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What does a higher employee turnover ratio indicate?

1. The company is experiencing a greater rate of employees leaving relative to its overall workforce
2. The company is successfully retaining all its employees.
3. Employee satisfaction and engagement are at an all-time high.
4. The company is experiencing a significant decrease in its workforce size.

Correct answer: The company is experiencing a greater rate of employees leaving relative to its overall workforce

Solution

Employee turnover ratio measures how many employees leave an organization relative to its workforce. A higher ratio means a larger proportion of employees are leaving over a given period.

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