# Calculating turnover

Calculating turnover

Answer questions 1-7 – show all work to receive partial credit. Questions 1-4 will require that
you use the data.
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 (if “no reason given,
calculate in voluntary turnover).
5. Which department has the highest turnover rate?
6. Assume the cost of advertising, selection, interviewing, and orientation is \$200 per employee
who leaves, the average cost of training is \$1000 per employee who leaves, and \$1260 is lost
in productivity for each employee who leaves. Severance pay for any discharged employee is
the equivalent of 2 weeks pay and the average annual base pay for terminated employees was
\$36,400. What is the estimated total cost of turnover for Seat of Knowledge this year? How
much does turnover cost per employee?
7. Seat of Knowledge projected an employment level of 150 employees this year. With an
unemployment tax of 3.2%, what was the company’s expected unemployment tax bill
assuming taxes are paid on the first \$10,500 earned by an employee and every employee at
the company earns more than \$10,500 per year?

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