how can you tell if an overqualified applicant is right for the job?

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A reader writes:

I’m a young professional working at a nonprofit. I manage our most entry-level position, a basic administrative position that has been categorized at times as both an administrative assistant or office manager. This position recently became vacant after an employee of one year, Fergus, decided to leave. We knew Fergus was highly overqualified for the position, but he said that he was looking or a role with less responsibility due to family issues, so we hired him. During his employment, he grew increasingly disgruntled with our CEO

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