Job attributes affect the relationship between perceived overqualification and retention

Abstract

Abstract The paper explores the possibility of reducing the effect of perceived overqualification on employee retention (i.e., turnover intentions and job search behaviors) through non-salary (nonwage benefits, elasticity of work hours, and procedural justice) and salary (pay satisfaction) attributes of work. The problem of overqualification arises when the skills and experience or the knowledge and education of an employee are higher than those required for the job that the employee performs. This situation may induce an employee to leave the organization. This research uses the concept of perceived overqualification and addresses three unresolved issues regarding salary and non-salary job attributes which can modify the effects of perceived overqualification. These issues include the mechanism through which the aforementioned effects are transferred onto retention, interpersonal justice as a moderator, and the importance of negative affectivity, which may be responsible for the relationship between perceived overqualification and employee retention. The study uses conditional analysis of the process developed by Hayes and data from a survey conducted among 100 overqualified employees, who were identified among 826 randomly selected people in Poland. The findings show that non-salary job attributes can be a better instrument than salary in increasing the organizational commitment perceived by overqualified employees. A stronger organizational commitment prevents the overqualified from leaving the organization. As regards the relationship between perceived overqualification and turnover intention, the moderation impact of interpersonal justice (respect from supervisors) is stronger than that of pay satisfaction. Negative affectivity does not create the common tendency in perceived overqualification and retention. Based on the findings, I propose several practical recommendations.

Keywords

• Overqualification
• Organizational commitment
• Retention
• Nonwage benefits