State the formula for employee turnover.

Employee turnover is the number of employees leaving during the period divided by the average number employed, multiplied by 100.

A business employs an average of 300 people and 24 leave during the year. Calculate its employee turnover.

Employee turnover is 8%, because 24 ÷ 300 × 100 = 8%.

A hotel with an average of 250 staff loses 45 of them during the year. Calculate its employee turnover.

Employee turnover is 18%, because 45 ÷ 250 × 100 = 18%.

A business with employee turnover of 12.5% employs an average of 480 people. Calculate the number who left during the year.

60 employees left, because 12.5% of 480 is 60.

What is the retention rate?

The retention rate is the percentage of employees who stay with the business for a whole period, usually a year.

OCR A-Level Business (H436) H436

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Employee turnover and retention

1 thing to know
Component 01

Overview

Recall questions on calculating employee turnover and the retention rate, the costs of staff leaving, comparing turnover with the industry average, why some turnover is healthy, and actions that reduce turnover.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is employee turnover?

Questions from this subtopic

Each one with the model answer underneath.

1
What is employee turnover?
Model answer
Employee turnover measures the proportion of a business's workforce that leaves over a period, usually a year.
2
State the formula for employee turnover.
Model answer
Employee turnover is the number of employees leaving during the period divided by the average number employed, multiplied by 100.
3
A business employs an average of 300 people and 24 leave during the year. Calculate its employee turnover.
Model answer
Employee turnover is 8%, because 24 ÷ 300 × 100 = 8%.
4
A hotel with an average of 250 staff loses 45 of them during the year. Calculate its employee turnover.
Model answer
Employee turnover is 18%, because 45 ÷ 250 × 100 = 18%.
5
A business with employee turnover of 12.5% employs an average of 480 people. Calculate the number who left during the year.
Model answer
60 employees left, because 12.5% of 480 is 60.
6
What is the retention rate?
Model answer
The retention rate is the percentage of employees who stay with the business for a whole period, usually a year.

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