Skills Mismatch: Human Resource Management Concepts and Practices

Skills mismatch has been increasingly discussed over recent years as it generates significant challenges that both businesses and public policies seek to address. Numerous terms and measures have been used to describe various situations of mismatch in the labour market, making skills mismatch a polysemic concept needing to be clarified. Our study contributes to the literature and the current debate on this important subject in several ways. This article has three objectives. Firstly, we clarify the concept of skills mismatch and identify three different situations: matching, overskilling and under-skilling. Secondly, we identify HR practices that promote the match between workers' skills and their current job. To do so, we use the 'configurational' perspective whereby a group of consistent practices implemented simultaneously influences performance. Thirdly, we discuss potential implications for small and medium-sized enterprises (SMEs) relating to skills mismatch. Our study is based on data from a research grant in which we conducted a telephone survey asking 376 human resource managers how they manage skills mismatch in their manufacturing SMEs in Quebec. Using latent class analysis and logistic regressions, our analysis reveals that seven consistent HR practices are being implemented by organizations facing over-skilling or under-skilling in order to rectify the situation. In conclusion, recommendations are made for all SMEs in Quebec.