More education != More value.

We currently have 3 PhD's that were hired in our department. No actual experience in the job/field, yet they were hired on based solely on their degree. They are doing work than an entry-level employee would be doing. What is the value for their overpaid salary? Their actual job performance? Or the piece of paper that says they went to school for X number of years?

You can have those overlooked PhD's. They are overlooked for a reason.