinced that promotion in their organization depends on appropriate qualifications, they will see opportunities for career advancement and feel more committed to the organization and consequently will be more likely to continue working there. ...
Job attributes affect the relationship between perceived overqualification and retention
Article
Full-text available
  • Sep 2022
The paper explores the possibility of reducing the effect of perceived overqualification on employee retention (i.e., turnover intentions and job search behaviors) through non-salary (nonwage benefits, elasticity of work hours, and procedural justice) and salary (pay satisfaction) attributes of work. The problem of overqualification arises when the skills and experience or the knowledge and education of an employee are higher than those required for the job that the employee performs. This situation may induce an employee to leave the organization. This research uses the concept of perceived overqualification and addresses three unresolved issues regarding salary and non-salary job attributes which can modify the effects of perceived overqualification. These issues include the mechanism through which the aforementioned effects are transferred onto retention, interpersonal justice as a moderator, and the importance of negative affectivity, which may be responsible for the relationship between perceived overqualification and employee retention. The study uses conditional analysis of the process developed by Hayes and data from a survey conducted among 100 overqualified employees, who were identified among 826 randomly selected people in Poland. The findings show that non-salary job attributes can be a better instrument than salary in increasing the organizational commitment perceived by overqualified employees. A stronger organizational commitment prevents the overqualified from leaving the organization. As regards the relationship between perceived overqualification and turnover intention, the moderation impact of interpersonal justice (respect from supervisors) is stronger than that of pay satisfaction. Negative affectivity does not create the common tendency in perceived overqualification and retention. Based on the findings, I propose several practical recommendations.
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... Journal of Business Research-Turk 2165 uyumu üzerinde olumsuz etki yaratması (Shiue vd., 2010), grup çalışmalarının etkinliğinin azalması (Piezon ve Ferree, 2007) gibi olumsuz sonuçlarının olduğu söylenebilir. Wald (2005) yaptığı çalışmada, çalışanların aşırı niteliklilik algıları arttıkça mevcut işlerinde liyakate dayalı kariyer gelişim beklentilerinin azalacağını tespit etmiştir. Diğer yandan alan yazında, çalışanların mevcut işlerinden bekledikleri fayda azaldıkça kariyerizm eğilimlerinin arttığı bulgulanmıştır (Chay ve Aryee, 1999). ...
... Çalışma bulgularından hareketle, sahip oldukları fazla nitelikler sebebiyle, işleriyle uyumsuzluk yaşayıp işlerini küçük görerek, mevcut işlerinden beklentileri oldukça düşük olan (Wald, 2005) aşırı niteliklilik algısına sahip çalışanların fazladan gördükleri potansiyeli (nitelikleri) kariyerlerine yönelik umutsuzlukları ile baş etmede etkin bir araç olarak görüp performansa dayalı olmayan metotlar ve yasal olmayan yollar ile bu duruma çözüm geliştirerek kariyerist eğilimde olabilecekleri söylenebilir. Başka bir ifade ile mevcut işinde sahip olduğu fazla niteliklerin karşılığını alamayan aşırı niteliklilik algısındaki çalışanların fazla niteliklerinin karşılığını almak için yasal yöntemlerin dışında metotlar kullanıp, performansa dayalı olmayan yollar tercih ederek kariyerist eğiliminde olabilecekleri ifade edilebilir. ...
