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Sir,
Start of the year: 100
Left during year: 40
End of the year : 70
Workers replaced ought to be equal to 10 since 100-40= 60 but there are 70 employees so 10 employees were replaced..
But is it necessary that they are been replaced what if new opportunities are created or increase in production or business is going through expansion?40 left during the year, so if they had all been replaced there would still be 100 at the end of the year.
Given that there were only 70 employees at the end of the year then only 10 of the leavers had been replaced.
If the company had been expanding then they would have replaced all 40 of those that had left and would have employed new people as well. The fact that at the beginning of the year they needed 100 employees but at the end of the year they only needed 70 employees surely suggests that the company is declining rather than expanding 🙂
But sir,
Is it necessary that there are 70 employees rather 60 which means that 10 are REPLACED. I mean what if it isn’t replacement rather new recruitment for another department or its new recruitment for new product.
Sir, So there can be several factors for new recruitment rather than replacement..So shall we always presume (until not mentioned) that the difference is due to replacement solely and not something other factors like new recruitment.
Replacing employees who leave will need new recruitment.
It is completely irrelevant what jobs the employees are doing. If the business is continuing at its current level it will simply replace any who leave and not need to empty any extra. If the are expanding then they will replace those who leave and recruit more in addition.
Do not forget the purpose of measuring the replacement ratio. If it is high, then employees are leaving who are needed – otherwise they would not be replaced. This suggests that either we are not keeping our employees ‘happy’ (otherwise they wouldn’t leave) or that we are recruiting badly.
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