Worked Examples · Example 11
Q.From the following data, compute the labour turnover rate under the
(a) Separation Method,
(b) Replacement Method, and
(c) Flux Method. Number of workers at the beginning of the year = 190; at the end of the year = 210. During the year, 20 workers left, and 40 new workers were engaged — of these, 20 were engaged to replace those who left and 20 were engaged for expansion.
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Start your 14-day free trial to unlock the full solution →Step 1 — Average Number of Workers:
Average = (Workers at beginning + Workers at end) ÷ 2 = (190 + 210) ÷ 2 = 200.
Step 2 — Identify the figures:
- Separations (workers who left) = 20
- Replacements (new workers engaged to replace those who left) = 20
- (The 20 workers engaged for EXPANSION are NOT replacements — they are additions, so they are excluded from the replacement figure.)
Step 3 — Apply each formula:
- Separation Method = (Separations ÷ Average Workers) × 100 = (20 ÷ 200) × 100 = 10%
- Replacement Method = (Replacements ÷ Average Workers) × 100 = (20 ÷ 200) × 100 = 10%
- Flux Method = ((Separations + Replacements) ÷ Average Workers) × 100 = ((20 + 20) ÷ 200) × 100 = (40 ÷ 200) × 100 = 20% …
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