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If you're hiring then this may hold true, but it doesn't fit with my experience of contracting. Whilst the best organisations are looking to contract out to the best people, there are many companies looking for the cheapest subcontractor for short-term gains.

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Companies hiring for many roles will discard most or all candidates that fall into the top >20% bracket at the earliest possible stage because they're obviously going to be more expensive, likely to move on to another role earlier and/or likely to prove a "poor cultural fit" if they start debating decisions made by a less capable and experienced lead or manager. Some people are looking for session musicians rather than rockstars.

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