What is the turnover effect? Explain how it is calculated with an example.
What will be an ideal response?
The turnover effect recognizes the fact that when people leave (through layoffs, quitting, retiring), they typically are replaced by employees who earn a lower wage. The turnover effect can be calculated as annual turnover multiplied by the planned average increase. For example, assume that an organization whose labor costs equal $1 million a year has a turnover rate of 15 percent and a planned average increase of 6 percent. The turnover effect is .15 × .06 = 0.9%, or $9,000 (.009 × $1,000,000). So instead of budgeting an additional $60,000 to fund a 6 percent increase, only $51,000 is needed. The turnover effect will also reduce benefit costs linked to base pay, such as pensions.
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What will be an ideal response?
Use the correct form of the verb in parentheses: present perfect tense or past tense. Ben (retire) two years ago
U.S. Labor relations are set primarily by strike power, court orders, and public decision-making than by private administrations of contract terms.
Answer the following statement true (T) or false (F)
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