Tournament Incentive Heterogeneity by Worker Rank and Horizon

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In Simple Words

Think of a contest where only the top runners on the track and those nearing the finish line run at top speed, while runners far behind or at the start of a long marathon pace themselves because the prize feels out of reach or too far off.

Health workers grouped by initial rank

Ranked fourth or lower
Uncertain gain of 0.965 visits
Ranked in the top three
Gain of 2.348 visits

Each gain compares promotion rules within rank. Six-month visits at ten-month follow-up; difference p=.034. Lower-rank gain uncertain at p<.10 only.

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Research question

Rank-order promotion tournaments generate uneven productivity responses across an organization if low-performing workers or employees facing distant promotion horizons perceive winning as impossible or remote.

Participants

N = 1,830 to 1,966 Community Health Workers across 372 Peripheral Health Units in Sierra Leone, categorized by baseline supervisor-reported performance rank and supervisor retirement timeline.

Study Design

Heterogeneity analysis within a randomized field experiment, measuring worker productivity shifts across performance rank tiers (top 3 vs. lower) and supervisor retirement proximity (within 5 years vs. longer).

Results

Meritocratic promotions boosted household visits by 38% (+2.348 visits; p < 0.01) for high-ranked workers versus +0.965 for low-ranked workers, and by 45% (+3.476 visits; p < 0.01) for workers expecting a supervisor retirement within 5 years versus +1.260 for distant horizons.

Takeaway

Structure promotion tournaments with intermediate progression tiers or targeted incentives for workers outside immediate promotion eligibility windows to maintain broad-based workforce effort.

Source and citation

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Plain-English glossary

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Baseline

The starting measurements in a study. Researchers use these to compare what participants were like at the start with what happens later.

ExampleBefore a training programme starts, researchers measure workers’ earnings. That first measurement is the baseline.

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