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Rethinking underemployment and overqualification in organizations: The not so ugly truth

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  • Thompson, Katina W.
  • Shea, Thomas H.
  • Sikora, David M.
  • Perrewé, Pamela L.
  • Ferris, Gerald R.

Abstract

What comes to mind when you hear the term underemployment? Does a slight, disapproving frown purse your lips? Does pity flood your heart? Or do forgotten mental notations to study the topic permeate your brain? Although we are intimately familiar with unemployment and its effects, we are much less aware of underemployment and its impact on people and organizations. According to the U.S. Bureau of Labor Statistics, in January 2012, underemployment was estimated to affect more than 10 million people in the American civilian labor force. Its magnitude suggests that underemployment is a significant issue for all involved. By combining practical experiences from an outplacement firm (Right Management, headed by our second author) and what we have learned from academic research, we herein describe five types of underemployment, discuss widely held assumptions about the issue, and offer suggestions regarding ways that organizations might harness the power of this economy-wide phenomenon.

Suggested Citation

  • Thompson, Katina W. & Shea, Thomas H. & Sikora, David M. & Perrewé, Pamela L. & Ferris, Gerald R., 2013. "Rethinking underemployment and overqualification in organizations: The not so ugly truth," Business Horizons, Elsevier, vol. 56(1), pages 113-121.
    • Handle: RePEc:eee:bushor:v:56:y:2013:i:1:p:113-121
    DOI: 10.1016/j.bushor.2012.09.009
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    References listed on IDEAS

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    1. Helen Tam, 2010. "Characteristics of the underemployed and the overemployed in the UK," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 4(7), pages 8-20, July.
    2. Maltarich, Mark A. & Reilly, Greg & Nyberg, Anthony J., 2011. "Objective and Subjective Overqualification: Distinctions, Relationships, and a Place for Each in the Literature," Industrial and Organizational Psychology, Cambridge University Press, vol. 4(2), pages 236-239, June.
    3. Gordon F. De Jong & Anna B. Madamba, 2001. "A Double Disadvantage? Minority Group, Immigrant Status, and Underemployment in the United States," Social Science Quarterly, Southwestern Social Science Association, vol. 82(1), pages 117-130, March.
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    Cited by:

    1. Yejun Zhang & Mark C. Bolino & Kui Yin, 2023. "The Interactive Effect of Perceived Overqualification and Peer Overqualification on Peer Ostracism and Work Meaningfulness," Journal of Business Ethics, Springer, vol. 182(3), pages 699-716, January.
    2. Marinela Istrate & Raluca Horea-Serban & Ionel Muntele, 2019. "Young Romanians’ Transition from School to Work in a Path Dependence Context," Sustainability, MDPI, vol. 11(5), pages 1-21, February.
    3. Verbruggen, M. & van Emmerik, H. & van Gils, A.E.J. & Meng, C.M. & de Grip, A., 2015. "Does early-career underemployment impact future career success? A path dependency perspective," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).

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