Perceived Overqualification and Employee Development: Mediating Role of Peer Social Comparison and Moderating Influence of Work-Group Inclusion

Humera Abdul Hakeem; Tariq Hameed Alvi; Samia Tariq

doi:10.58921/jobams.7.1.184

Humera Abdul Hakeem Department of Management Sciences, COMSATS University Islamabad, Lahore-Campus, Lahore, Pakistan
Tariq Hameed Alvi School of Management, Forman Christian College (A Chartered University), Lahore, Pakistan https://orcid.org/0000-0002-0001-3739
Samia Tariq Institute of Administrative Sciences, University of Punjab, Lahore, Pakistan https://orcid.org/0000-0001-6505-7655

DOI: https://doi.org/10.58921/jobams.7.1.184

Keywords: Perceived overqualification, peer social comparison, perceived investment in employee development, work-group inclusion, social cognitive career theory

Abstract

This study examines the paradoxical nature of perceived overqualification. Building on social cognitive career theory, it proposes the two dimensions of peer social comparison (abilities and opinions) as underlying mechanisms between perceived overqualification and investment in employee development. In addition, it investigates the moderating effect of work-group inclusion. The time-lagged data was collected from 202 employees working in Pakistan software development firms (a.k.a. software houses). PLS-SEM (Partial Least Squares Structural Equation Modelling) was employed to analyze it. The findings showed both dimensions of peer social comparison, i.e., abilities and opinions, to mediate the relationship between perceived overqualification and investment in employee development. Specifically, overqualified employees perceive the likelihood of investment in employee development through ability comparison. In contrast, making an opinion comparison leads them to believe that their organization didn’t invest in their development. Additionally, work-group inclusion weakens the perceived overqualification’s positive impact on peer social opinion comparison. Meanwhile, work-group inclusion could not moderate the relationship in the case of peer social ability comparison

The study's findings showed that peer social comparison has a dual mediating effect. Perceived overqualification increases the likelihood of investment in employee development through ability comparison. But when opinion comparison is made, overqualified employees’ cognition leads them to think that employer didn’t invest in employee development. Additionally, work-group inclusion moderately weakens the perceived overqualification’s positive impacts on peer social opinion comparison. Meanwhile, work-group inclusion had an insignificant positive moderation on POQ and ability comparison relationship.