Many businesses compensate their sales people not on their overall performance, but on their performance relative to their peers. This is an example of:

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The situation described is an example of a tournament, where compensation is based on performance relative to peers. This is often used to motivate salespeople to outperform their colleagues in order to receive higher rewards. It is different from piece rate pay, where compensation is based on output or performance per unit, and salary pay, where compensation is fixed regardless of performance.

Many Businesses Compensate Their Sales People Not on Their Overall