More than six in 10 Canadian hiring managers say their company typically considers overqualified candidates, but concerns about retention and motivation often prevent them from making the hire, according to a new survey from Express Employment Professionals and The Harris Poll.
“Overqualified candidates represent a chance to secure top talent in today’s market,” said Bob Funk Jr., CEO, president and chairman of Express Employment International. “The key is to focus on skills-based hiring, which widens the talent pool by looking beyond résumés and degrees and makes the best use of a candidate’s abilities and ambition.”
Funk noted that without proper alignment between a candidate’s abilities and the role, the risk of a quick exit is real.
The survey of 500 Canadian hiring decision-makers, conducted in June 2025, found 61 per cent of companies consider overqualified candidates. However, 79 per cent worry these candidates will leave as soon as a better opportunity arises, and 77 per cent believe they struggle to stay motivated in lower-level roles.
Nearly two-thirds of companies (63 per cent) say they would rather train someone new than risk an overqualified hire becoming disengaged or leaving.
Benefits versus risks
Hiring managers who consider overqualified candidates cite several advantages. Nearly half (46 per cent) believe they have more confidence on the job, while 43 per cent appreciate that they require little to no training.
Other benefits include mentoring junior employees (41 per cent), better decision-making skills (39 per cent), and higher productivity (38 per cent).
Despite these advantages, retention concerns appear to outweigh the benefits for many employers.
Job seekers feel disadvantaged
The survey of 503 Canadian job seekers, also conducted in June 2025, reveals frustration on the other side of the hiring process. Nearly six in 10 job seekers (59 per cent) say it’s impossible to compete against overqualified candidates, and 64 per cent believe companies are more likely to hire an overqualified applicant than someone with only entry-level experience.
Despite these concerns, 89 per cent of job seekers believe it is appropriate to apply for jobs they are overqualified for, and 64 per cent have done so in the past.
The top reason job seekers apply for positions below their qualification level is financial need (58 per cent), followed by better work-life balance (53 per cent) and passion for the industry (35 per cent). Economic uncertainty is driving 30 per cent of job seekers to apply for jobs they are overqualified for.
Younger workers feel more pressure
Gen Z and millennial job seekers are significantly more likely than Gen X to believe it’s impossible to compete against overqualified candidates (62 per cent and 68 per cent versus 46 per cent). They are also more likely to think companies favour overqualified candidates (66 per cent and 72 per cent versus 53 per cent).
The Job Insights survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals from June 2 to 18, 2025. The Job Seeker Report was conducted online within Canada by The Harris Poll from June 12 to 27, 2025.
