Too much education is bad
for corporations for a multitude of reasons, but having access to an
educated workforce is always good just in case the need arises.
Department managers and human resource officials know that hiring
people with too much education sometimes leads to
more disadvantages than benefits for an employer. Moreover, since
businesses are usually in existence for the primary purpose of
making employees and employers money, obstacles to that purpose
including too much education are to be avoided.
Over-qualification
Overqualified
employees get bored, unhappy, annoyed and can disrupt workplace
equilibrium with subversive manipulation, underhanded deeds and
misplaced professional ambition to the detriment of peers. Such
individuals are better off not hired by some employers because they
are simply not worth the effort, trouble, and time. This is not to
say less educated employees are not capable of the same things.
Rather, according to the Harvard Business Review, there is an
increased possibility that employee curation decisions will turn bad
if more overqualified employees are hired.
Cost
According
to Patricia Schaefer of Business Know How, the Family and Work
Institute cites lower education as the dominant factor in lower
employee earnings. What if those employees can also do the same job
for less though? In some cases including outsourcing, if less
educated people can do the same job for a net gain, it is more cost
effective to hire them. For example, hiring a 30K per year employee
with a Bachelor of Arts with a net profit margin of 21 percent is
better than keeping 45K per year employee with a Master of Science.
This is especially the case if revenue rises less than the amount
needed to offset the higher costs of hiring a more educated employee.
Turnover
Employees
with a lot of education, or higher earnings expectations are less
likely to want to stick around a business. The Center for American Progress states employee turnover costs companies
because they have to pay for things such as lost productivity in between hires,
training expenses for new hires and recruitment costs. If an educated
new hire is obviously seeking upward mobility and there is no room in
an organization to accommodate that, then hiring a potentially less
ambitious or less educated employee is sometimes the solution.
Competition
Educated
people know a lot and that is a potential threat to co-workers and
managers. In a report published by the InterAmerican DevelopmentBank, it was found that younger employees - some of whom are more
educated than those making hiring decisions – are discriminated
against in order to preserve the job security of older employees. New
hires that have too good a grasp on what is going on, and that are
able to out-think both their superiors and colleagues are a job
security hazard and put the beloved status quo at risk by rocking the
corporate boat.
Insubordination
The
possibility of insubordination is also a potential consequence of
hiring an employee with more education than is necessary to work a
job. Employees that are overqualified are more likely to become
frustrated or disgusted by their work situation thereby raising the
probability of an insubordinate act. In "Taming the Difficult Employee", Nancy Aldrich states insubordination arises from "lack of control" and "rewarding negative behavior". Using similar reasoning, being rewarded for getting an education is a negative reward when that reward is a job that is too restrictive and takes away from an employee's sense of control.
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