A number of individuals will gladly accept opportunities regardless of the position’s level.  Unemployment has an ability to incentivize perspective.  We all need to work.

But what is the solution to the “you are overqualified” paradox?  For me, should I consider:

1. Formally renouncing my law degree to become less qualified;
   

2. Going on a bender so I only remember 3-5 years of experience;
   

3. Obtaining an Associates Degree in HR from the now defunct International Correspondence School so employers will overlook my degree from Cornell.
   

Alas, I am not sure any of those would work.  I am still cursed by 20 years of HR experience and a pesky degree from one of the premier HR programs in the country.  No matter what I could say to the employer, the real solution can come through a well structured compensation plan.

We need to assume that any employer would want someone who was overqualified as long as they could pay the same wages and address the issue of retention.   Also, we need to recognize that no candidate can comfortably present the issue early in the interview process.  HR will need to be forward thinkers and become more innovative with compensation to acquire these higher qualified candidates.   Here is a simple solution for headhunters or employers to use to lock up the over-qualified, taking advantage of the current economic conditions.

For example, take a candidate that was earning $100,000 applying for a position with a pay range of $60-90,000 where a normal relocation package is available.  The compensation package should focus on the overall dollars versus worrying about sticking to traditional structures.

$80,000 Base Compensation (on hire)

$ 20,000 Signing Bonus/Forgivable Loan:

$ 10,000 Retention Bonus/Forgivable Loan paid on one year anniversary

$        -0-  Relocation

$85,000 Base Compensation (on 2 year anniversary)

The deal is contingent on satisfactory performance and requires a three (3) year commitment from the employee.  The signing bonus and the retention bonus are structured as forgivable loans which are forgiven on the employee’s three year anniversary or due and payable immediately if the employee leaves earlier.

The candidate will spend the entire $20,000 + $10,000, partially on relocation and partially on other expenses.  They will feel a psychological and financial loyalty to the Company for the specified period.  Given the amount of money involved, the employee is locked for at least 3 years.

Recruiters should ask the hiring manager: “If I can get you someone that is abundantly qualified and lock them in for three years, would you want them even if we might lose them after three or four years if we did not have a promotion available?”  The real question is “will employers use the leverage they have with out of work candidates to improve their organizations or not?”