Individualized Deals for Overqualified Employees: An Investigation of Supervisor Perceptions of Employee Overqualification

ABSTRACT In this study, we extend overqualification research by examining the indirect relationship between supervisor perceptions of employee overqualification and performance outcomes via task i‐deals. We predict that employees are more likely to be granted task i‐deals to the degree to which they are perceived as overqualified by their supervisors, which in turn indirectly and positively affects their task performance and citizenship behaviors. Further, we expect the relationship between supervisor‐rated overqualification and task i‐deals to be stronger when supervisor perceived peer overqualification and workgroup team orientation are lower. Analyses of multi‐wave multi‐source data from 682 employees nested in 115 workgroups in a consumer retail company in Iran provided support for our model. A second vignette‐based experimental study of 183 participants offered additional support for the directionality of relations. Theoretical and practical implications and avenues for future research are discussed.