Red Door Interactive Case Study
Hiring and Promoting with Topgrading
Red Door Interactive is a privately held, independently owned full-service marketing agency. They operate out of two offices, with remote locations worldwide and plans to continue expanding.
Prior to Topgrading, Red Door spent nearly $100k annually on recruiters and placement fees, but still only hired 20% A Players. Topgrading allowed the company to reduce that cost to virtually nothing and hire 90% A Players. They have received multiple “Best Places to Work” awards, attracting more A Player candidates.
There is no doubt Topgrading has made Red Door Interactive more successful. With more A Players, we can achieve higher margins on our services. And clients appreciate the results driven by the high caliber of people we hire and retain. All we have to sell is people.
- Reid Carr, CEO
Red Door rolled out Topgrading methods in both their hiring and promoting practices. A third-party employee engagement survey asked Red Door employees to what extent they agreed with the statement “Decision makers promote people into roles that fit with their knowledge, skills and abilities.” Before Topgrading, 20% of the staff strongly disagreed. After, only 2% disagreed and 81% strongly agreed.
In the year after implementing Topgrading, gross profit increased 7% and operating income rose 250%. It continued to increase year after year. Red Door is able to spend their on-boarding and training budget, which is typically high in the industry, on more productive avenues. CEO Reid Carr reports that because of their culture of high performers, the company has been able to expand into new service areas more quickly and continually prove to clients that it employs quality people who consistently bring high-value ideas to their businesses.