October 2026 | Compensation Outlook

According to the latest economic estimates, Venezuela is expected to see significant economic growth in 2027, with some private forecasts projecting double-digit growth. The economy has been recovering after shrinking to just one-fifth of its size a decade ago. Alongside this growth, inflation is expected to continue declining, currency depreciation is projected to remain below inflation, and dollarization remains a possibility.

However, taking advantage of this growth requires careful preparation. In this brief article, we address two critical areas: talent and the sales function and its compensation.

1. Talent in 2027: “Extreme Retention–Extreme Attraction” Intensifies

While the country is beginning to regain economic growth, the supply of qualified talent remains more or less unchanged, as there has been no significant return of lost talent.

As a result, the battle for qualified talent—underway since January 2026—will intensify even further with the arrival of new companies and investments. The challenge will be not only to retain talent, but also to attract it to sustain growth. This requires discipline through two key elements:

1.1. Measure Total Rewards and Act on the Evidence

For nearly 25 years measuring Total Rewards globally, experience shows that the only effective way to retain talent is to measure it and act on what it reveals, achieving an effectiveness rate of over 85%.

• The problem with quick fixes: Cocktail-party solutions, clichés, copy-and-paste approaches, trendy benefits, or simply following "what the market is doing" do not work.
• The evidence-based approach: What works is having a rational, scientific basis for decision-making, especially regarding compensation investments.

1.2. Evaluate Medium-Term Incentives (MTIPs) for Management

While Short-Term Incentive Plans (STIPs) and Long-Term Incentive Plans (LTIPs) may not fit the country’s realities or organizational predictability, a Medium-Term Incentive Plan (MTIP) offers an ideal balance:

• Offers significant compensation opportunities within an 18–20 month horizon.
• Supports business growth without impacting short-term costs.
• Requires sound design and strong, flexible governance to be effective.

2. Macroeconomics Does Not Determine Your Results: Prepare Your Sales Function

Strong GDP growth does not guarantee business results. In 2026, the economy grew, yet several companies failed to capitalize on it and lost market share.

Demand will be there in 2027, but companies must review:

• Their sales organization structure.
• Commercial channels and strategic partners.
• Sales incentive plans, which evidence shows are more effective and lower-cost than many other initiatives for generating incremental revenue.

Key Risk: Without adequate preparation, you risk being overtaken by the market—you may grow, but competitors will grow faster, leaving you as an increasingly marginal competitor by the end of 2027.

Conclusion

The window of opportunity for 2027 is opening. Qualified talent does not multiply on its own, and demand is not captured through inertia. Those who decide now how to organize, measure, retain, attract, and compensate will be the ones who turn growth into results.