“The pressure of envy is inevitable.”
When you encourage a more competitive environment, the high performers stand up to the challenge and thrive and prosper; and the poorest performers complain and get left behind.
The question then is if encouraging competition leads to better outcomes for the group as a whole?
If incentivising the best to get better means greater returns for all, then the extra competition was worthwhile.
And if low performers could divert their resources to higher performance activities, you will also get a better return overall.