How to retain overqualified talent: The power of HR practices (University of Valencia)
Feeling overqualified for a job can undermine employees’ satisfaction and increase their desire to leave the organization. However, these negative consequences are not inevitable.
A study conducted at IDOCAL (University of Valencia) examined how human resource practices can make a difference. The researchers followed 81 employed university graduates across two measurement occasions. Their findings showed that perceived overqualification was associated with lower job satisfaction, which in turn was linked to a greater propensity to leave. Importantly, this negative relationship with satisfaction became weaker when employees perceived greater opportunities to contribute at work. Such opportunities included participating in teamwork, making decisions, and having flexibility in how tasks are performed. Under these conditions, the indirect relationship between overqualification and the propensity to leave, through job satisfaction, also weakened.
The study therefore suggests that giving employees room to use their skills can help organizations reduce dissatisfaction and retain qualified talent.