Topgrading: How Business Owners Hire A-Players (and Stop Costly Mis-Hires)

Hiring the wrong person is one of the most expensive mistakes a business can make.

Lost time.
Lost momentum.
Team morale damage.
And the quiet frustration of knowing, deep down, that you knew something was off.

Topgrading is a proven hiring methodology designed to dramatically reduce mis-hires by identifying genuine A-Players before they join your business.

Originally developed and used inside large organisations like General Electric, Honeywell, Barclays, and Lincoln Financial, Topgrading has since been adopted by ambitious SMEs who want the same rigour without corporate bureaucracy.

This page explains what Topgrading is, how it works, and when it makes sense for business owners building or scaling a team.

What Is Topgrading?

Topgrading is a structured hiring and interviewing system created to consistently identify high-performing candidates for a specific role.

Rather than relying on CVs, gut feel, or one-hour interviews, Topgrading uses a 12-step process that combines:

Clear role scorecards (not vague job descriptions)
Deep, chronological interviews
Verification of career history
Candidate-led reference checks
Post-hire coaching and evaluation

At the end of the process, candidates are grouped into:

A Players – high performers with strong track records
B Players – capable but inconsistent or role-limited
C Players – low performers who create drag

The objective is simple:

Hire A-Players.
Do not hire chronic B or C Players.

Why Topgrading Exists (and Why Standard Hiring Fails)

Most hiring processes are broken.

CVs are exaggerated.
Interviews are rehearsed.
References are filtered.

Topgrading was built on a blunt insight:

Traditional interviews reward confidence, not competence.

The methodology assumes that some candidates will misrepresent their history.
Instead of hoping for honesty, Topgrading designs the process so dishonesty becomes uncomfortable and self-selecting.

That’s where one of its most well-known elements comes in.

The Threat of Reference Check (TORC)

Early in the Topgrading process, candidates are told something very clearly:

At the end of the process, you will be asked to arrange reference calls with your previous managers.

This is called the Threat of Reference Check (TORC).

It changes behaviour instantly.

Candidates who are inflating results, hiding failures, or lacking confidence often withdraw early.
Strong performers tend to lean in.

For business owners, TORC acts as a filter before you’ve invested weeks of time.

The Topgrading Job Scorecard (Not a Job Description)

Topgrading replaces generic job descriptions with a job scorecard.

A scorecard clearly defines:

Outcomes the role must deliver
Measurable performance standards
Required competencies
Cultural and behavioural expectations

This matters because:

You hire against outcomes, not tasks
Interviews become objective, not emotional
Post-hire performance is measurable

👉 Scaling Up People Tools

The Topgrading Interview Process (How It Actually Works)

Topgrading interviews are deliberately different from standard interviews.

1. Telephone Screening Interview

A short screening call to confirm fit, motivation, and baseline alignment.

2. Competency Interviews

Candidates are asked for specific examples across 6–8 critical competencies, such as:

Leadership
Company fit
Organisation
Peer relationships
Resourcefulness

Different interviewers assess different competencies to reduce bias.

3. The Topgrading Interview

This is the core of the methodology.

Conducted by two interviewers together
Chronological, role-by-role
Covers the entire career history
Explores successes, failures, decisions, relationships, and reasons for leaving

Candidates are asked consistent questions about:

Results achieved
Mistakes made
Manager relationships
How they believe they were rated
Why they moved on

Patterns emerge quickly.

4. Reference Call Interviews

Candidates arrange reference calls with:

Former managers
Peers
Subordinates
Customers (where relevant)

This validates what was said in interview — or exposes gaps.

The 12-Step Topgrading Methodology (High-Level Overview)

Topgrading includes steps such as:

Measuring your current mis-hire rate
Creating role scorecards
Using TORC early
Recruiting through trusted networks
Screening candidates systematically
Analysing full career history
Conducting tandem interviews
Verifying claims through references
Coaching new hires
Reviewing hiring success post-hire

It’s not about complexity.
It’s about discipline and consistency.

Does Topgrading Actually Work?

According to research examined in a Georgia State University doctoral study, companies using Topgrading saw:

Pre-Topgrading mis-hire rate: ~69%
Post-Topgrading mis-hire rate: ~10%

For business owners, that difference isn’t academic.

