Rethinking Underemployment and Overqualification in Organizations: The Not So Ugly Truth

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.