Last post February 23, 2011 04:55 AM by latika. 1 repiles.
Hi all, Can someone tell me the formula for calculating the turnover ratio with respect to labour? Thanks in advance.
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
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?
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.
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,