Hiring over Qualified Candidate

Introduction

This report is to analyse the discussion on "Organization are better off if they spend on the recruitment and selection of employees beyond their current level of job duties rather than spending a great deal of money on training." This report will look at the advantage and disadvantage of hiring external resource that has higher competency than the job offered, and the advantage and disadvantage of training internal staff to build their competency.

Before hiring could happen, it is important to perform job analysis to identify the job description and specification then identify the key competency for the target applicants. Without the job analysis process, hiring manager will not have a good information on the target candidate they are looking for.

Below we will analyse the advantages and disadvantages of hiring over-qualified candidates compare to training internal staff to build the competency from each of the HR aspects.

Motivation-Training

"Structured training and development programmes are essential for the development of long-term morale and motivation. Whenever people are asked what motivates them personal development features highly." (Ingham, 2007)

Training is a good motivation point for employees. Employees who are already with the organization run a day to day routine could get bored overtime which cause demotivation. With training and development, it increased job satisfaction and morale of employees. It also increase work efficiency and increase productivity. This result in organization's finance benefits and gain to the organization. Hiring external and over-qualified candidates might bring down training cost as the candidates are already with the skills and competency. However, the person who is over-qualified might get bored as the job description is lower than the capability and experience. Training and development of over-qualified person could be a duplicate as the person already have the competency. Unless an organization has other HR planning to move the over-qualified person to other position that meet his or her competency but then that create and issue where the current position he over-qualified person is holding need recruitment again.

Morale

"External recruiting also may result in motivational problems within the organization. Existing employees may believe that they have been denied opportunities and they are more qualified thatn the outsiders who are brought into the organization at the higher levels."(Sims, 2002) It is important to keep the existing employee motivated which they contribute to overall productivity of the company. New candidates may not fit into the existing culture and may affect the morale of the existing staff. If an over qualified candidates actual capability is not as stated or assessed during the interview and resume, it will create a demotivated situation which existing staff will feel that they are more capable to fill the job instead of a perceived over-qualified candidate. Demotivation, dissatisfaction will occurred and may lead to turnover of staff. This will seriously impact an organization resource planning and organization gain. Over qualified candidate might have job satisfaction and performance problem. As job satisfaction and job performance problem are linked, an over-qualified candidate will have less job satisfaction due their competency are above the job description. After a period of time, when job satisfaction is not there it will affect performance and potential lead to turnover of the over-qualified person.

Career Advancement

Career advancement is often a motivation for existing employees and a method to promote productivity. Employees often seek career advancement within company will work harder and increase their competency which bring benefit and financial gain to an organization. Compare to an over-qualified candidate who are taking a lower qualified position, will be over knowledge in the current position and will feel their capability can take up higher level position. This lead to a problem of turnover as over-qualified staff quit the job due to boredom and career advancement that they look beyond what a company offer and outside of company. A risk of hiring over qualified candidate as they might take the opportunity as stepping stone, which they stay with an organization for short term and then seek other position. An organization will be the big loser as existing employees get demotivated and have to recruit again for the same position.

Cost

The cost of employee is not only about basic salary but including other cost for example, health care benefit, bonuses, dependent care, insurance, employee provident fund and Social Security Organization