What is the labor turnover rate if 6 employees in a department of 55 were terminated and replaced?

To find the labor turnover rate, you can use the formula:

[ \text{Labor Turnover Rate} = \left( \frac{\text{Number of Separations}}{\text{Average Number of Employees}} \right) \times 100 ]

In this scenario, you have 6 employees who were terminated. The total number of employees in the department is 55. Using this information:

1. The number of separations (terminations) is 6.

2. The average number of employees is 55.

Plugging these values into the formula gives:

[ \text{Labor Turnover Rate} = \left( \frac{6}{55} \right) \times 100 = 10.91% ]

Rounding this number to the nearest whole percent yields approximately 11%. Therefore, the labor turnover rate is 11%.

This result indicates that 11% of the workforce left during the period measured, reflecting the mobility within the workforce and helping to understand the dynamics of employee retention in the department. Monitoring turnover is important for businesses as high turnover can lead to increased costs in hiring and training new staff and can also impact team cohesion and productivity.