Topgrading Talent. Why is it powerful but controversial?

Topgrading is designed to ensure that the majority of a company’s workforce is composed of high performers. By using an intensive hiring and management process, Topgrading aims to hire, develop, and retain employees who consistently deliver exceptional results.

Topgrading involves:

• Structured, Chronological Interviews: Candidates undergo a thorough interview process that covers their career from beginning to end, revealing patterns in their achievements, challenges, and growth areas.
• In-depth Reference Checks: Candidates are required to organise reference calls with former managers.
• Focus on “A Players”: Only top performers get hired and there is a continual focus  companies reduce underperformance by identifying and removing those not at the top of their game.

Why is Topgrading Controversial?

While Topgrading has transformed talent management in many organisations, some see it as a controversial approach due to:

1. High Pressure and Resource Demands

Time and Resources: For smaller HR teams or resource-constrained organisations, the administrative burden of carrying out the Topgrading process can be a heavy load to carry. Topgrading's time-consuming nature makes it challenging to implement without a considerable investment in time, energy, and staff.

Strain on Candidates: For candidates, Topgrading’s rigorous interviews can be daunting. The chronological career review can take hours, requiring candidates to recall and discuss both positive and challenging experiences in great detail. This process can make candidates feel as if they’re on trial rather than being welcomed into a potential new employer, sometimes leading to them rejecting a role.

2. Risk of Overlooking Good Candidates

Over-Emphasis on “A Players”: Only looking at the top percentile candidates can create a narrow view of what talent looks like. This approach may overlook candidates who have unique skills, high potential, or room to grow but don’t immediately meet all "A Player" criteria. By focusing exclusively on high achievers, organisations may miss out on valuable employees who could thrive with the right development.

Potential Bias: When searching for high performers, companies can inadvertently introduce biases. The Topgrading process’s strict standards may favour candidates who align with conventional success metrics, potentially leading to homogeneity and a lack of diversity in thought, background, and skills.

3. Impact on Company Culture

Competitive, High-Pressure Culture: Topgrading can foster a highly competitive work environment where only the best are valued. While this may drive performance, it can also contribute to a high-pressure, potentially unsupportive culture.

Potential for Low Morale and High Turnover: Employees who are rated as B or C Players may feel undervalued or pressured, which can lead to lower morale and even increased turnover. This environment can discourage those who thrive in more supportive settings.

4. Ethical Concerns Around Reference Checks

Invasive Reference Checking: One of the most controversial elements is the emphasis on detailed reference checks which can feel invasive.

Bias in Reference Calls: Reference calls are often a subjective process. Relying heavily on former supervisors’ opinions can be problematic, as a candidate's prior boss may not fully understand the individual’s capabilities or fit for a new role.

5. Limited Success in Some Organisations

Lack of Universal Applicability: In organisations where teamwork, collaboration, and mentorship are core values, Topgrading may not be very effective. For companies that value employee development and long-term growth, a rigid focus on hiring only the “best of the best” may not align with the overall company objective.

Short-Term Thinking: By focusing primarily on proven high performers, Topgrading can prioritise short-term results over the long-term development of employees. Critics argue that Topgrading’s intense focus on hiring only the best, discourages organisations from further investing in employees.

In Summary: Is Topgrading Right for Your Organisation?

Topgrading has earned a dedicated following among companies that value peak performance and are willing to make the investment to build a team of A Players. However, the controversy surrounding it suggests that Topgrading isn’t right for everyone. Before implementing this approach, care should be given to culture, industry, and long-term objectives.

For organisations with the resources to conduct intensive interviews and maintain a high-performance culture, Topgrading may be worth exploring. However, if your company prioritises collaboration, development, and employee well-being, a more flexible hiring approach may be a better fit.

The Balanced Approach: Hybrid Solution

Many companies today use a hybrid approach, incorporating some Topgrading elements—like in-depth interviews or detailed reference checks—without the full Topgrading process. This can allow organisations to benefit from Topgrading’s rigorous standards while maintaining a more supportive and inclusive culture.