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A company had 4,000 staff at the beginning of 20X8. During the year,
there was a major restructuring of the company and 1,500 staff were
made redundant and 400 staff left the company to work for one of the
company’s main competitors. 400 new staff joined the company in the
year to replace those who went to work for the competitor.
Required:
Calculate the labour turnover rate for 20X8.the answer says: Labour turnover rate =
400/3,250 × 100% = 12.3%i dont understand why is it 400? plus can u plz tell me the exact formula beacause somehwere its diff? can u please explain me
We always take the number of employees who left the company who were then replaced by new employees. Here a total of 1,400 left the company but only 400 of them were replaced with new employees.
This is all explained, with examples, in my free lectures on accounting for labour.
The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.,
SO THE FORMULA IS NUMBER OF EMPLOYESS WHO WERE REPLACED/ AVERAGE NO OF EMPLOYEES?
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