Answer to Question #184261 in Economics for Astha

Question

Number of workers at the beginning of the year                  8000

Number of workers at the end of the year                        9600

Number of workers left the company during the year               500

Number of workers discharged during the year                    100

Number of workers replaced due to leaving and discharge           700

Additional workers employed for expansion during the year         1500

calculate the labor turnover rate by using separation method, replacement method and flux method,

Answer 1

Separation method:

Labor turnover rate = 600/((9600 + 8000)/2)×100 = 6.82%.

Replacement method:

Labor turnover rate = 700/(9600 + 8000)/2×100 = 7.95%.

Flux method:

Labor turnover rate = (500 + 700)/((9600 + 8000)/2)×100 = 13.64%.