What is the external HR supply, given that the organization has a workforce of 1 500, its historical annual replacement/loss rate is 5 percent, and its desired future growth rate is 12 percent? Round to closest whole number.
A) -255
B) -105
C) 105
D) 255

Question

Quizplus · Accepted Answer

To calculate the external HR supply, we need to subtract the current workforce from the desired future workforce (set by growth rate) and then add the replacement/loss rate.

The calculation is: 
Desired future workforce = Current workforce x (1 + growth rate) 
Desired future workforce = 1,500 x (1 + 0.12) = 1,680

External HR supply = Desired future workforce - Current workforce + Replacement/loss rate 
External HR supply = 1,680 - 1,500 + (0.05 x 1,500) 
External HR supply = 255

Therefore, the external HR supply is 255, which makes option D the correct answer.

What Is the External HR Supply, Given That the Organization