Turnover Ratio ?

Human Resources » Attrition and Retention

	Message From: girdhar gopal	Total Posts: 17	Join Date: 18/04/2009
Rank: Executive	Post Date: 23/02/2011 04:39:07	Points: 85	Location: India

Hi all,

Can someone tell me the formula for calculating the turnover ratio with respect to labour?
Thanks in advance.

	Message From: michael_co	Total Posts: 10	Join Date: 18/04/2009
Rank: Beginner	Post Date: 23/02/2011 04:41:52	Points: 50	Location: India

The formula is number of people leaving in the numerator and the number of people in the organisation as the denominator. This can be a percentage

	Message From: sanjibani	Total Posts: 14	Join Date: 18/04/2009
Rank: Executive	Post Date: 23/02/2011 04:46:44	Points: 70	Location: India

Infact, I was also looking for a similar answer. For calulating annual turnover, what is the denominator? Is it average no of employees in 12 months or is it the no. of employees as on last date? What is the standard practice so that there can be an apple to apple comparison?

	Message From: srini	Total Posts: 120	Join Date: 18/04/2009
Rank: Leader	Post Date: 23/02/2011 04:48:04	Points: 600	Location: India

Dear All,

i think it depends on the need, if it's a presentation you would like to come out of looking good, then you would take the lowest monthly figure during the entire 12 month period. But if you want to take a hard look, then i guess the highest total during the 12 month period would end up as denominator. Your choice really. Or you could take a weighted average on a monthly basis.

Cheers,

Srini

	Message From: prabhakar rao	Total Posts: 17	Join Date: 18/04/2009
Rank: Executive	Post Date: 23/02/2011 04:49:56	Points: 85	Location: India

Dear All,

It is as follows :

No of resignations/seperation during the period under consideration
____________________________________________________* 100
(Opening balance+closing balance)/2

Use this formula if you want to project realistic numbers.

However, if you want to show it less, use only opening balance if the manpower movement is upward during the period under consideration.

If you want to show it more, then use closing balance.

Cheers,

Prabhakar

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