A company is analyzing its Q2 performance with the following information: Source 1: Memo from HR stating employee turnover increased by 10% in Q2 compared to Q1. Source 2: Email from Finance indicating a 5% increase in total payroll costs for Q2. Source 3: A table showing the number of new hires in Q2, categorized by department and salary band. Which conclusion is best supported by the provided information?

The correct answer to the question "A company is analyzing its Q2 performance with the following information: Source 1: Memo from HR stating employee turnover increased by 10% in Q2 compared to Q1. Source 2: Email from Finance indicating a 5% increase in total payroll costs for Q2. Source 3: A table showing the number of new hires in Q2, categorized by department and salary band. Which conclusion is best supported by the provided information?" is Option A: The company hired more senior employees (higher salary bands) in Q2..

The other options — B) Employee morale declined significantly in Q2., C) The average salary of remaining employees decreased in Q2., D) Departments with high turnover also had the most new hires. — are incorrect for this GMAT Exam Prep question. As explained above: An increase in total payroll despite higher turnover (meaning some employees left) suggests that the employees who replaced them, or were added, were, on average, paid more. This strongly supports th…