Algılanan Aşırı Nitelikliliğin Çalışanların KariyerizmEğilimleri ve Sosyal Kaytarma Davranışları Üzerindeki Etkisi (The Effect of Perceived Overqualification on Employees Careerism Orientationand Social Loafing Behaviors)
Article
Full-text available
  • Sep 2021
Amaç – Bu çalışmanın amacı, algılanan aşırı nitelikliliğin çalışanların kariyerizm eğilimleri ve sosyal kaytarma davranışları üzerindeki etkisini Kişi-iş Uyumu ve Kişi-Grup Uyumu teorilerine dayanarak araştırmaktır. İlgili alan yazında, algılanan aşırı niteliklilik ile birçok tutum ve davranış arasındaki ilişkileri inceleyen çalışmalar olmasına karşın, algılanan aşırı niteliklilik ile kariyerizm eğilimi ve sosyal kaytarma davranışları arasındaki ilişkileri inceleyen bir çalışma olmaması bu araştırmanın özgün yanını teşkil etmektedir. Ayrıca, uluslararası alan yazında aşırı niteliklilik kavramıyla ilgili birçok çalışma yapılmasına rağmen, Türkiye’de bu algının sonuçlarını belirlemeye yönelik nicel çalışmaların yetersizliği bu araştırmanın temel motivasyonunu temsil etmektedir. Yöntem – Araştırmanın örneklemini 2017 Aralık ve 2018 Ocak aylarında İstanbul’da kolayda örnekleme yöntemi ile ulaşılan 484 hizmet sektörü çalışanı oluşturmaktadır. Araştırmada veri toplama aracı olarak anket tekniği kullanılmış olup, hazırlanan anket iki farklı zaman diliminde aynı kişilere uygulanmıştır. Anketlerden elde edilen veriler SPSS programında açıklayıcı faktör analizi, korelasyon analizi, güvenirlik analizi ve regresyon analizi kullanılarak analiz edilmiştir. Bulgular – Araştırma bulguları algılanan aşırı nitelikliliğin hem genel olarak hem işini küçük görme boyutu özelinde kariyerizm eğilimi üzerinde pozitif bir etkisinin olduğunu gösterirken; algılanan aşırı nitelikliliğin sadece işini küçük görme boyutunun sosyal kaytarma davranışları üzerinde pozitif bir etkiye sahip olduğunu göstermektedir. Tartışma – Çalışma bulgularından hareketle, aşırı niteliklilik algısına sahip çalışanların fazladan gördükleri potansiyellerini (niteliklerini) kariyerlerine yönelik umutsuzlukları ile baş etmede etkin bir araç olarak görüp kariyerist eğilimde olabilecekleri söylenebilir. Ayrıca, aşırı niteliklilik algısındaki çalışanların sahip oldukları fazla niteliklerden dolayı mevcut işlerini basit (küçük) görerek yaratmış oldukları boşluğu sosyal kaytarma davranışları sergileyerek dolduracakları ileri sürülebilir.
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... The study of Perceived Overqualification has become a very important issue in the US labor market, this is because perceived overqualification can affect a large portion of the workforce (Wald, 2005), and recently the study of POQ conducted by Mckee-Ryan and Harvey (2011) has also received increasing academic attention. Several previous studies have shown a positive relationship between perceived overqualification (POQ) and turnover intentions (Feldman et al. (2002); Kraimer et al., 2009). ...
The Relationship Career Adaptability on Employee Turnover and Mediation Role of Perceived Overqualification at PT. Kimia Farma Diagnostika
Article
  • Sep 2024
The goal of this study was to identify the effect of career adaptability on turnover intention and to analyze the mediation role of perceived overqualification on employees of PT. Kimia Farma Diagnostika. This study involved 80 respondents with a quantitative approach and SEM-PLS multivariate analysis method for data analysis. This research found that career adaptability showed a positive and significant effect on turnover intention. In addition, it was also found that perceived overqualification partially mediated the relationship between career adaptability and turnover intention. The practical implications of this study are to provide insight to the management of PT. Kimia Farma Diagnostika to design more effective employee retention strategies. Further research is recommended to expand the scope of analysis at the organizational level, consider additional moderating variables, and address existing limitations. Thus, this study makes an important contribution to understanding and addressing employee retention issues in these companies.
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... Subsequently, Wald (2005) has argued that the lack of job satisfaction among the over-educated youth makes them vulnerable in the labour market as they are noted with the quest for a job search in most of their youth age. Therefore, skill mismatch has been observed to delay youth transition in the labour market, thereby creating a burden of unproductive labour on the economic growth of the country (Aggarwal & Gasskov, 2013). ...
The Youth Identity: ‘Whom to Count?’
Chapter
  • Sep 2023
The post-liberalization era in India has illustrated two significant characteristics of Indian youth labour market. First, it signifies ‘Demographic Dividend’, youth representing the highest share in total as well as the working-age population and is expected to continue till the year 2040 (Mehrotra et al., 2013), and, second, accelerated economic growth of Indian economy has resulted in the expansion of higher education (Thomas, 2015). As a result, the younger population reflects a bifold perspective of Indian economy. On one side, it represents potential human capital, whereas, on the other side, it marks a momentous challenge for the economy to create and provide ample and equitable opportunities for growth and development—employment and education being a few of them.
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... India has the youngest workforce that is difficult to attract and retain (Dutta and Mishra, 2021); however, it also has the dubious distinction of ranking fourth in the Asia Pacific region, as far as job seekers faking information on resumes and as job interviews are concerned (Singh, 2015). Overqualified workers are more active as jobseekers (Wald, 2005). Moreover, the increasing use of online labor markets has made it difficult for hiring managers to detect job candidates who exaggerate their academic accomplishments and work experience (Brink et al., 2019). ...
