What Is Call Centre Shrinkage and How to Reduce It


Chandler Galt of Talkdesk introduces us to shrinkage in the call centre, discussing the importance of the metric and how to reduce it.

Why You Should Be Tracking Call Centre Shrinkage?

Do you know how many of your scheduled call centre agents are actually available to take calls at any given time versus how many are on break, attending team meetings, doing after-call work, out sick or late to their shift? This percentage is known as shrinkage.

Understanding shrinkage percentage as a call centre key performance indicator (KPI), and knowing how to calculate and manage it can give you an edge in improving customer interactions, average handle time, service level, and your own bottom line.

What Is Call Centre Shrinkage?

Call centre shrinkage is the number of agents actively taking calls divided by the number of agents who are not available for any reason. Those reasons can include:

External Shrinkage Factors:

  • Holidays & vacations
  • Sick time
  • Absenteeism
  • Lateness
  • Leaving early

Internal Shrinkage Factors:

  • Scheduled breaks
  • Lunch breaks
  • Team meetings & training
  • One-on-one meetings
  • After-call work

Other factors might include participating in company events such as farewell parties, or other unplanned activities that affect schedule adherence, such as going to the bathroom, taking personal calls, or emergencies that cause the employee to leave unexpectedly.

Shrinkage Percentage and Workforce Management

There are many factors that can cause shrinkage, including some hidden ones that are not so obvious, as well as some that are beyond your control, and shrinkage percentage has to be taken into account when scheduling the number of agents needed to handle incoming call volume.

Call centres that consider shrinkage as a major workforce management (WFM) indicator when doing hiring and scheduling tend to meet a higher service level at a lower cost.

So how can you accurately determine your shrinkage percentage and what are some of the steps you can take to reduce it?

How to Calculate Contact Centre Shrinkage

Let’s say you need 100 agents to handle call volume during a half-hour period of time to meet your service level targets.

If at any given point during that half-hour period 30 agents are not available to handle calls, that is a shrinkage percentage of 100/30, or 30%.

The shrinkage formula is shown below:

Shrinkage % = Number of agents needed to take calls ÷ Number of agents available

how to calculate call center shrinkage

Minimizing Call Centre Shrinkage

Tracking shrinkage manually or using contact centre software can help you identify where and when shrinkage is taking place. You may find that the highest shrinkage percentage occurs between 9 and 11am or 2 and 3pm, statistically the time when most team meetings are scheduled.

Seasonally, most shrinkage occurs during summer months or at school dismissal times. There might be certain teams or departments within the contact centre with higher shrinkage, or certain employees who take longer breaks, go to the bathroom more often or take more time for personal calls.

By knowing how shrinkage occurs, call centre managers can more effectively ensure agent schedule adherence.

Shrinkage and Customer Experience

One point to keep in mind when considering shrinkage for WFM is that reducing shrinkage should not happen in a vacuum.

Companies looking at reducing the amount of time agents spend in team meetings or training sessions to control shrinkage, for instance, should consider the impact those decisions might have on customer experience and customer satisfaction.

Often additional training is the first thing to go, which can have an effect on the overall quality of customer service that the caller receives.

Our panel give their tips on how to improve shrinkage.

Next Steps for Your Contact Centre

There are a number of Erlang calculators available online to help you calculate shrinkage by call volume, amount of time, average handle time and service level.

Erlang Calculator – for Call Centre Staffing (Online Version 5.0)

Now with Week and Month Planner and Upload Facility

For more great information, check out our Erlang Calculator

However, using contact centre software to monitor shrinkage for you can eliminate these manual steps and let you get back to the business of running your company.

For more information about Talkdesk - visit the Talkdesk Website

About Talkdesk

Talkdesk Talkdesk is a global customer experience leader for customer-obsessed companies. Our contact center solution provides a better way for businesses and customers to engage with one another.

Read other posts by Talkdesk

Call Centre Helper is not responsible for the content of these guest blog posts. The opinions expressed in this article are those of the author, and do not necessarily reflect those of Call Centre Helper.

Author: Talkdesk

Published On: 18th Jun 2019 - Last modified: 17th Apr 2024
Read more about - Business Insights, , ,

Follow Us on LinkedIn

Recommended Articles

The Shrinkage Formula Article Image
What is Call Centre Shrinkage and How to Calculate It?
The word shrinkage made of small gray wooden letters
How to Address Call Centre Shrinkage
Top Tips for Improving Contact Centre Shrinkage
A photo of people playing with wooden figurines
How to Manage Shrinkage