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Hi sir,
At 31 march 20×1 an organisation had 5,400 employees. during the previous year, 750 had left the organisation, although the management had decided that only 600 needed replacing and had recruited accordingly.
What was the labour turnover rate for the year to 31 March 20X1 ?
first of all we need to figure out the AVERAGE NUMBER OF EMPLOYEES.
But what I don’t understand fully is how they calculated the number of employees at 1 april 20X0 (5400+750-600=5,550) Can you explain why they deducted 600? Can’t get it concept behind this calculation.
thanks in advance
They had 5,400 at the end of the year.
During the year they had employed 600 new people, so at the start of the year they were not there and so there were 5,400 – 600. During the year 750 had left, but they had been there at the start of the year and so at the start of the year there were 5,400 – 600 + 750.
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