Perceived Overqualification and Turnover Intention in Nationalised Banks: Examining the Role of Employee Wellbeing

Purpose: This research study aims to examine the relationship between perceived overqualification and turnover intention among employees with a focus on understanding the mediating role of employee wellbeing. Perceived overqualification, where employees feel that their qualifications exceed the requirements of their job, has been identified as a potential contributor to turnover intention. However, the role of employee wellbeing in this relationship remains relatively unexplored particularly in a context characterized by large supply of graduates outnumbering the demand for them. Design/Methodology/Approach: Through a quantitative research design, data is collected from clerical employees in nationalized banks in the southernmost State of India. The proposed model was tested among these where the jobs are characterized by opulent extrinsic attributes. The data analysis has been done using factor analysis, reliability and validity analysis and analysing model fit indices through structural equation modelling. Findings: The results showed that the positive association between perceived overqualification and turnover intention is mediated by employee wellbeing. The job characteristics of the nationalized job were found to ameliorate the negative perceptions associated with perceived overqualification. Originality/Value: This study brings out the significance of employee wellbeing over perceived overqualification in affecting turnover intention. Hence it is an indicator to the employers to focus on factors that can enhance employee wellbeing while framing human resource policies and thereby reducing turnover intention among them. The findings of this research can enrich human resource management strategies and interventions aimed at improving employee retention and organizational performance.