Top Grading
FrameworkTop Grading is a systematic approach to hiring and retaining only A-players by conducting rigorous chronological interviews and continuously evaluating team members to ensure the company isn't outgrowing key people. He emphasizes that A-players are 'drivers' who demonstrate proactive behavior, result orientation, and personal responsibility rather than just technical skills, and that building a team of A-players allows everyone to work fewer hours while achieving better results.
About Top Grading
Top Grading is a systematic approach to hiring and retaining only A-players by conducting rigorous chronological interviews and continuously evaluating team members to ensure the company isn't outgrowing key people. He emphasizes that A-players are 'drivers' who demonstrate proactive behavior, result orientation, and personal responsibility rather than just technical skills, and that building a team of A-players allows everyone to work fewer hours while achieving better results.
Research shows that 75% of hires are mis-hires, with the average mis-hire costing $1.5 million and 150 wasted hours annually, while sales rep mis-hires specifically cost an average of $583,000. Companies that successfully implement top grading see reduced work hours, increased success, and higher team satisfaction.
“Smooth talkers are typically poor executors despite their impressive communication abilities and system design skills”
— Eben Paganon Warning about the danger of being impressed by candidates who interview well but lack execution ability
Perspective
“Hire based on skills, experience, and impressive interview performance”
Hire 'drivers' who demonstrate passion, ownership mentality, and a track record of driving projects to completion, using systematic chronological interviews to verify past performance
Evidence 41
Just because you're working from home doesn't mean you can skip hiring stars and running your business professionally
Eben warns that the virtual environment can create a casual mindset that causes people to not take their business seriou
From: 7 Keys To A Virtual Businessat 17:23Smooth talkers are typically poor executors despite their impressive communication abilities and system design skills
Pagan coined the phrase 'smooth talkers usually aren't smooth doers' and describes how they excel at drawing beautiful a
From: Be Cautious Of These Personality TypesTeam up with another A-player in your company to conduct chronological interviews asking specific questions about past successes and future plans to identify high performers
Brad Smart's top grading interview guide methodology, which involves two A-players interviewing finalists together using
From: Eben Interviews Brad Smart Hiringat 27:28A players naturally gravitate toward other A players and challenging situations, while C players avoid discomfort and prefer hanging out with other low performers
Brad Smart's observation from working with companies including a former secretary of the treasury who confirmed that sen
From: Eben Interviews Brad Smart Hiringat 28:29C players are amazingly creative in undermining A players because high performers pose a threat by asking embarrassing questions in meetings and wanting to accomplish goals in half the time
Brad Smart's direct observation that C players find A players to be 'a pain in the neck' because they ask strategic ques
From: Eben Interviews Brad Smart Hiringat 30:03Top grade from the top down because C player managers will be threatened by A player employees, leading to high turnover and frustrated high performers
Brad Smart's first principle of top grading based on his research showing that A players reporting to C players creates
From: Eben Interviews Brad Smart Hiringat 30:37Evaluate key team members honestly a couple times per year to determine if the company is outgrowing them, and narrow responsibilities so they can become A players again or help them transition out
Brad Smart's specific example of breaking up marketing and sales roles when someone excels at sales but lacks strategic
From: Eben Interviews Brad Smart Hiringat 31:09The average mishire wastes 150 hours annually and costs companies $1.5 million according to research from 52 companies with $100,000 average salaries
Brad Smart's survey of 500 people and study of 52 companies showing mishires cost 15 times base salary, updated from ear
From: Eben Interviews Brad Smart Hiringat 32:16A players give you confidence about weekend deadlines by committing to do whatever it takes, while C players say they'll 'try their best' leaving you worried
Brad Smart's specific example contrasting Joe the C player who says 'I'll certainly try' versus Pete the A player who co
From: Eben Interviews Brad Smart Hiringat 34:33Companies that top grade and replace C players with A players become more successful, people have more fun, and everyone works fewer hours because they're not compensating for weak performers
Brad Smart's observations from visiting client companies over years showing reduction from 70-80 hour weeks to more norm
From: Eben Interviews Brad Smart Hiringat 35:03Questions Answered
What is a tandem top grading interview
It's an interview technique where two people interview one candidate simultaneously - one person asks questions while the other takes notes. This allows the questioner to focus on responses and probe deeper while ensuring detailed documentation.
From: How To Avoid Making A "Mis-Hire"
What percentage of hires are unsuccessful according to hiring experts?
75% of all hires are mis-hires according to Brad Smart, author of Top Grading. This means only 1 in 4 hires are actually successful.
From: The Most Dangerous Mistake You Can Make When Hiring
Common Problems This Addresses
How do I hire and retain top talent for virtual teams?
Focuses specifically on virtual team building and remote talent management strategies.
Evidence
Research shows that 75% of hires are mis-hires, with the average mis-hire costing $1.5 million and 150 wasted hours annually, while sales rep mis-hires specifically cost an average of $583,000. Companies that successfully implement top grading see reduced work hours, increased success, and higher team satisfaction.
Related Concepts
Quotes
“the first principle of top grading, you know, Evan, is top grade from the top down.”
— Brad Smart
“they won't realize that every time they left a job it was for the same reason and it was a bad one”
— Eben Pagan
“I'm surprised all the time when we we have our process of getting to know someone over time and then we do we use Brad Smart's system of doing a tandem top grading interview what comes out of these relationship building steps what we learn it's incredible”
— Eben Pagan
Source Content 13
Eben Interviews Brad Smart Hiring
How To Avoid Making A "Mis-Hire"
The Danger Of Being A Successful Entrepreneur
Eben Pagan Interviews Sir Richard Branson
How The "Godfather Of Internet Marketing" Views Business
How To Recruit People To Work For Your Business
Who To Hire For Critical Roles In Your Business
Be Cautious Of These Personality Types
What To Give Your Team So They Produce Results
The Most Dangerous Mistake You Can Make When Hiring
Offering Incentives As Motivation Could Backfire On You
7 Keys To A Virtual Business
Eben Pagan - Why We Fail With Money (\u0026 What To Do About It)