Variable compensation is one of the most effective levers for aligning employee performance with business goals, says a report released today by the Aberdeen Group, a leading business technology market analysis and consulting firm.

The report, Enterprise Incentive Compensation 2003: Buyer's Guide for Variable and Total Compensation, states that the goals that enterprises can achieve with enterprise incentive management (EIM) software are broadening. "Businesses want compensation plans that drive results while reducing compensation maintenance and administration," says Dr. Katherine Jones, managing director of Aberdeen's Enterprise Business Applications practice and author of the report. "They are beginning to look at the use of EIM as they move to a pay-for-performance model." Successfully executed incentive-driven enterprises deliver definite benefits, such as the following:

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