Individual Assignment I Chapter 12

Turnover Calculations

Use the following table to answer questions 1-5. Be sure to include your arithmetic so that the instructor can see how you determined your answers.

AVERAGE EMPLOYMENT LEVELS FOR SEAT OF KNOWLEDGE

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Machining/Fabricating 47 47 50 49 51 51 52 51 51 50 52 53

Shipping/Receiving 24 23 25 25 25 23 24 24 24 24 24 24

Welding 30 31 34 34 33 32 32 33 33 38 43 43

Paint/Assembly 26 30 30 30 29 36 34 33 36 37 36 35

TURNOVER

Date Department Reason

04/12 Machining/Fabricating Other Job

05/23 Machining/Fabricating Other Job

06/08 Machining/Fabricating Other Job

06/13 Machining/Fabricating No reason given

7/12 Machining/Fabricating Other Job

08/09 Machining/Fabricating Personal

08/17 Machining/Fabricating Personal

08/28 Machining/Fabricating Other Job

09/14 Machining/Fabricating Other Job

10/15 Machining/Fabricating Retired

10/15 Machining/Fabricating Temp. LF*

10/15 Machining/Fabricating Temp. LF

11/01 Machining/Fabricating Temp. LF

11/14 Machining/Fabricating Other Job

12/03 Machining/Fabricating Discharged

12/03 Machining/Fabricating Temp. LF

12/03 Machining/Fabricating Temp. LF

12/06 Machining/Fabricating Other Job

04/26 Paint/Assembly Other Job

05/18 Paint/Assembly Medical reasons

07/05 Paint/Assembly Other Job

07/27 Paint/Assembly Moving

07/31 Paint/Assembly Other Job

09/05 Paint/Assembly Other Job

04/27 Shipping/Receiving Decline in work load

05/25 Shipping/Receiving Retired

06/28 Shipping/Receiving Personal

07/12 Shipping/Receiving Discharged

07/20 Shipping/Receiving No reason given

07/23 Shipping/Receiving No reason given

08/30 Shipping/Receiving Other Job

01/12 Welding Other Job

12/03 Welding Discharged

12/03 Welding Temp. LF

12/03 Welding Temp. LF

12/03 Welding Temp. LF

12/03 Welding Temp. LF

12/17 Welding Discharged

12/17 Welding Temp. LF

12/17 Welding Temp. LF

12/17 Welding Temp. LF

12/17 Welding Temp. LF

*LF = Layoff

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. Follow the example for January to calculate the remaining 11 months.

Jan Feb Mar Apr May Jun Jul

Machining 0/47=0%

Aug Sep Oct Nov Dec

4. Calculate the annual rates of voluntary, involuntary, and total turnover.

5. Which department has the highest turnover rate?

DEPT.	AVG. EMPLOYMENT	TURNOVER	TurnOver RATE
Machining
Shipping
Welding
Paint/Assembly

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 companys 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?