A software company had 232 employees on January 1 and 248 employees on December 31. During the year, 42 employees separated: 11 were involuntary terminations and the rest resigned. Using the average of the beginning and ending headcounts, what was the company's voluntary turnover rate for the year?
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Answer: 12.9 %
- Average headcount = (232 + 248) ÷ 2 = 480 ÷ 2 = 240.
- Voluntary separations = 42 total − 11 involuntary = 31.
- Voluntary turnover rate = 31 ÷ 240 = 0.12917.
- 0.12917 × 100 = 12.917%, which rounds to 12.9%.
- Common errors: using all 42 separations gives 17.5%; dividing by the ending headcount (31 ÷ 248) gives 12.5%.
Turnover rate = separations in the period ÷ average headcount × 100; count only the separation type the question asks for.