You won’t retain your Gen Z salespeople if you think OTE is the most important motivator

Gen Z -1920

Sales organisations are facing a critical challenge in attracting and retaining talent. Turnover continues to undermine performance, profitability, and customer continuity, and the issue is particularly acute among early‑career sellers.

Industry data highlights that sales turnover rates can reach 40%, with the average sales rep tenure sitting at just 18.1

However, this challenge is intensifying: Gen Z sellers, (who already represent over a quarter of the global workforce), are remaining in role for just over a year.2

This creates a structural contradiction. Research shows that new sales hires require 15 months to reach peak performance.3

If early‑career sellers are exiting before this point, many organisations are failing to see a return on their recruitment and onboarding investment, and are locked into a cycle of perpetual ramping.

Compounding this issue, 74% of managers report finding Gen Z more difficult to work with.4

Yet, the data suggests this perception may reflect a mismatch between what Gen Z needs and what traditional sales environments offer.

 

What Gen Z really values: development, purpose, and progression

Despite common assumptions, retaining Gen Z is not simply a matter of increasing On‑Target Earnings. A substantial and growing evidence base demonstrates that young sellers prioritise:

  • Development opportunities
  • Coaching quality
  • Meaningful work
  • A clear sense of purpose

These are said to mean far more than just raw compensation.

 

The Deloitte 2025 5 Gen Z Survey provides compelling data:

  • 86% want on‑the‑job learning
  • 89% want practical experience
  • 70% engage in skills development every week

Learning and development is a top‑three factor in deciding whether to join or remain with an employer.

 

However, current coaching and management practices are falling short. According to HubSpot (2025)6:

  • 38% of sales reps rarely or never receive coaching
  • 88% want changes in how they are coached
  • 50% specifically request coaching focused on skill development

It is no surprise, therefore, that Gen Z perceives managers as missing the mark on development. As a result, 31% intend to leave their current job within two years, citing weak development, limited purpose, or inadequate support (Deloitte, 2025).

In short, Gen Z is not hard to manage; they are simply under‑developed and under‑supported by legacy systems not designed for their expectations.

 

The solution: building a development‑centred sales culture

To retain Gen Z talent and unlock their long‑term potential, sales organisations must shift from compensation‑centred value propositions to development‑centred ecosystems. This requires strategic changes across management, coaching, recruitment, and progression.

 

1. Redesign the sales manager role around coaching

A modern sales manager must be a coach‑first, not an admin‑first, leader:

  • Provide training in coaching, feedback, and people development
  • Reduce administrative burdens to free time for regular 1:1 coaching
  • Measure managers on team development metrics, not solely revenue
  • Build a culture where feedback is frequent, specific, and constructive

 

2. Put development at the heart of recruitment

Development should be a core part of the employee value proposition:

  • Publicise structured learning pathways
  • Offer weekly development time and shadowing opportunities
  • Highlight mentoring, practical experience, and progression stories
  • Demonstrate how skills are built—not just how earnings grow

 

3. Build a continuous learning ecosystem

Gen Z expects learning to be ongoing, embedded, and hands‑on:

  • Weekly skills sprints focused on practical application
  • Peer learning, role‑play, and scenario‑based practice
  • Shadowing senior reps and cross‑functional exposure
  • Regular skill assessments tied to coaching plans

 

4. Offer transparent micro‑progression

Gen Z is motivated by visible, incremental progress:

  • Clear competency frameworks that explain how progression works
  • Small, frequent promotional steps that reward capability growth
  • Objective pathways that make advancement feel achievable
  • A shift from tenure‑based to skills‑based progression

 

Conclusion

The sales profession is entering a pivotal moment. With turnover rising and sales tenures shortening, the traditional focus on compensation is no longer sufficient to retain early‑career talent. Gen Z’s expectations are clear and consistent: they want development, meaningful work, and leaders who invest in their progression.

Organisations that embrace a development‑centred sales culture will not only attract and retain the next generation of sales talent, they will build more capable, confident, and committed sales teams.

Those who continue to rely on OTE alone will fall behind.

 

Written by Dayle Childs, Senior Lecturer in Sales and Marketing

 

 

References

1 SalesForce Research (2025)

2 Randstad (2025)

3 Rain Group (2025)

4 Resume Builder (2023)

5 Deloitte (2025)

6 Hubspot (2025)