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

Quizplus · Accepted Answer

The turnover rate is calculated by dividing the number of employees who left the company by the average number of employees during the year. In this case, 200 employees left the company and the average number of employees was (4,900 + 5,000) / 2 = 4,950. Therefore, the turnover rate is 200 / 4,950 = 4%.