Challenging Question - Turnover Rate (PHR, SPHR, SHRM-CP, SHRM-SCP Exams)


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Question: The HR Manager at the Bellicose Industries was asked by the CEO to make a presentation on the high turnover rate for 2016. If the number of employees separated in 2016 was 150 and the company had 550 employees in January 2016 and 650 employees in December 2016, what is the turnover rate for the company for 2016? 
a. 25%
b. 20%
c. 12.5%
d. 13.5%

 Explanation: The turnover rate formula is the number of employees that separated from the company divided by the total number of employees. 

 We have two figures showing the total number of employees for January 2016 and December 2016. Therefore, we find the average total number by adding both figures (550+650=1200) and dividing by 2 (1200/2 = 600). 

 The number of employees that left is then divided by 600 (150/600=1/4 OR 0.25 or 25%)

 The answer is A.

 Let me know in the comments if you have any challenging question that you will like me to answer in the Weekly Challenging Question.

 I wish you success!
                          

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5 comments:

  1. Keerthana PK12 June 2018 at 10:13

    This helps Ola! Can you also explain Compa ratio?

    ReplyDelete
  2. TSL12 June 2018 at 12:22

    Definitely! I will explain that in the next post. Thanks for your comment!

    ReplyDelete
  3. Unknown12 June 2018 at 17:44

    Will you also do an exclamation on the 4/5ths rule equation?

    ReplyDelete
  4. Unknown12 June 2018 at 17:45

    Explanation*

    ReplyDelete
  5. TSL13 June 2018 at 04:43

    Hello Salandra, absolutely. We will analyze that as well from two different angles. Thanks for your comment.

    ReplyDelete

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