Turnover rates are calculated on a regular basis to compare specific units such as department, divisions and work groups.
Number of separations during the month = 25
Total number of employees at mid month = 500
Turnover rate = (Number of separations during the month/ Total number of employees at mid month) * 100 = (25/500) * 100 = 5%
If there were 25 separations during a month, 5 of which were US, and the total number of employees at mid-month (M) was 500, the turnover rate would be 5%.
Answer is b. 5%
Another method of computing turnover rate is that reflects only avoidable separations where the turnover rate will be 4% [(25-5)/ 500 * 100].
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