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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Labour Turnover
Rome Co had a staff of 2,000 at the beginning of 20X1 and owing to a series of redundancies caused by recession, 1,000 at the end of the year.Voluntary redundancy was taken by 1,500 staff at the end of june, 500 more than the company had anticipated, and these excess redundancies were immediately replaced by new joiners.
According to the answer:
500 / (2,000+1,000) / 2 *100%=33%
I confused how they calculate the replacements . I need some explaination .
Since there were 2,00 at the start of the year and 1,500 took redundancy (i.e. 1,500 left) that would mean only 500 would be left at the end of the year if they had not replaced some of them.
Since in fact there were 1,000 at the end of the year, it must mean that 500 (1,000 – 5000) of those who left were replaced.
How about this question?
Florence had a staff numbering 800 at the beginning of 20X1 and 1,200 at the end of that year.400 employess resigned on 30 June and were immediately replaced by 400 new employees on 1 July. 400 extra employees were also recruited at that time .
So according to the answer
400 / (800+1200) / 2 *100
=40%
For the replacements:
400 resigned and were replaced with 400 employees , so now we have 400 and then extra 400 employees were also recruited . so at the end of the year, we will have 800.however, there were 1200 at the end of the year , so that mean 1200-800=400 were replaced . Is it correct?
Taking on extra employees is not replacing – the maximum that can be replaced is the number that left.
If 400 resigned, then the maximum that can be replaced is 400. Any extra employees above that are not replacing anyone!
