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Why companies don’t hire overqualified candidates

Media: ETHRWorld
Spokesperson: Vijaykrishna Subrahmanyam

Sometimes, ‘being overqualified’ could be a reason for a CV to get rejected! Well! Most job descriptions have an upper experience or age limit. Predominantly, such cut-off limits are mostly found in entry-level jobs. But is this filtering fair? Why don’t some companies hire overqualified candidates? Let’s ask the talent acquisition experts.

Sometimes, ‘being overqualified’ could be a reason for a CV to get rejected! Well! Most job descriptions have an upper experience or age limit. Predominantly, such cut-off limits are mostly found in entry-level jobs. Ever wondered why recruiters often put this bar?

A management study published on ‘Too Good to Hire ? Capability and Inferences about Commitment in Labor Markets’ reveal that managers tend to perceive that overqualified candidates lack commitment to the position and the company as a whole, so they may bypass that candidate in favour of someone with less experience unless they are women, in which case being overqualified can be helpful.

“The demographics of the job seeker also influence the pattern. Women, particularly those in child-rearing years, might be seen as having commitment problems; in those cases, being overqualified can work in their favour, because it overcomes the hiring manager’s perception bias,” says Oliver Hahl, co-author of the research and Assistant Professor – Organisational Theory & Strategy, Carnegie Mellon University.

Organisations benefit from hiring overqualified candidates in some cases

According to Vijaykrishna Subrahmanyam , Senior Vice President and Global Talent Acquisition Head, Movate, whether companies should hire overqualified candidates cannot be definitively answered with a simple ‘yes’ or ‘no.’ It’s a balanced decision that depends on the specific needs and requirements of the organisation and the industry as a whole.

“In some cases, organisations benefit from hiring candidates with more qualifications than are strictly required for a job. This works effectively when the role demands specialised skills in areas such as data science, AI, or ML development. In these skill-intensive domains, hiring overqualified candidates seamlessly integrate, bringing with them valuable assets like strong motivation for growth, qualifications aligned with career progression, and the ability to meet both internal and external expectations, including customer needs,” Subrahmanyam says.

Subrahmanyam points out that for roles where simplicity and entry-level proficiency are sufficient, organisations look for candidates who meet the specific requirements rather than opting for overqualified individuals. “At Movate, specifically within our customer service business segment, we often emphasise aligning qualifications with job prerequisites. For example, while recruiting engineers for tech support positions, we strive to harmonise their career aspirations and skills with the job’s demands,” he says.