In the call center industry, shrinkage is an important measure that affects how well the center runs and how happy customers are. It represents the amount of time agents are unavailable to take customer calls during their scheduled shifts. Knowing what shrinkage is and managing it properly can help improve service and make better use of resources.
What is Shrinkage in a Call Center?
Shrinkage in a call center refers to the difference between the total hours that agents are paid to work and the actual hours they spend handling customer calls. This metric helps managers understand how many agents are available to meet customer needs at any time.
For example, if a call center has a shrinkage rate of 30%, it means that only 70% of the agents are available to take calls. This can result in longer wait times for customers and lower satisfaction.
Why Shrinkage Matters in a Call Center
Shrinkage directly impacts how well a call center can meet customer service goals. If too many agents are unavailable due to shrinkage, there may not be enough staff to handle calls, leading to long wait times, poor service, and unhappy customers.
Here’s why it’s essential to manage shrinkage:
- Service Levels: Fewer agents on the phones can lead to missed service level agreements (SLAs) and longer call wait times.
- Staffing Efficiency: Shrinkage can make it seem like you have more agents available than you do. This can lead to understaffing and overworked agents.
- Agent Stress: If there aren’t enough agents available, those working may experience higher workloads, which can lead to burnout and low morale.
Managing shrinkage ensures that a call center has enough agents available to meet customer needs and keep service levels high.
Types of Shrinkage
Shrinkage can be divided into a few different types:
- Scheduled Shrinkage: This includes planned events like vacations, training sessions, and breaks that agents know about in advance.
- Unscheduled Shrinkage: This involves unexpected events such as sick days or being late to work.
Understanding these categories helps managers spot areas for improvement in their staffing and scheduling practices.
How to Calculate Shrinkage
To calculate shrinkage, you can use this formula in words:
- Add up all the time agents are unavailable to take calls. This includes breaks, training, and absences.
- Add up all the time agents are scheduled to work.
- Divide the total unavailable time by the total scheduled time.
- Multiply the result by 100 to get the percentage.
For example, if agents are unavailable for 2 hours during an 8-hour shift, the shrinkage would be calculated as follows:
- Unavailable time: 2 hours
- Total scheduled time: 8 hours
To calculate the shrinkage percentage:
- Divide 2 by 8, which equals 0.25.
- Multiply 0.25 by 100, which equals 25%.
So, the shrinkage rate would be 25%. This means that 25% of the scheduled time is spent on activities other than taking calls.
Acceptable Shrinkage Rates
The average acceptable shrinkage rate for call centers usually falls between 30% and 35%. A high shrinkage rate means fewer agents are available to take calls, leading to longer wait times for customers. This can cause frustration and result in longer Average Handle Times, higher Call Abandonment Rates, and lower Customer Satisfaction Scores (CSAT).
On the other hand, aiming for a very low shrinkage rate can lead to staff burnout because agents may not get enough breaks. It’s crucial to monitor and manage shrinkage to provide fast support and maintain good customer service while meeting your service level agreements (SLAs).
Factors Contributing to Shrinkage
Several factors contribute to shrinkage in call centers:
Internal Factors:
- Paid breaks
- Meetings
- Training sessions
- System downtimes
External Factors:
- Public holidays
- Sick leave
- Absenteeism
- Early departures or lateness
By categorizing these factors, managers can develop better strategies to manage and reduce shrinkage effectively.
How to Reduce Call Center Shrinkage
While shrinkage can’t be eliminated, there are steps you can take to minimize it. Here are some practical strategies for reducing call center shrinkage:
- Reduce Inbound Call Volume with Self-Service Options: One way to lower shrinkage in a call center is to reduce inbound call volume by offering self-service support options. A report by Higher Logic found that 84% of consumers try to resolve support issues on their own before contacting customer support.
- Accurate Forecasting: Properly forecast staffing needs based on expected shrinkage. Consider factors like seasonal trends and agent vacation schedules.
- Stagger Breaks: Instead of having all agents take breaks at the same time, stagger them so there’s always coverage for incoming calls.
- Flexible Shifts: Allow agents to swap shifts or take time off in a more flexible manner to reduce unscheduled absences.
- Real-Time Monitoring: Use workforce management software to monitor shrinkage in real time. This allows managers to make quick adjustments if too many agents are unavailable.
- Prevent Technical Issues: Regularly maintain and upgrade systems to minimize downtime that could affect agents’ ability to take calls.
- Improve Attendance Policies: Offer incentives for good attendance and create wellness programs to reduce unscheduled absences due to sickness.
By implementing these strategies, you can keep shrinkage at manageable levels and ensure your call center runs efficiently.
Tools for Managing Shrinkage
Modern workforce management tools can help managers track shrinkage more effectively. These tools monitor agent availability in real-time, allowing managers to identify issues and make necessary adjustments. With accurate data on shrinkage, managers can improve scheduling and staffing decisions.
For example, real-time dashboards can show when too many agents are on break, in training, or experiencing system issues. This allows for quick action to ensure service levels are maintained.
Know How to Manage Shrinkage in Call Centers
Shrinkage is an important part of how a call center operates. It shows the time agents are unavailable to take calls, which can affect service quality and customer happiness. Knowing what shrinkage is and managing it well helps keep enough agents available to meet customer needs.
By tracking different types of shrinkage, calculating rates, and using strategies to reduce it, call center managers can work more efficiently and improve the customer experience. Modern tools can also help monitor shrinkage in real-time, ensuring the call center runs smoothly.