Most employers say they hire overqualified candidates despite retention concerns

While 7 in 10 U.S. hiring managers say they typically consider overqualified candidates, many also express concerns about low engagement and quick exits, according to an Oct. 8 report from Express Employment Professionals and The Harris Poll.

In fact, three-quarters of employers said they believe overqualified hires struggle to stay motivated in lower-level roles, and they worry these hires will leave as soon as a better opportunity comes along. In response, 58% said they’d rather train someone new than risk disengagement.

“Overqualified candidates represent a chance to secure top talent in today’s market,” Bob Funk Jr., CEO, president and chairman of Express Employment International, said in a statement. “The key is to focus on skills-based hiring, which widens the talent pool by looking beyond resumes and degrees and makes the best use of a candidate’s abilities and ambition. Without that alignment, the risk of a quick exit is real.”

The vast majority of hiring managers — 84% — say they’ll pay higher salaries to candidates with in-demand skills, according to a Robert Half report. Candidates said financial incentives, work-life balance perks, retirement planning and health and wellness offers could entice them to switch employers.

In the Express Employment Professionals survey of 1,000 U.S. hiring decision-makers, about half noted the benefits of hiring overqualified candidates, such as the workers having more confidence on the job, being more productive, having better decision-making skills, requiring little to no training and being able to mentor junior employees.

However, job seekers said the presence of overqualified candidates can create an uneven playing field, especially when most candidates believe companies are more likely to hire them. Even so, 87% of job seekers believe it’s appropriate to apply for jobs they’re overqualified for, particularly for the pay, better work-life balance or passion for the industry.

Hiring employees who show promise can help close skills gaps, according to a Gartner report. Hiring managers and learning and development leaders can work together to boost internal mobility and company performance by not requiring workers to show skill proficiency before shifting them to new roles, the report found.