Traditionally, companies avoid hiring overqualified workers because they tend to be unhappy with the limitations of their position or are unmotivated to excel in assigned tasks and thus commonly quit. Although many are simply grateful to be working right now, overqualified employees still need to be strategically placed and supervised by talent managers to ensure they’re adequately challenged.

“Smart companies want the best athletes,” said Janice Ellig, co-CEO of executive search firm Chadick Ellig. “In a market with an oversupply of great talent, companies should always be on the lookout for people who will not just help them today but will fit their strategy going forward.”

In a labor market where job seekers sometimes outnumber openings 5 to 1, the rise of overqualified talent in companies is not surprising. These mature and skilled individuals are just as productive as their less skilled counterparts when placed and led properly.

“The cultural fit within an organization has to be there for an employee,” Ellig said. “The values have to be in sync. The communications have to be a two-way street. If those are all in play and in place, great people will surely stay.”

Managers: Challenge Them and Let Them Grow
Employers are seizing the opportunity to stock up on discounted talent, but without the foresight to develop their roles, many of these employees will not stay. Employees need challenges and room to stretch to maintain motivation. Organizations that hire overqualified employees need to find more meaningful work for these employees, challenge them and accommodate the types of skills and qualifications they have.

“If a position is not quite at the level of a candidate, a company can look at doing several things to fully utilize that talent and keep the person engaged,” Ellig said. “They can combine two positions into one to broaden the scope. If that’s not possible to do, they can look, and promise, to do that down the road. If they can’t do that now or later, the individual should be given a stretch project assignment, even if it’s outside of his or her particular department or sphere of expertise, to add fresh perspective, view and value to the organization and their own work.”