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Purpose

Building on the social capital theory of career success (SCT), this paper aims to explore how and when newcomers’ overqualifications can grant them positions as informal leaders within the workgroup over time.

Design/methodology/approach

The model was tested using a social relations modeling analysis conducted using a three-wave survey with 242 newcomers in Macau.

Findings

The results support the view that relatively qualified newcomers can enjoy social capital advantages in workgroup networks. Newcomers’ desired qualifications can grant them positions as informal leaders through leader–member exchange and advice network centrality. These relationships are moderated by relational dissimilarity, such that the benefits of being relatively overqualified will be weakened when relational dissimilarity is high (vs. low).

Practical implications

When assisting overqualified newcomers in integrating into their teams, practitioners shall be aware of the time and resources that new hires require for adjustment, especially when significant newcomer–veteran relational dissimilarity exists.

Originality/value

The present paper challenges the overtly detrimental outcomes of overqualification by highlighting the positive relational implications of being relatively overqualified.

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