Sales leaders tend to have a strong opinion on the value and use of incentives. Their views are based on firsthand experiences and beliefs, and are often unconscious. As a result, their approach to sales compensation design can be biased toward past experiences, dismissing a broad range of options and philosophies available to drive the desired behaviour.

For example, most organizations believe salespeople possess a binary motivation to maximise their earning potential. However, other companies are purpose-driven and reward their sales teams based on group performance. We frequently hear how the millennial is “purpose-driven”, but the key to any incentive plan is to define the word “purpose”.

I recently asked a millennial sales leader if h...