Any company that rejects a potential hire for being “overqualified” is diving inevitably towards mediocrity.
Many times in my career, I’ve had the misfortune (fortune?) of being declined for a job for the stated reason of being “overqualified”. Each time, it baffled me. I won’t reveal who some of these companies were, because I don’t wish to embarrass them, but suffice it to say that many were leaders in their respective industries. Why on Earth would a company close their doors to good people?
Some companies claim that they simply don’t have the budget to hire someone of higher skill. While this may be a valid excuse for small companies who are truly short on capital, no large company should ever voice this rationale.
After all, people are a company’s most precious resource. They are the source of all growth. Talent as it relates to growth obeys a power law: The top 5% of the people in your company really do contribute at least 50% of the value, especially in innovation-driven industries. By spending an additional 5% on compensation to get a few extra exceptional people, a company has the potential to grow 50% more quickly.
When Ken and I started Pluribo, we firmly committed ourselves to this philosophy. We engaged in serious talks with two candidates who were outstanding and possibly even “overqualified” for our immediate needs. Yet we were willing to pay them a salary far above ours and to give them outsized portions of the company’s equity. We knew that having the smartest people could cost us more in the short-term, but would multiply our chance of success in the long-run.
So when a talented person comes knocking on your door, you should bend over backwards to find a place for them in your organization. Even if you can’t find a position for them in your immediate group, shop them around to another group within your organization. If you don’t have the money to pay them at their market rate, offer them what you can. Who knows, they might love your mission enough to take it. But whatever you do, don’t let them get away.
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