An organization has 20 separations during a month, with an average of 500 employees throughout the month. What was the organization's turnover rate?

The monthly turnover rate equals separations divided by average headcount. 20 separations ÷ 500 employees = 0.04, which expressed as a percentage is 4 %.

A. 25 % results from 125 separations, not 20.

B. 96 % misplaces decimal: would require 480 separations.

D. 2 % would represent 10 separations, not 20.

1. Dessler, G., Human Resource Management, 16th ed., 2020, p. 488.

2. Society for Human Resource Management, “Turnover Metrics Guide,” 2019, Formula 1.