Overeducation in the Workforce: A Double-Edged Strategic Challenge for Firms

Abstract

The expansion of educational attainment has resulted in a surplus of educated individuals, intensifying educational mismatch in labor markets. This study explores the implications of overeducation on managerial behavior through qualitative interviews with HR professionals from Belgian firms. The findings reveal a dual perspective: while overeducation presents challenges such as turnover risks and wage pressures, it also offers opportunities for enhanced staff development and productivity. By implementing tailored management practices, firms can transform these challenges into competitive advantages. This research underscores the strategic importance of effectively managing overeducated employees, contributing to the broader discourse on educational mismatch and its organizational implications. Although centered on Belgian firms, the insights extend to global labor markets, providing actionable strategies for addressing educational mismatches across diverse contexts.

Keywords: Overeducation, Firm, Opportunity, Threat, Grounded theory