Computations
Additional Calculations
This percentage is computed by dividing the number of people terminated and replaced in an accounting period by the average number of personnel employed by the dealership during the period. If the accounting period is less than twelve months, it is desirable to annualize the percentage; for instance, if the rate for a three-month period is 6%, the annualized turnover rate would be 24%.
Example:
|
Total personnel, beginning of period |
40 |
|
Total personnel, end of period |
36 |
|
Total |
76 |
|
Total average personnel (total above divided by 2) |
38 |
|
Then, |
|
|
Divide * Lower of Personnel Hired or Terminated: |
10 |
|
|
/ |
|
By the Total Average Personnel |
38 |
|
Personnel TURNOVER RATE |
26.3% |
* The lower of these two amounts represents only those employees who were terminated and replaced.