U.S. firms and organizations often use sales contests and tournaments to help increase sales, generate ideas, and boost morale among sales teams. Managers may be unaware of the fact that the tournament design is a key element that will influence the overall success of the tournament.

Key findings within the report:

  • Overall, groups of individuals with similar ability outperform groups with varied ability.
  • When larger but infrequent rewards (for example, yearly) are provided, groups of individuals with similar ability outperformed groups of individuals with varied ability.
  • When smaller but frequent rewards (for example, monthly or quarterly) are provided, there is no performance difference between groups of similar or varied-ability individuals.
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