Question

Lumina Corporation began operations this year with 4,900 employees. During the first half of the year, the company did not see any attrition. Profits were high, and the training and orientation programs were efficient. New hiring continued at a healthy pace and by mid-year, the employee strength of the company was 5,000. However, in the second half of the year, 200 employees were laid off, and no new hiring took place. The turnover rate at Lumina Corporation for this year was __________.

A) 4%
B) 2%
C) 5%
D) 4.08%

Answer 1

The turnover rate at Lumina Corporation is approximately 4.12%. However, the closest available option is 4%, which is option A.

Step-by-step explanation:

The turnover rate at Lumina Corporation for this year can be calculated by dividing the number of employees who left the company by the average number of employees during the year and then multiplying by 100 to get a percentage. In this case, 200 employees were laid off. The average number of employees is calculated by averaging the starting employee count with the ending employee count: (4900+4800)/2 = 4850. Therefore, the turnover rate is (200/4850) × 100, which equals approximately 4.12%. However, as this is not one of the options provided, and to match the possible rounding conventions that could lead to one of the listed options, the closest answer would be 4%, which is option A).