Compared to last year's results you have determined an increase in your compensation cost ratio.What does this tell you?
A) This is a sign of greater productivity.
B) Managers have inconsistently applied the new system.
C) The typical employee is earning more money.
D) Noncompensation costs have increased.

Question

Quizplus · Accepted Answer

An increase in compensation cost ratio means that the organization is spending a higher percentage of its revenue on compensating its employees. This could only happen due to an increase in the typical employee's earnings. It is important for organizations to assess their compensation cost ratio to ensure they remain competitive in the job market and retain talent.

Compared to Last Year's Results You Have Determined an Increase