Coaching experts have highlighted few reasons. In general, the overqualified employee is fundamentally less likely to be happy with their position. As a consequence:

(1) They will likely leave at the first opportunity.

(2) If they take the job, it's because they couldn't find anything better. This can lead to a certain resentment of their situation. From the company's point of view, the best employees are the ones that feel grateful for the opportunity to work there.

(3) They will be more likely to get bored with the work.

(4) They are more likely to challenge authority.

(5) At some point they may change their mind about taking the pay-cut and start asking for more money.

(6) Some companies are suspicious of their motivations when they are aiming for a lower position. Why are they applying for this job? Are they trying to learn about the company and possibly steal trade secrets?

(7) Many managers will feel intimidated/threatened by someone who is possibly more qualified than themselves, and will be reluctant to hire someone who might be able to take their job.

Corporations both large and small are always in need of innovative minds to work through their clients’ problems, but only the large ones like Accenture, Bain, BCG, Deloitte, and Mckinsey will draw deeply from the supply of business, economics and finance PhDs. The reasons are because these smart people have undergone rigorous research programs and there is an increase in demand from innovative firms for studying the markets to find advantages and inefficiencies.

Blofeld might have some invaluable pieces of advice to offer because he was a salaryman with accounting background who came from the intellectually stimulating corporate world.