The right decision.

Hiring Overqualified Candidates:
This situation seems to work for both parties; the hiring manager gets a highly qualified employee, and the employee suddenly gets a paycheck (albeit, an undersized paycheck). This process should be avoided for several reasons.

1) An overqualified candidate has high expectations. Despite every nod and "mmhmm" that they say when the interviewer asks if they are "okay with grunt work," this candidate is going to get into the position and realize that it's terribly boring and far too easy.

Result: this will innevitably lead to "demotivation" and frustration.

2) A demotivated employee is worse than an underqualified employee. With proper training, an underqualified employee can become a Super Star Employee; but a demotivated employee is much more challenging to deal with.

Result: demotivated employees are contagious. If they are inefficient, other employees must take on the extra burden - leading them to be overstresssed

3) "People in their 20s are just happy to have any job." = False. The misconception that you can pay an entry level employee less and/or provide them with fewer tasks because the economy has taken a turn for the worse is dangerous, probably illegal, and really just poor management. This takes the employee for granted and fails to observe the fact that each employee should be an intrical part of the team. More importantly, this lowers the value of your team as a whole.

Result: It's difficult to get an entry level job these days, but many young people have the support of their parents and can opt to have a great unpaid internship (where they actually get to do something valuable) over having a crappy low-paying job. Think about it.

I know what you're thinking - there are Super Star Employees who do whatever task they are assigned with a smile on their face. They secretly hope and pray that someday their good work will get noticed and bite the bullet for the moment. These candidates are the ones you definitely want on your team, but they too will eventually lose motivation if their hard work is not recognized. 

Solution: There is really no reason that an entry level position can't involve both administrative work and experiential work. That is to say, why not give the new kid 75% admin work and 25% reasearch work or some other assignment that relates to his position? This will allow him to take ownership of his/her position while encouraging him/her to be more efficient with his time. You will probably witness him spending 50% (or less) of his time on Admin work because he will be getting it done much more quickly, and 50% of his time on the other duties.

Similarly, young people who feel as though their work is being unappreciated should speak to their manager. Often times, young people have a tendency to feel as though they are doing a fabulous job, when really their performance is less than optimal. While it should be the responsibility of the manager to give constructive criticism, it is far more prudent to solicit feedback. Employees should also ask for more responsibility if they feel they have too much freetime on their hands.

Finally, it's important that both sides try to empathize. Employer should realize that young adults are striving to gain experience and recognition. Employees should understand that they are the least experienced on the totem pole. They will get their turn with hard work and dedication....and if they don't, then they should find a new position at a company where they are more appreciated.

Pay attention to the 20-somethings...you never know when you will be asking them for a job....