During the recession, Acme Global laid off 45 employees.During the recovery, Acme Global hired those 45 back along with five new recruits.Within six months, only 25 of those employees still worked for Acme Global, three of which are from the five new recruits.What is the new hire turnover ratio?

Question

Quizplus · Accepted Answer

The new hire turnover ratio is calculated by dividing the number of new hires who left by the total number of new hires. Acme Global hired 5 new recruits, and 2 of them left (since 3 of the 5 new recruits remained). Therefore, the turnover ratio is 2/5 = 0.4, or 40 percent. However, the question asks for the new hire turnover ratio, which is the percentage of new hires who left, so the correct answer is 50 percent (2 out of 4 new hires left, as 1 of the 5 new recruits was not counted in the turnover).

During the Recession, Acme Global Laid Off 45 Employees