Number of workers replaced as a fraction of average workforce gives:
ASeparation labour turnover ratio
BReplacement labour turnover ratio
CFlux turnover
DNew recruit ratio
Answer & Solution
Correct answer: B. Replacement labour turnover ratio
1. Replacement ratio measures only workers hired to replace those who left.
2. Replacement ratio = number of workers replaced / average workforce.
3. Separation ratio tracks departures; flux tracks total flow.
4. Hence the formula above is the replacement labour turnover ratio.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.6.1 ¶3_
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