It shows up as:

Faster execution
Less firefighting
Stronger leadership bench
Lower emotional tax on founders

Common Criticisms of Topgrading (and What Business Owners Should Know)

Topgrading isn’t without criticism.

Some argue:

It’s overly sceptical of candidates
It can feel intense or intrusive
Contacting every previous manager isn’t always practical or lawful

These criticisms matter.

For SMEs, Topgrading should be adapted intelligently, not applied blindly.
Used well, it becomes a decision-making framework, not a legal or HR minefield.

When Topgrading Makes Sense for Business Owners

Topgrading is especially valuable when:

You’re hiring senior leaders or managers
A mis-hire would stall growth
You’ve been burned by “great interviews, poor performance”
You want repeatable hiring standards
You’re scaling beyond founder-led control

It’s less suitable for:

High-volume, low-risk roles
Temporary or transactional hiring

Topgrading vs “Gut Feel” Hiring

Gut feel isn’t useless.
It’s just unreliable on its own.

Topgrading doesn’t remove judgment — it structures it.

The result:

Fewer emotional decisions
Better alignment between role and person
Clearer expectations on both sides

How Business Owners Typically Use Topgrading

In practice, most business owners:

Apply Topgrading principles to key hires
Combine it with leadership coaching
Use scorecards and reference discipline
Avoid full corporate rigidity

👉 Book onto our Leadership Masterclass

Final Thought: Hiring Is a Leadership Decision

Topgrading works because it treats hiring as a leadership responsibility, not an admin task.

If your business growth depends on people — and it does — then how you hire determines how hard everything else feels.

Want Help Applying Topgrading Without the Corporate Baggage?

Book a call

Topgrading with Kevin Riley

Topgrading works best when it’s applied with judgment, not dogma.

That’s where Kevin Riley comes in.

Kevin is an award-winning Business Growth Specialist and former £20m business owner who has lived through the cost of poor hiring decisions — not just financially, but emotionally and operationally.

Rather than applying Topgrading as a rigid HR process, Kevin works with business owners to:

Apply Topgrading where the risk justifies the rigour
Build role scorecards that reflect real-world accountability
Combine structured interviewing with leadership judgment
Avoid toxic or legally risky misuse of reference checks
Align hiring decisions with long-term business strategy

The goal isn’t to build a perfect recruitment machine.
It’s to build teams that make the business easier to run.

What is Topgrading in simple terms?

Topgrading is a structured hiring method designed to identify high-performing candidates by looking deeply at their real career history, not just how well they interview.

It replaces vague job descriptions and surface-level interviews with clear role scorecards, chronological interviews, and verified references.

Topgrading FAQS

Is Topgrading only for large corporations?

No.

While Topgrading was originally developed inside large organisations like GE, it is increasingly used by SMEs — particularly for senior hires where a mis-hire would stall growth.

Most business owners adapt the methodology rather than applying all 12 steps rigidly.

What is an “A Player” in Topgrading?

An A Player is someone who has consistently performed at a high level in similar roles, demonstrated accountability for results, and shown alignment with the role and company culture.

Topgrading aims to identify these individuals before hiring, rather than discovering performance gaps later.

What is the Threat of Reference Check (TORC)?

TORC means candidates are told early that they will be asked to arrange reference calls with previous managers.

This encourages honesty and often causes unsuitable candidates to self-select out of the process.

When used properly, it saves time and reduces mis-hires.

Is Topgrading legal in the UK?

Topgrading principles are legal, but must be applied carefully.

Blindly contacting every previous manager without consent can create legal and ethical issues.
This is why experienced guidance matters.

Kevin Riley helps business owners apply Topgrading sensibly and lawfully, without turning hiring into a legal risk.

Does Topgrading replace leadership judgment?

No — it strengthens it.

Topgrading provides structure and evidence so business owners can make better decisions, not automated ones.

Hiring remains a leadership responsibility.

When does Topgrading make the most sense?

Topgrading is most effective when:

Hiring managers or senior leaders
Scaling beyond founder-led control
Past mis-hires have slowed growth
Cultural fit matters as much as skill

It’s less useful for low-risk or temporary roles.

Can Topgrading be combined with coaching?

Yes — and it often should be.

Topgrading works best when paired with:

Leadership coaching
Clear accountability frameworks
Ongoing performance alignment

This ensures strong hires stay strong performers.

What Is Topgrading? A Hiring Method for Building A-Players | Kevin Riley