Who uses deceptive impression management to succeed at job interviews? The role of ethical ideologies and work locus of control
Article
  • Sep 2022
  • INT J MANPOWER
Purpose Drawing upon theories of ethical ideologies (idealism and relativism) and work locus of control, this study aims to examine how ethical ideology in job seekers influences their use of deceptive impression management (deceptive IM) behavior during job interviews. Design/methodology/approach A time-lagged study was conducted with two measurement waves to test our hypotheses. AMOS-SEM, which included bootstrapping (5,000 re-sampling) procedures to analyze the data, was used. Findings Results indicate that a job seeker's relativistic ethical ideology influences their use of deceptive IM behavior during job interviews and work locus of control – internal [WLOC (internal)] mediates this relationship. Exploring the relationship between ethical ideologies of job seekers and their deceptive IM behavior at job interviews, this study found that relativistic individuals with WLOC (internal) were more inclined to engage in deceptive IM. Originality/value To the best of the authors’ knowledge, this is one of the first studies to explore the role of ethical ideology in influencing deception IM behavior during job interviews. Knowledge of the relationship between job seekers ethical ideologies and deception IM behavior at job interviews would alert HR managers to adopt additional screening processes to detect candidates who indulge in deceptive IM behavior to exaggerate their image to influence the interviewer's perception.
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... Yaptıkları işe ilişkin aşırı niteliklilik algısına sahip olan çalışanların iş performanslarının (Alfes, 2013), iş tatminlerinin (Alfes, Shantz, & Van Baalen, 2016;Erdogan & Bauer, 2009;Congregado, Iglesias, Millán, & Román, 2016;Harari, Manapragada, & Viswesvaran, 2017), işten ayrılma niyetlerinin (Harari, Manapragada, & Viswesvaran, 2017;Hersch, 1995;Lobene & Meade, 2013;Russell, Ferris, Thompson, & Sikora, 2016) üretkenlik karşıtı davranış göstermelerinin (Fine & Edward, 2017;Liu & Wang, 2015;Luksyte & Spitzmueller, 2011), iş-aile çatışmalarının (Culbertson, Mills, & Huffman, 2011;, sağlıklarının (Johnson & Johnson, 1999), psikolojik iyi oluşlarının (Harari, Manapragada, & Viswesvaran, 2017), duygusal bağlılıklarının (Zheng & Wang, 2017), aktif iş arama davranışlarının (Harari, Manapragada, & Viswesvaran, 2017;Wald S., 2005;Maynard & Parfyonova, 2013) kariyer tatminlerinin (Wassermann, Fujishiro, & Hoppe, 2017) örgütsel bağlılıklarının (Russell, Ferris, Thompson, & Sikora, 2016) (Garcy, 2015), depresyon, stres, psikolojik sıkıntı düzeylerinin (Johnson & Johnson, 1996), örgütsel vatandaşlık davranışlarının (Harari, Manapragada, & Viswesvaran, 2017), sinizm ve psikolojik sözleşme algılarının (Luksyte & Spitzmueller, 2011), finansal zorlanmalarının (Wassermann, Fujishiro, & Hoppe, 2017) etkilendiği görülmüştür. İş dünyasında organizasyonların çalışanlarına hisse vererek ortak yapılması organizasyonların başarılı olmak adına uyguladıkları yöntemlerden biridir. ...
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... While some authors (e.g. Skrzek-Lubasi nska and Szaban, 2019;Wald, 2005) have posited a link between underemployment and entrepreneurship, none have researched the subject. The outcome of this hypothesis established an empirical link between underemployment and HE and demonstrated how this is possible. ...
Predicting hybrid entrepreneurship among secondary school teachers in Nigeria
Article
  • Oct 2021
Purpose The purpose of this study is to investigate how degree-holding secondary school teachers cope in a recessive economy by embracing hybrid entrepreneurship (HE). Specifically, we investigated how comparison with referent others, underemployment and relative deprivation led to HE. Design/methodology/approach The study adopted a cross-sectional research design. We used snowball and purposive sampling techniques to recruit 303 bachelor’s degree holders teaching in Nigerian public secondary schools in two states of the federation (Ondo and Ekiti states). We analyzed the data with regression path analysis and controlled for age and gender. Findings The results of this study showed the following. First, teachers were high in the feeling of pay underemployment and relative deprivation. Second, pay underemployment and relative deprivation directly led to HE. Third, teachers were indirectly high in HE through either pay underemployment or relative deprivation. Finally, underemployment and relative deprivation serially mediate the relationship between referent others and HE. Research limitations/implications Overall, the results suggest that teachers’ involvement in HE is necessity-driven to cope with the recessive Nigerian economy. However, future research should focus on a more experimental approach to determine the cause-effect relationship. Originality/value This is the first study to investigate how workers embrace HE to cope with the consequences of a recessive economy.
