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Many external factors will contribute to these challenges, including more complex business and go-to-market models, the rise of artificial intelligence, the evolving hybrid workplace model, as well as equity and transparency initiatives.

“In 2025, the landscape of work is expected to further evolve into a hybrid model as the standard for many industries,” she said.

While culture is certainly an organizational imperative, most employers intrigued by this model will need to take a brass-tacks approach by examining their compensation strategy as well as staying ahead of potential compliance hurdles.

They can identify deals that are fit for purpose, develop the optimal deal structure, negotiate the right price and formulate a compelling integration model to realize the deal objectives and synergies.

Ultimately, whether employers opt for a hybrid model or full-time onsite schedule, flexibility in the approach is paramount for it to have the intended effect.

The intended signal is that a product was built recently, after the current wave of large language models, and that AI is embedded in the product rather than retrofitted onto it.

CCOS is often in the range of 7% to 10% of revenue for B2B companies (but will vary by industry, company size and go-to-market model).; CCOS at Forecast When sales compensation practitioners develop their annual sales compensation plans, they conduct careful financial modeling to ensure the new plan pays ~100% of the sales compensation budget when the company achieves its sales forecast.

It’s much harder to fix the implicit bias in millions of decision-makers than it is to improve a single AI model or process that helps create guardrails and ensure consistent pay.”

Why Traditional Models Are Reaching Their Limits For years, rewards structures in India evolved through accumulation.

This model operates similar to a regression model rather than a factor model as is the case in the effect-indicator model.