What a mismatch: Right individuals are working for wrong companies and Right companies are employing 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