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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.

The approach and lessons are applicable to companies across other verticals, especially those with high recurring-revenue models such as most tech companies with XaaS models.

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.

It could behoove some public companies to borrow the structural differences from private equity-owned companies and incorporate them into their own pay models.

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

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.

Model Performance Scenarios Scenario modeling is vital for stress-testing sales compensation plans and preparing for a range of market conditions.

Once the relationships between features and the outcomes have been estimated by the model on the training sample, that model is used to make out-of-sample predictions in the hold-out sample.