Lumina Corporation began operations in 2011 with 4900 employees. During the first half of that year, the company did not see any attrition. Profits were high, and the training and orientation programs were efficient. New hiring continued at a healthy pace and by mid-year, the employee strength of the company was 5000. However, in the second half of that year, 200 employees were laid off, and no new hiring took place. The turnover rate at Lumina Corporation in 2011 was _____.

Question

Quizplus · Accepted Answer

The turnover rate is calculated as the number of employees who left divided by the average number of employees, multiplied by 100. Here, 200 employees were laid off, and the average number of employees was (4900 + 5000) / 2 = 4950. So, the turnover rate is (200 / 4950) * 100 = 4%.

Lumina Corporation Began Operations in 2011 with 4900 Employees