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أثر تصورات التأهيل المفرط في الاتجاهات الوظيفيّة لدى منسوبي جامعة الطائف: دراسة ميدانيةThe Impact of Perceived Overqualification on Job Attitudes from the Perspective of Taif University Employees: A Field Study
Article
  • Jun 2024
هدف الدراسة: هدفت هذه الدراسة إلى التعرف على مستوى ظاهرة التأهيل المفرط والاتجاهات الوظيفيّة (الرضا الوظيفي والالتزام التنظيمي)، والتحقق من أثر التأهيل المفرط في هذه الاتجاهات منوجهة نظر منسوبي جامعة الطائف.تصميم/منهجية/طريقة الدراسة: اعتمدت الدراسة على قائمة استقصاء، تتضمن مجموعة من العبارات لقياس متغيرات الدراسة، واختبار فروضها؛ ومن ثم تحقيق أهدافها.عينة الدراسة وبياناتها: أجريت الدراسة الميدانية على عينة عشوائية تضمّ 228 مفردة من موظفي جامعة الطائف الأكاديميين والإداريين.نتائج الدراسة: كشفت الدراسة عن أن ثمة علاقات سلبية متوسطة ذات دلالة إحصائية بين التأهيل المفرط والاتجاهات الوظيفية (الرضا الوظيفي، والالتزام التنظيمي). كما كشفت عن أن علاقة التأهيل المفرط بالرضا الوظيفي كانت أقوى منها بالالتزام التنظيمي. وأظهرت النتائج أيضاً وجود علاقة إيجابية قوية بين الرضا الوظيفي والالتزام التنظيمي. إضافة إلى ذلك، بينت النتائج وجود أثر ذي دلالة إحصائية للتأهيل المفرط في الرضا الوظيفي والالتزام التنظيمي.أصالة الدراسة: في ظل غياب الدراسات العربية في هذا المجال الحديث فإن هذه الدراسة تعدّ من أولى الدراسات التي تختبر أثر ظاهرة التأهيل المفرط في الاتجاهات الوظيفية بجامعة الطائف.حدود الدراسة وتطبيقاتها: اقتصرت الدراسة على موظفي جامعة الطائف الأكاديميين والإداريين.
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The New Deal at Work
Article
Full-text available
  • Jan 1999
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The Nature, Antecedents and Consequences of Underemployment
Article
  • Jun 1996
Despite the growth of underemployment in the United States, relatively little theoretical or empirical attention has been paid to this phenomenon. This article presents a multidimensional conceptualization of underemployment in terms of education, work duties, field of employment, wages, and permanence of the job. The article then presents testable propositions on both the hypothesized antecedents of underemployment (e.g., economic factors, job characteristics, career history, job search strategies, and demographics) and on the hypothesized consequences of underemployment (e.g., job attitudes, overall psychological well-being, career attitudes, job behaviors, and marital, family, and social relationships). Directions for future theory development, research methodology, and institutional assistance programs for the underemployed are discussed as well.
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Optimal “Mismatch” and Promotions
Article
  • Oct 1995
  • ECON INQ
Seeming ‘mismatches’ in which workers are either under-or overqualified, are shown to be optimal. From the firm's point of view, although turnover will be positively related to overqualification, training costs will be inversely related to overqualification. Further, overqualified workers constitute a pool from which promotions are made. Workers enter seeming mismatches due to search and mobility costs and because of opportunities for promotion. Estimates using a unique data set indicate that workers who are overqualified at hire receive less training and more promotions, and that workers overqualified for their current job are more likely to quit.
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Economics of personnel and human resource management
Article
  • Dec 2001
  • Hum Resource Manag Rev
The new economics of personnel and human resource management is analysed, including its current prominence as well as its historical antecedents. The economic paradigm as applied to personnel and human resource economics is illustrated through a variety of examples in the personnel area. These involve economic phenomenon (e.g., fixed hiring costs, asymmetric information, option values) highlighting their implications for personnel issues, as well as personnel phenomenon (e.g., deferred compensation, pensions, mandatory retirement) highlighting their economic rationale. Other phenomenon that otherwise seem difficult to explain or paradoxical are analysed including: superstar salaries; long-hours and overtime coexisting with unemployment and underemployment often within the same organisation; the reluctance of seemingly risk averse workers to accept small wage cuts to avoid the possibility of a layoff; the payment of fringe benefits that may not be valued by many employees; the “regular” hiring of temporary workers when permanent workers are available; egalitarian pay structures and fairness in compensation; the persistent reporting of vacancies on the part of firms but a reluctance to raise wages to fill those vacancies; the use of piece rates in some jobs and salary structures that are based on relative ranking of workers in other jobs; and tenure or “up-or-out” rules where people who are not promoted are required to leave rather than work for lower pay. The concluding section focuses on elements that are common across these applications.
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