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But then 4 is the best, and you can't be the best, so now you only need 3, but then 3 is the best...

The problem w/ ranking people (in general) is that it embodies this idea of "the best". At SO, it appears this ranking system is internalized by the employees who are consistently ranked below "the best" (5). So why bother trying to be "the best", when it's made to seem so impossible by the ranking system? Ranking is demoralizing.

But if someone happens to be the best and being the best is valuable then why not reward them?