Staff reduction rate from annualized to monthly rates

• MHB
• drawingblankz
In summary, $r=0.01$ is the monthly percentage at the beginning of the year, which will reduce the workforce by 1%.
drawingblankz
Hi,

If I have 100 staff at the beginning of the financial year and is ordered to reduce the workforce by 12%, ie I should have 88 on average at the end of the year. How would I calculate the monthly percentage so the reduction of staff can be rolled out gradually. I don't want to cut 12 in the first month then do nothing for the rest of the year but that's not logical for the remaining staff.

If I cut 1 each month ie staff level in the first month is 99, 2nd month 98 etc, 12th month 88. but the average staff is not 88 ie (99+98+97+...88)/12 is 93.50.

If you could help it would be great. thanks.

Steph

drawingblankz said:
Hi,

If I have 100 staff at the beginning of the financial year and is ordered to reduce the workforce by 12%, ie I should have 88 on average at the end of the year. How would I calculate the monthly percentage so the reduction of staff can be rolled out gradually. I don't want to cut 12 in the first month then do nothing for the rest of the year but that's not logical for the remaining staff.

If I cut 1 each month ie staff level in the first month is 99, 2nd month 98 etc, 12th month 88. but the average staff is not 88 ie (99+98+97+...88)/12 is 93.50.

If you could help it would be great. thanks.

Steph

Hi drawingblankz, welcome to MHB!

The problem asks for a monthly percentage.
It's not asking for an average staff of 88 over the year.
Instead it asks for a monthly percentage, so that at the end of the year we will have a staff of 88.

Let's give the monthly percentage a name and call it $r$.
Then after one month we have a workforce of $100(1-r)$.
That means that if we would pick $r=1\%=0.01$, that we would have $100(1-0.01)=99$ - same as in your example.

After 2 months that will be $100(1-r)^2$.
And so on, so that after 12 months we have a workforce of $100(1-r)^{12}$, which is supposed to be 88.
Can you find $r$ from that?

1. What is the purpose of calculating staff reduction rate from annualized to monthly rates?

The purpose of calculating the staff reduction rate from annualized to monthly rates is to determine the percentage decrease in the number of employees over a period of one month. This can help organizations track their workforce changes and make informed decisions about staffing levels.

2. How is the staff reduction rate from annualized to monthly rates calculated?

The staff reduction rate can be calculated by taking the difference between the number of employees at the beginning and end of a month, dividing it by the number of employees at the beginning of the month, and then multiplying by 100 to get the percentage. This calculation can be done for any time period, such as quarterly or annually, to track changes in staff levels.

3. What factors can affect the staff reduction rate from annualized to monthly rates?

The staff reduction rate can be affected by various factors, such as voluntary resignations, layoffs, retirements, and hiring freeze. Economic conditions, industry changes, and company restructuring can also impact the rate of staff reduction.

4. How can organizations use the staff reduction rate from annualized to monthly rates?

Organizations can use the staff reduction rate to analyze their workforce trends and make strategic decisions about staffing levels. For example, if the rate is consistently high, it may indicate the need for cost-cutting measures or reorganization. On the other hand, a low rate can indicate a need for hiring or expansion.

5. Can the staff reduction rate from annualized to monthly rates be used for performance evaluation?

No, the staff reduction rate should not be used as a performance evaluation metric. It is solely a measure of workforce changes and should not be used to evaluate individual employees. Other performance metrics should be used for this purpose.

Replies
2
Views
2K
Replies
3
Views
1K
Replies
1
Views
2K
Replies
16
Views
6K
Replies
2
Views
2K
Replies
2
Views
2K
Replies
9
Views
1K
Replies
10
Views
6K
Replies
9
Views
2K
Replies
3
Views
3K