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Hello
Could you please check if I have answered the question correctly? When calculation the ratio labour turnover I am not sure if I have to use the number of the employee who left the company and need to be replaced (624) or the one that should be replaced (530)
At 1 January a company employed 3641 employees and at 31 December employee numbers were 3735. During the year 624 employees chose to leave the company. What was the labour turnover rate for the year?
Working:
530/3688*100 = 14.37%
3735-3641-634= 530 (employees need to be replaced)
3641+3735/2 = 3688 (average per year)Thanks
GabbiYou should have used 624 replaced (everything else is OK).
It is not how many needs to be replace or should be replace – it is how many actually were replaced.
So…..since the total number of employees increased over the year, it means that all 624 who left were replaced (and more extra were employed as well).
If, however, the number of employees had fallen over the year, then it would mean that not all 624 were replaced. (Just suppose that at the end of the year there were 3,500 employees. In that case 624 left and 483 were employed (3500 – (3641 – 624)).
So then the number replaced would simply be 482)Dear Mr Moffat
Thank you very much for the explanation. This make everything more clear.
I really appreciate your help.Many thanks
Gabbi
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