Question

AVERAGE EMPLOYMENT LEVELS FOR SEAT OF KNOWLEDGE

  

	jan	feb	mar	apr	may	jun	jul	aug	sep	oct	nov	dec
machine/fabricating	47	47	50	49	51	51	52	51	51	50	52	53
shipping/recieving	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               Fired

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                      Fired

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                                               Fired

12/03                Welding                                               Temp. LF

12/03                Welding                                               Temp. LF

12/03                Welding                                               Temp. LF

12/03                Welding                                               Temp. LF

12/17                Welding                                               Fired

12/17                Welding                                               Temp. LF

12/17                Welding                                               Temp. LF

12/17                Welding                                               Temp. LF

12/17                Welding                                               Temp. LF

1. Calculate the average employment level for each department.

2. Calculate the average employment level for the organization.

3. Calculate the average monthly rate of turnover for the Machining Department.

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

Answer 1

Answer:

(3)

(A)

Formula for average monthly rate of turnover is as follows bellow:

Average Monthly Turnover ={ (Number of Turnover in given month) / (Average Employement level for that month) } * 100

First we will analyze the given solved example from question.

For January Month,

Number of turnover in January (Machining)= 0 ..................( From Turnover Table)

Average Employement Level(Machining) = 47 ...................( From Employment Table)

Thus Average monthly Turnover (Machining)= 0/47 = 0% .....( From the formula)

Note: For counting Number of turnover for machining, we need to keep one thing in mind. That ,we will count only those turnover which are in only Machining/Fabricating Department but not from any other department.

Thus, we can calculate Average Monthly Turnover for each Month for Machining Department

(4)

(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%