Exploring overqualification : reasons for its existence and how to retain overqualified employees

Abstract

Overqualification in South Africa has increased over the past years and will continue to increase due to limited job opportunities in the country. Overqualified employees, if managed properly, can benefit organisations as they have excess capacity and skills that possibly provide them with a competitive advantage. However, retaining these employees is a challenge. Research on retention strategies has not looked at the retention of overqualified employees specifically and in South Africa, research on underemployment has focussed on time-based underemployment and not overqualification. The study looked at the reasons for the existence of overqualification in a South African context and how organisations can retain these employees using elements of the reward model. A qualitative study was conducted by interviewing overqualified employees currently performing administrative roles and their managers. The study found that the poor economic situation in South Africa and the need for job security are among the reasons for the existence of overqualification. The main reasons to stay or leave an organisation are career development opportunities and challenging and stimulating work. The reward model of an organisation can mitigate this turnover if it is aligned to those aspects that overqualified employees value. The study provides insights that will enable organisations to make better use of their capabilities.