What Is Shrinkage?

shrinkage pie
Filed under - Definitions,

Shrinkage is a measurement of anything that takes an agent away from their ability to take customer contacts. There are a number of alternative definitions that are broadly similar in concept:

  • Shrinkage is any scheduled and/or unscheduled optimization/activities prohibiting employees from performing their duties.
  • Shrinkage is the list of things that take your agents away from being productive, i.e. serving customers.
  • Shrinkage is the difference between the total number of staff you employ (budget) and those available to undertake the primary tasks (work) for which they are employed.

The  Shrinkage Formula

The contact centre or BPO shrinkage formula is calculated by adding the total hours of external shrinkage and the total hours of internal shrinkage, then dividing this by the total hours available, before multiplying the result by 100.

The call centre shrinkage formula

Shrinkage is normally expressed across a complete 12-month period.

Author: Rachael Trickey

Published On: 17th Jun 2022
Read more about - Definitions,

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