Managing shrinkage effectively in the workplace is essential, but it’s not just about making it as low as possible. Shrinkage affects both operational efficiency and employee wellbeing, so finding the right balance is crucial.
By addressing it thoughtfully, you can create a productive and supportive work environment, which is why we spoke to Dan Smitley, Founder of 2:Three Consulting, for his advice on how to manage shrinkage in the contact centre.
Video: Top Tips for Managing Shrinkage
Watch the video below to hear Dan’s advice on managing contact centre shrinkage:
With thanks to Dan Smitley, Founder of 2:Three Consulting for contributing this video.
4 Key Strategies for Shrinkage Management
Shrinkage management isn’t just about lowering numbers – it’s about creating an environment where employees can perform at their best while feeling valued and supported, so follow these four tips to manage shrinkage in your contact centre:
1. Define Your Comfort Level
The aim isn’t to get shrinkage to its lowest point. Instead, find a level that works for your organisation.
“We are not trying to get shrinkage as low as possible – what the goal is, is to try and find what we’re comfortable for.
It’s very possible that we might need to lower our shrinkage, but it’s also possible, and for us to consider, how might we need to increase it to be able to improve the employee experience?”
Sometimes, increasing shrinkage can improve the employee experience. Assess what your team needs to thrive, and adjust accordingly.
2. Take a Holistic View
Shrinkage comes in two forms: external and internal.
- External shrinkage includes time lost to sick leave, planned time off (PTO), or unplanned absences before employees even arrive at work.
- Internal shrinkage covers time spent in meetings, training, or coaching sessions.
Evaluate both types to understand the full picture.
“Make sure that we’re looking at our shrinkage holistically, making sure that we’re looking at external, before they arrive at the contact centre, things like sick time, and PTO time, planned or unplanned.
Making sure we’re looking at that external shrinkage, but also the internal shrinkage, hours that we’re losing because they are maybe in a meeting or in a coaching session. We need to make sure that we’re looking at shrinkage holistically.”
3. Encourage a Healthy Approach to Time Off
Look at how PTO is being used—not just by those who take too much but also by those who take too little. Encourage employees to take time to recharge and step away when needed.
Also, think about the culture surrounding time off. Are employees comfortable taking the breaks they need?
“Look at who’s using, say PTO as an example, not just those that are using a lot of it, but those that aren’t using enough.
Make sure to use this as an opportunity to have a conversation, to say, “hey, are you making sure that you’re getting enough time away?” “Are you being able to step away and breathe and recharge?”
And then kind of a sub point 3 actually, is to consider the culture that you might be creating around shrinkage and around time off, and making sure that people feel comfortable to take the time off that they need.
Creating a supportive environment helps ensure your team stays motivated and refreshed.
4. Have Conversations Before Coaching
For employees with excessive internal shrinkage, such as frequent breaks or personal time, start with a conversation.
Understand their needs and challenges before jumping into coaching. This helps build trust and ensures they feel supported.
“Look to have conversations and equip people that might be excessive, say in internal shrinkage – they’re maybe taking too much break, maybe they’re taking too much personal time.
Things that are very easy for us to shift into coaching that behaviour, but before we start coaching it, let’s have a conversation.
What’s going on and how can we make sure that they are equipped and supported to be able to have all the tools and time that they need to feel fulfilled at work?
Shrinkage isn’t just about lowering it. Shrinkage is about the environment we’re trying to create for our employees.
If you are looking for more great insights from the experts, check out these next:
- Quick Wins to Get the Most Out of Your WFM System
- Best Statements to Use When Closing a Live Chat
- How Does CCaaS Drive Innovation in the Contact Centre?
- Agent Self-Evaluation – The Pros and Cons
Author: Robyn Coppell
Published On: 4th Dec 2024 - Last modified: 2nd May 2025
Read more about - Video, Dan Smitley, Shrinkage, Workforce Management (WFM)
