Shrinkage

What is Shrinkage?

Shrinkage refers to the percentage of time employees are unavailable for productive work, typically in call centers or customer service environments. It accounts for all non-working periods such as breaks, training, meetings, and absenteeism, impacting resource planning and customer experience.

Key Characteristics of Shrinkage

• Includes non-productive time: Time taken for breaks, training, and meetings that reduces available agent hours.
• Varies by organization: Shrinkage rates fluctuate depending on workforce policies and operational demands.
• Critical for workforce management: Used to calculate accurate staffing requirements and avoid customer wait times.
• Impacts service levels: High shrinkage can lead to understaffing and customer dissatisfaction.

Use Cases of Shrinkage in CX

• Optimizing agent scheduling: Adjusting shifts based on shrinkage to maintain consistent customer support.
• Predicting staffing needs: Forecasting agent availability to meet fluctuating call volumes efficiently.
• Improving customer wait times: Minimizing shrinkage helps ensure faster response and reduced hold periods.
• Analyzing operational efficiency: Identifying areas for process improvements and training to lower shrinkage.

Why Shrinkage Matters

• Enhances workforce accuracy: Precise agent availability planning.
• Improves customer satisfaction: Reduces wait times and service delays.
• Optimizes operational costs: Prevents overstaffing or understaffing scenarios.
• Supports proactive management: Enables better handling of agent productivity gaps.