For Business

Insight

What a Mismatch

Right Individuals are working for wrong companies and Right companies are hiring wrong individuals

Why individuals get stuck in an unproductive job:

1. OECD Research (2021) found that nearly40% of workers in developed economies are mismatched to their jobs—either

2. McKinsey (2022) reported that 87% of companies worldwide face skill gaps, yet many still hire mismatched candidates due to rushed decisions.

3. Harvard Business Review (2019) found that 80% of turnover is due to bad hiring decisions, often caused by Over-reliance on resumes rather than skills.

4. LinkedIn Global Talent Trends Report (2023) showed that 63% of hiring managers admit to hiring the wrong person because they prioritized "cultural fit" over competence.

Several studies and research papers in organizational psychology, labor economics, and HR management support the phenomenon of talent-company mismatches. Mismatches are systemic—caused by flawed hiring, biases, and market inefficiencies. Both employees and companies lose—lower productivity, higher turnover, and wasted potential. Solutions exist—skills-based hiring, better employer branding, and AI-driven matching tools.

Psychological & Behavioral Reasons:

Daniel Kahneman’s research (Nobel Prize in Economics, 2002) shows that hiring managers rely on cognitive biases (like the "halo effect") rather than objective assessments. Gartner, The Secret to Hiring Success (2022) found that only 29% of new hires are high performers because companies fail to assess role alignment properly.

India is the world's fastest-growing major economy, but its employment story tells a different tale. Even as university degrees become more common, suitable jobs remain scarce. Why do so many Indians remain stuck in unproductive roles—and what can be done to break this cycle?

Why the Right Individuals Work for the Wrong Companies

1. Limited Opportunities: Skilled professionals may settle for mismatched jobs due to financial pressures, lack of openings in their ideal field, or geographic constraints.

2. Misleading Job Descriptions: Companies sometimes oversell roles (e.g., calling a repetitive job "dynamic and innovative"), leading to disillusionment after hiring.

3. Cultural Misfit Post-Hiring: A candidate may seem like a good fit on paper but clash with the company’s work culture, leadership style, or values over time.

4. Lack of Self-Awareness: Some individuals don’t realize their true strengths/passions until they’re already in a role that doesn’t suit them.

5. Recruitment Bias: Hiring managers may favor credentials (degrees, big-name past employers) over actual skills or cultural fit, pushing talented people into unsuitable roles.

6. Economic Survival: People often take jobs they’re overqualified for (or disinterested in) just to pay bills, especially in competitive or recession-hit markets.

Why the Right Companies Hire the Wrong Individuals

1. Rushed Hiring Decisions: Startups and growing companies may prioritize speed over quality, leading to bad hires.

2. Overemphasis on "Culture Fit": Some firms hire for personality (e.g., "likeable" or "similar to the team") rather than skills, leading to incompetent but friendly employees.

3. Poor Employer Branding: Great companies may fail to attract top talent if they don’t market their culture, mission, or benefits effectively.

4. Unrealistic Job Requirements: Listing excessive qualifications (e.g., "10+ years in a 5-year-old tech") scares away good candidates, leaving only overconfident but unqualified applicants.

5. Referral Bias: Over-reliance on employee referrals can lead to homogeneity (hiring friends/connections rather than the best talent).

6. Interview Flaws: Some companies judge candidates based on arbitrary metrics (e.g., tough puzzle questions) rather than real job competence.

Implication:

There's a massive disconnect between education, skills, and market demand—people end up in mismatched, low-productivity jobs.

“India’s job problem isn’t just about unemployment—it’s about underemployment. Millions are working hard, but not productively.” Prof. Amit Basole, Director, Centre for Sustainable Employment, Azim Premji University

Previous Stories

Transforming from Employee

To Become Entrepreneur

Recent trends show a surge in people leaving their jobs to start their own businesses.

Main reasons:

• Burnout

• Lack of job satisfaction

• Lack of control on their own career

• Desire for working hour Flexibility.

  STATISTICS

• The percentage of self-employed individuals in India's workforce has increased to 58.4 per cent in 2023-24 from 52.2 per cent in 2017-18, indicating a rise in entrepreneurial activity and inclination towards flexible work options, the Economic Survey 2024-25 has said.

• "The proportion of self-employed workers in the workforce has risen from 52.2 per cent in 2017-18 to 58.4 per cent in 2023-24. The shift reflects growing entrepreneurial activity and a preference for flexible work arrangements," Economic survey noted.

• Urban areas also witnessed a positive shift, with "own account workers/employers" increasing from 23.7 per cent to 28.5 per cent, according to the survey.

Why this shift from jobs to Business?

1. Difficulty in maintaining their existing life style: Inflation and ever-increasing cost of living triggers PANIC reaction amongst the employees. With extremely limited INCREMENT in salary, which is not proportionate to inflation, majority of those who are engage in jobs, are finding extremely difficult to even maintain their existing life style, forget about growth.

2. Less Opportunities to grow in job: To get the INCREAMENT in the job is not in the control of the employee, irrespective of his efforts, calibre and competency. The opportunity to scale up earnings and potentially achieve higher income levels is totally absent in majority of jobs.

3. Revenge Quitting: Rude behaviour of the those who are in higher position, Toxic work culture, open favouritism, discrimination, not getting recognition for the work done and above all feeling trapped. This trend, where employees leave their jobs due to frustration or feeling undervalued, is also on the rise, leading some to pursue alternative career paths, including entrepreneurship.

4. Higher Earning Potential and wealth creation: Entrepreneurship generally offers higher earning potential compared to traditional employment. Entrepreneurship allows for potentially unlimited earnings and wealth accumulation based on business success. Entrepreneurs can scale their businesses and potentially earn far more than they would as employees. The profits earned by the business go directly to the entrepreneur.

5. Government Initiatives Supporting Entrepreneurship: Start-ups India Launched promote and nurture promote and nurture start-ups, this initiative offers various benefits, including tax exemptions, funding support, and simplified regulatory processes. : Launched to promote and nurture start-ups, this initiative offers various benefits, including tax exemptions, funding support, and simplified regulatory processes.

Series: From Employee to Entrepreneur

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From job to starting own business