According to new research released by Hewitt Associates, which examines the reward practices of 1,007 large U.S. employers, the past year has seen a sharp increase in employer adoption of variable pay programs. More than 90% of the organizations surveyed offer at least one type of broad-based variable pay plan, up from 80% in 2006 and just 51% in 1991.
In another interesting finding, the Hewitt study also reports that actual company spending on variable pay as a percent of payroll was 11.8% in 2007, up from 8.8% in 2003.
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