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Variable Compensation Trends: Strategies to Close Q3 2025 and Plan for 2026

By Sergio Zuniga – CEO of Blitz

As we approach the close of the third quarter of 2025, it’s a good time to assess where we stand and where we’re headed in terms of variable compensation.

 

This component is not only essential to keep teams motivated, but also to align results, growth, and sustainability. At Blitz, we believe that doing this well will be a key differentiator in 2026. I’d like to share with you what we are observing, what we are doing, and what we should anticipate.

 

Tendencias recientes en compensación variable

 

  1. Moderate salary budgets and base pay increases, with a stronger focus on variable pay
  2. Economic uncertainty as an adjustment factor
  3.  Latin America: inflation, talent mobility, and in-demand skills

 

What We’re Doing at Blitz

At Blitz, we have redefined our variable compensation structure for the final quarters of 2025 with the following approaches:

  • Establishing very clear, measurable KPIs aligned with corporate strategy (sales, retention, client growth, margin).

  • Increasing the weight of variable commission/bonuses in sales packages so that additional effort and challenges are rewarded proportionally.

  • Adjusting “bonus accelerator” mechanisms for those who exceed targets, and applying penalties (or reducing variable pay) if minimum goals are not met, as a way to reinforce accountability.

  • Incorporating semiannual performance reviews instead of only annual ones, to adapt variable components based on market conditions, inflation, and broader macroeconomic context.

 

 

Projections for 2026

Based on what we are seeing globally and what we are experiencing at Blitz, here are some of our key projections:

Variable share of total salary. In many sales and leadership role packages, we expect the variable component to represent 40–60% of total income for those who meet or exceed targets. Expected increases. Global adjustments to base salaries are expected to remain moderate (~3–4% in more stable markets), but roles with compensation strongly tied to performance could see total income (base + variable) grow by 10–25% if well structured. Diversification of metrics. Not only sales metrics: retention, customer satisfaction, operational efficiency, business margin, and innovation will all be part of variable pay calculations. Flexibility and transparency. Variable systems will be more dynamic, with frequent reporting, internal dashboards, and clear communication on how bonuses and commissions are calculated.

 

 

My Vision as CEO

 

“Variable compensation is no longer just a complement; it is one of the main drivers that fuels a performance culture. At Blitz, our challenge is not only to pay well, but to pay fairly, clearly, and in a way that motivates. We want every person to know what is expected, how performance is measured, and what they earn if they deliver extra value.” — Sergio Zuniga

 

I am convinced that those who implement solid, balanced variable compensation models aligned with corporate strategy will lead the market in 2026. At Blitz, we are preparing for exactly that.

 

Recommendations for Sales and Leadership Teams

  • Review current variable plans today: are they aligned with what matters most to the business?

  • Anticipate adverse scenarios (inflation, recession, margin pressure) and adjust variable structures with flexibility.

  • Train leaders to interpret metrics, provide frequent feedback, and leverage technology with performance dashboards.

  • Keep motivation high: recognize achievements, reward extra effort, and make results visible.

 

Thank you for your constant commitment. For us, Q3 is not only the end of a quarter, but also the prelude to a 2026 where Blitz will be synonymous with performance, innovation, and strategic growth.

Best regards,

 

Sergio Zuniga CEO, Blitz

 

Más información: marketing@blitzrocks.com

 

 

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