You just learned how to evaluate pay compression systems by the following metrics: Total Compensation Expense Factor, Pay-for-Performance Expense Factor, Total Compensation Revenue Factor, and Pay-for-Performance Revenue. In the Practice sheet of the Excel workbook, you will find a new set of compensation, operating, and revenue data for a different company. Again, you will focus on compensation expenses associated with nonproduction employees.

Do and respond to the following:

First, compute the total compensation expense factors and total compensation revenue factors across 3 years.

Second, compute the pay-for-performance expense factors and pay-for-performance revenue factors across the same 3 years.

Third, What trends did you notice? What implications do they have?

	2016	2017	2018
Compensation Expenses (Base & Variable Pay):	38.5	41.7	40.6
Pay-for-Performance Expenses:	7.5	10.3	9.9
Benefits Expenses:	18.3	19.9	19.3
Total Operating Expenses:	65.6	72.7	74.0
Total Revenue:	199.1	191.9	178.7