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The document discusses trends in variable compensation plans for salaried employees over the past 20 years. It finds that variable pay awards have increased 72% as a percentage of payroll. While merit increases have remained steady, the types of variable compensation plans have expanded. Plans now more commonly include business incentives, cash profit sharing, gain sharing, productivity plans, and special recognition awards. The document was produced by Aon Hewitt to provide general information on trends in variable compensation.





