Function

Average Performance Rating $(15)$

Average Merit Increase $(5\%$ of budget$)(\%)$

Grade Inflation $(\%)$

Compa Ratio $(\%)$

Annual Incentive $(\%$ of Target$)$

Finance $3\mathrm{.}56\mathrm{.}81112085$

Operations $4\mathrm{.}15\mathrm{.}0695103$

Marketing $4\mathrm{.}92\mathrm{.}71\mathrm{.}970110$

You are the director of compensation at a major Internet company. As part of the strategy of your unit, you developed a compensation scorecard. The results are shown in the summary table. Based on this information, what can you conclude about the finance function?

The finance function is overstaffed.

The compa ratio suggests that finance employee salaries are too low.

The average merit increase for employees is too high $($actually over budget$)$ given its average performance rating.

The finance department needs to reduce operating costs.