AVERAGE EMPLOYMENT LEVELS FOR SEAT OF KNOWLEDGE Jan Feb Mar Apr May Jun Jul Aug

Question

AVERAGE EMPLOYMENT LEVELS FOR SEAT OF KNOWLEDGE

                                            Jan       Feb      Mar      Apr      May     Jun       Jul        Aug      Sep      Oct       Nov     Dec

Machining/Fabricating           47        47        50        49        51        51        52        51        51        50        52        53

Shipping/Receiving               24        23        25        25        25        23        24        24        24        24        24        24

Welding                               30        31        34        34        33        32        32        33        33        38        43        43

Paint/Assembly                     26        30        30        30        29        36        34        33        36        37        36        35

TURNOVER

Date          Department           Reason

04/12           Machining/Fabricating           Other Job

05/23           Machining/Fabricating           Other Job

06/08           Machining/Fabricating           Other Job

06/13           Machining/Fabricating           No reason given

7/12             Machining/Fabricating           Other Job

08/09           Machining/Fabricating           Personal

08/17           Machining/Fabricating           Personal

08/28           Machining/Fabricating           Other Job

09/14           Machining/Fabricating           Other Job

10/15           Machining/Fabricating           Retired

10/15           Machining/Fabricating           Temp. LF*

10/15           Machining/Fabricating           Temp. LF

11/01           Machining/Fabricating           Temp. LF

11/14           Machining/Fabricating           Other Job

12/03           Machining/Fabricating           Discharged

12/03           Machining/Fabricating           Temp. LF

12/03           Machining/Fabricating           Temp. LF

12/06           Machining/Fabricating           Other Job

04/26           Paint/Assembly                     Other Job

05/18           Paint/Assembly                     Medical reasons

07/05           Paint/Assembly                     Other Job

07/27           Paint/Assembly                     Moving

07/31           Paint/Assembly                     Other Job

09/05           Paint/Assembly                     Other Job

04/27           Shipping/Receiving               Decline in work load

05/25           Shipping/Receiving               Retired

06/28           Shipping/Receiving               Personal

07/12           Shipping/Receiving               Discharged

07/20           Shipping/Receiving               No reason given

07/23           Shipping/Receiving               No reason given

08/30           Shipping/Receiving               Other Job

01/12           Welding                               Other Job

12/03           Welding                               Discharged

12/03           Welding                               Temp. LF

12/03           Welding                               Temp. LF

12/03           Welding                               Temp. LF

12/03           Welding                               Temp. LF

12/17           Welding                               Discharged

12/17           Welding                               Temp. LF

12/17           Welding                               Temp. LF

12/17           Welding                               Temp. LF

12/17           Welding                               Temp. LF

*LF = Layoff

Calculate the annual rates of voluntary, involuntary, and total turnover.

Explanation / Answer

A) Formula for annual rate of turnover is as follows:

Annual Rate of Turnover =(Number of Turnover annually) / (Total Employement level for that year)

Total Employment level for given year can be calculated by adding the employment levels for all 12 months for each department.

Thus,

Machining/Fabrication = 47+47+50+49+51+51+52+51+51+50+52+53 = 604

Shipping/ Receiving = 24+23+25+25+25+23+24+24+24+24+24+24=289

Welding = 30+31+34+34+33+32+32+33+33+38+43+43= 416

Paint/Assembly = 26+30+30+30+29+36+34+33+36+37+36+35= 402

Total Annual Empoyement Level = 604+289+416+402 = 1711

B) Voluntary Turnover means it's an employees decision to terminate the association with the company due to several reasons like Going for other job, Medical Issues, Personal problems etc.

Hence

Voluntary Rate of Turnover =(Number of Turnover annually because of Voluntary reasons) / (Total Employement level for that year)

From the given Turnover table, Voluntary turnover can be seen from below reasons:

1. Other Job

2. Personal

3. Medical Reasons

4. Decline in work load

5. Moving

If we calculate number of turnover with these reasons then it comes 20

Hence, Voluntary Turnover Rate = 20/1711 = 0.0116 = 1.16%

C) Involuntary Turnover means employees leaving the organization due to involuntary reasons which can be any other resons than listed above in Voluntary reason list for given Turnover Table. For Example, Temp LF, Discharged, Retired etc.

If we calculate number of turnover with invountary reasons then it comes 19

Hence, Involuntary Turnover Rate = 19/1711 = 0.0111 = 1.11%

Note: Turnover due to 'No Reason Given' is not considered as voluntary/involuntary reason as its not clear whether its employee's decision to terminate the association or company has asked employee to terminate the association.

D) Total Annual Turnover can be calaculated by below formula:

Total Number of Annual Turnover= 42 ..................( Turnover due to all reasons)

Annual Rate of Turnover =(Number of Turnover annually) / (Total Employement level for that year)

Annual Rate of Turnover = 42/1711

Annual Rate of Turnover = 0.0245 = 2.45%

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