Ultimate Guide On Importance Of Call Center Shrinkage

Effective workforce management is essential in call centers, and one of the biggest challenges is controlling shrinkage. Typically, call center shrinkage can account for a significant portion of lost productivity, making it important for businesses to understand how to manage it. Call center shrinkage benchmarks usually fall between 30% to 35%, but this varies depending on industry and operational factors.

Content:

Call center shrinkage refers to the time that agents are unavailable to handle customer calls due to various scheduled or unscheduled activities. In essence, shrinkage in a call center represents the time when agents are not performing their core tasks—answering customer calls. This includes both internal activities (like training and meetings) and external factors (such as sickness or vacations).

Call center shrinkage definition may vary slightly from one business to another, but the underlying concept remains the same: any time agents are not on the phone with customers, it’s considered shrinkage.

Examples of Shrinkage in Call Centers:

• Scheduled shrinkage: Includes planned activities like training, meetings, or breaks.
• Unscheduled shrinkage: Includes sickness, absenteeism, or tardiness.

To better understand shrinkage, it's important to break it down into its components. Call center shrinkage typically includes both internal shrinkage and external shrinkage:

A. Internal Shrinkage

• Meetings: Team discussions or one-on-one check-ins that take agents off the phone.
• Coaching and Training: Developmental activities for improving agent skills.
• System Downtime: Time lost when systems or tools are unavailable.
• Unscheduled Breaks: Breaks agents take without prior approval or outside of their scheduled times.
• Assisting Other Departments: Time agents spend helping other teams or departments.
• Special Projects: Time spent on non-call center tasks.

B. External Shrinkage 

• Vacations: Paid time off for agents.
• Late Arrivals: Time lost when agents arrive late to work.
• Sick Leave: Time taken off due to illness.
• Absenteeism: Unplanned absence from work.
• Leaving Early: Time lost when agents leave before their shift ends.

Call center shrinkage calculator tools are commonly used to calculate shrinkage, and there are two primary methods for doing so: agent-based and time-based calculations.

Agent-Based Shrinkage Formula:

This method calculates shrinkage based on the number of agents available versus the number of agents required to meet the service level.

Formula:

Example: If you need 100 agents to meet call volume expectations during a certain time period, but only 70 agents are available due to shrinkage, the shrinkage percentage would be calculated as follows:

Time-Based Shrinkage Formula:

This method calculates shrinkage by comparing the total number of hours agents are available to the number of hours they are scheduled to work. This is often more useful for evaluating individual agent performance.

Formula: 

Managing shrinkage effectively involves both proactive measures and leveraging technology to track and reduce inefficiencies. Here are some strategies to help:

1. Track Shrinkage Patterns:

Identify when shrinkage is most prevalent. For example, shrinkage may be higher during specific shifts or after team meetings. This data can be used to make adjustments and reduce inefficiencies.

2. Use Workforce Management (WFM) Software:

Implementing workforce management software can automate scheduling, forecasting, and tracking of shrinkage. WFM tools offer better accuracy compared to manual methods, helping to optimize agent availability and reduce unnecessary downtime.

3. Offer Flexibility:

Allow agents to manage their schedules within predefined boundaries. Many WFM solutions provide features that allow agents to request shifts or breaks, which can help reduce absenteeism and tardiness.

4. Monitor Performance in Real-Time: Utilize performance tracking metrics that allow you to monitor shrinkage in real-time. This helps identify when agents are taking longer breaks or are unavailable to take calls, allowing managers to take corrective actions.

Next Steps for Your Call Center:

To effectively manage shrinkage, businesses can use Erlang calculators to calculate shrinkage based on service level targets, average handle time, and call volume. Additionally, integrating predictive modeling with your WFM system can help you forecast shrinkage more accurately and compensate for the variability in the system.