Individual Rank and Response: Survey-Based Evidence on the Effects of Rank-Based Performance Feedback

Abstract

Evidence suggests that rank-based performance feedback (RBPF) can influence workplace performance. Still, knowledge about the differential effects of RBPF on two central antecedents of employees’ performance — perceived pressure and individual goal-setting — is still sparse. We address these gaps by using a survey-based study and found that the effects of RBPF on individual goal-setting are positive for high, intermediate, and low performing individuals. However, these positive effects come with a price: Low performers who find themselves at the bottom of the ranking perceive their situation as more pressuring compared to a situation without ranking. Although these results point to a potential benefit, they also cast doubt on the implementation of rankings within the workplace.