When you have a position to fill, a candidate with vast experience and a long list of relevant skills might catch your eye. But should you move forward with an overqualified candidate? While a candidate with advanced qualifications can have many benefits, including in-depth knowledge and leadership potential, they can also present some unique challenges. Learn more about the disadvantages of hiring overqualified candidates to determine whether it's worth extending an offer — or whether you need to keep looking.
Disadvantages of hiring overqualified candidates
An overqualified candidate is someone who has more experience or skills than the job requires. For example, an overqualified candidate for an entry-level role might have a decade of experience working in a similar position. Alternatively, they may have held a position above the one they're now applying for.
It's not always bad to hire an overqualified candidate. In many cases, it can result in less training and increased productivity, as they can typically hit the ground running. However, there are some disadvantages to hiring an overqualified candidate. Here are a few reasons you should pause before extending a job offer to someone with more qualifications than necessary.
Turnover risk
If you know a candidate is overqualified for a role, they know it, too. There's a risk they might accept the job with no plans to stay with the company for the long term. It's possible they view the position as a temporary stopgap until they can find a job that better matches their qualifications. Additionally, they may find that the new job isn't a good fit for them and decide to leave, resulting in increased turnover. If this happens, you'll be right back where you started, hiring for the same position.
Boredom or disinterest at work
An overqualified candidate may take a lesser role with good intentions but quickly realize the position isn't challenging enough. They might become bored or disinterested at work, doing the bare minimum to complete their tasks. They may even put less effort into their projects, decreasing their productivity. When this happens, other team members may have to do more work to compensate, which can lead to a tense workplace environment and drain morale.
"If you know a candidate is overqualified for a role, they know it, too. There's a risk they might accept the job with no plans to stay with the company for the long term."
Training challenges
Many employers hire overqualified candidates, believing the onboarding and training process will be a breeze. However, that's not always the case. An overqualified employee may have their own way of doing tasks that doesn't align with organizational procedures. They might struggle to adapt to new processes and actually require more training to learn them. An overqualified employee may also challenge a company's methods, citing their experience as a reason they shouldn't have to follow established procedures.
Expectation of a promotion
Some overqualified candidates accept positions with the expectation that they can quickly move up in the company. There are times when it can be worth hiring a candidate for their leadership potential. However, when a candidate expects to move up quickly, they may believe they don't have to do much to earn the promotion. They might focus on simply biding their time in the position until they can advance.
Not only does this mentality impact productivity, but it can also frustrate other employees who want the chance to advance in the organization. If they see a new employee move up quickly without putting in much effort, they may start to feel like they don't have the same opportunities for advancement and begin to look for new jobs where their skills will be noticed and rewarded.
Higher salary demands
An overqualified candidate may simply be outside of your hiring budget. They may want a higher salary to match their additional skills and qualifications. If you want to hire the candidate, you might need to stretch your budget to bring them on board.
Other times, overqualified candidates accept lower positions with the belief that they can contribute quickly and start earning raises. While you want to reward employees for their good work, the truth is you may not have the budget to accommodate their expected pay increase. If this happens, an employee may become frustrated and start looking elsewhere for higher compensation.
When to hire an overqualified candidate
While there can be drawbacks to hiring an overqualified candidate, there are times when it makes sense to hire people with advanced skills and experience. You may choose to employ an overqualified candidate in these situations.
You need to ramp up productivity
If you have a backlog of work or a major project coming up, hiring an overqualified candidate can be a good way to quickly increase productivity. An overqualified candidate can generally start working right away with minimal oversight and guidance. Even if they require additional training on certain procedures, they can probably pick up these skills faster than someone with no prior experience.
You want a quick return on investment
Bringing on an overqualified candidate may provide you with a quick return on your investment. They may be able to start contributing ideas and working on complex tasks immediately. This accelerated return on investment can sometimes be worth the risk of an employee leaving the position early if they get bored or find a more advanced role.
You expect them to move up with the company
If you want to hire someone who can advance within the company, an overqualified candidate can be a good choice. Having employees who are ready to move into higher positions can bolster your plans for talent development. Additionally, you can learn how well an employee fits with the organization by hiring them for a lower position before eventually promoting them.
Tips for hiring an overqualified candidate
If you're deciding whether to hire an overqualified candidate, consider these tips:
Assess the risks
Start by assessing the potential risks of hiring someone whose experience exceeds the position's requirements. Do you sense the candidate will be bored in the role? Do you expect them to leave if they find a new opportunity elsewhere? Weigh those potential risks against the advantages of hiring someone experienced, such as their ability to handle difficult tasks and complete work quickly.
Consider their motivations
As you discuss the role with the candidate, ask questions to learn more about their motivations. For example, you might note their prior experience and ask why they've chosen to apply for a lower position. Their answers can give you a better understanding of their motivations for applying.
Be transparent about salary
It's best to be upfront about a position's salary when you're considering an overqualified candidate. In some cases, the candidate may gladly accept a lower salary in exchange for other benefits. For example, over half of employees would take a 20% pay cut for a job that allows them to prioritize their quality of life, according to data from the Ford Trends 2024 survey. If they ask for a higher starting salary, determine whether you can reasonably accommodate their request.
Adjust the position
If you can, adjust the position to better align with the candidate's experience and goals. For example, you might give them more high-level responsibilities or allow them to work on a passion project in addition to their day-to-day tasks. If you have little room to negotiate on salary, consider whether you can add other perks, such as additional vacation time or a flexible schedule, to sweeten the job offer.
There can be drawbacks to hiring an overqualified candidate, but there can also be valid reasons for doing so. When deciding whether to extend a job offer, weigh the pros and cons so you can make the right hiring decision for your business.
More tips for successful hiring:
If you're struggling to get candidates who are right for a position, the problem might be the job description. Make sure you're including these seven things in your job postings.
Hiring the wrong person can have massive consequences for your business. Check out these common hiring mistakes to avoid.
In a competitive market, it's tough to find the right person for a role. Here are some tips for finding viable candidates for open positions.
