That's just a negative incentive where you get punished if you don't write documentation.
It works. But it's hard to be consistent.
Let's say someone build a great feature with a lot of traction (e.g. money) but no doc.
Will you punish the team or celebrate the success?
"Sorry, your project make 20m, higher than any other projects in the company, but your doc is bad, so... you get below expectation rating this time".
There are tons of successful software with very little doc. So, my imaginary situation is very plausible. On the other hand, bad software with good doc rarely succeeds. But tbf bad software means unsuccessful software....