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Illustration 5- At 1 Jan. a company employed 3,641 employees and at 31 Dec employees numbers were 3,735. During the year 624 employees choose to leave the company.
Open tuition method -> At beginning there were 3,641 employees and 624 left then 3641-624=3017 employees should be left in end but its 3735 . so 3735-3017=718 employees should be replaced employees, hence the labour turn over ratio is = 718/3688 x 100 = 19.5 %.
But Solved in book is like this – 624 employes = no. of leavers who require replacement . so, the ratio is = 624/3688×100 = 16.9 %.
At starting I thought , it the language difference . in book its written “employees shoose to leave the company ” – they were not made redundant so, we will take 624 as replacement . but when I give your 5 questions test – In second question the language was same and when I referred to the lecture the language was no different. so, please tell me , i amreally confused. Its not the problem with question in Kaplan because i also tried another question and the solution was like previous one – Left employees = replace employees.
You have misunderstood the lecture – replacing employees means replacing employees who have left.
So the maximum they can replace is the number who had left.
In your example from Kaplan 624 left, so of the 718 new employees only 624 were replacing the leavers (the rest were extra employees).
In the second test question 45 left. If they had replaced all of them then there would have been 80 at the end of the year. However at the end of the year there were only 60 employees and therefore they have only replaced 25 of the leavers.
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