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At the start of the year a co. employed 2,000 employees. During the year 400 employees left the co..At the end of the year there were 2,200 employed. What is the Labour turnover rate?
Dear sir I know here the answer is
400/2100×100= 19%
But
If the employees at the year end are lower than the employees at the start of the year thenWill we consider the following formula ?
Employees replaced / avg no of employees
Which will be
1800/2100 x 100 = 85%?I don’t know where you are getting 1,800 from in your last line.
Suppose it was the same question as you have typed, but at the end of the year there were 1,700 employed.
If none of the leavers had been replaced then there would have been 2,000 – 400 = 1,600 at the end of the year.
The fact that there are actually 1,700 at the end of the year means that 100 of the leavers had been replaced.
The average number of employees was (2000 + 1700) / 2 = 1850
Therefore the labour turnover rate is 100/1850 x 100.
But sir why did they take
400/2100400 is the no of employees left
Instead of 400 they should have taken
The no of employees replaced which is2200-1600 = 600 employees ( replaced)
They cannot replace more than the number of employees who left.
400 left and so that is the most that can be replaced. The other 200 are not replacing anyone, they are new employees.
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