Lumina Inc. had 4,900 employees at the beginning of 2014. During the first half of the year, the company had no attrition. The company's profits were high, and its training and orientation programs were efficient. It continued to hire at a healthy pace and had 5,000 employees at midyear. However, in the second half of the year, 200 employees were laid off and no new hiring took place. What is Lumina's turnover rate for 2014

Question

Alisha Marks

Business

1 March, 00:40

Lumina Inc. had 4,900 employees at the beginning of 2014. During the first half of the year, the company had no attrition. The company's profits were high, and its training and orientation programs were efficient. It continued to hire at a healthy pace and had 5,000 employees at midyear. However, in the second half of the year, 200 employees were laid off and no new hiring took place. What is Lumina's turnover rate for 2014

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Nathanial Sharp · Answer 1

4 %

Explanation:

Employee turnover rate describes the rate at which employees leave a company, either voluntary or involuntary. It includes employees that separate from the organization only, but not internal movements.

The formula for calculating employee turnover is

Turnover rate = Employees separated x 100

The average number of employees

The average number of employees = Beginning number + Ending number.

2

For Lumina Inc. average number of employees

= 4900 + 5000/2

=4950

Employee turnover = 200/4950 x 100

=4 %