Perceived overqualification - the belief that one has surplus skills compared to job requirements - can have negative implications for employees and employers alike, said Michael Harari, assistant professor at Florida Atlantic University in the US.
Researchers found that perceived overqualification occurs when an employee is expecting a job that utilises their qualifications but does not find themselves in such a position, leaving them feeling essentially deprived.
"That deprivation is what is theorised to result in these negative job attitudes. There's a discrepancy between expectation and reality," researchers wrote in the study published in the Journal of Vocational Behaviour.
Psychological strain can stem from employees who do not feel they are being rewarded for their efforts because there is an imbalance between their efforts and the reward structure of work, they said.
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"We invest effort at work and we expect rewards in return, such as esteem and career opportunities. And for an overqualified employee, that expectation has been violated," Harari said.
This is a stressful experience for employees, which leads to poor psychological wellbeing, such as negative emotions and psychological strain, researchers said.
The more overqualified an employee feels, the more likely they are to engage in counterproductive behaviours that impair the effective functioning of organisations, Harari said.
Employees who were younger, overeducated and narcissistic tended to report higher levels of perceived overqualification.
Researchers carried out an analysis of perceived overqualification synthesising 25 years of research to clarify disparate and conflicting findings in the literature.