# How to Calculate Shrinkage in Call Center

One of the important key metrics in the call center is “Shrinkage”. Shrinkage denotes absenteeism in the call center. A higher shrinkage can lead to revenue loss, a negative impact on other call center metrics, and call center efficiency.

How to Calculate Shrinkage in a Call Center |

Although every call center aims for 0% shrinkage, as per the process there could be some threshold shrinkage.

In this blog today, we will discuss everything about call center Shrinkage.

## Agenda of Blog:

Let us discuss (in brief) the below points to understand call center shrinkage in detail:

- What is Shrinkage?
- Types of Shrinkage?
- Reason for Shrinkage?
- How to control Shrinkage?
- How to Calculate Shrinkage in Call Center

## What is Shrinkage?

Shrinkage is a call center metric that denotes the absenteeism of agents who were rostered (Paid FTEs ) to handle the calls but were not available due to any reason in a particular shift, day, or month.

Every call Center schedules a certain number of agents to handle calls in a specific shift, and if the agents do not turn up in the required shift or days then this is termed as shrinkage.

**Type of Shrinkage:**

**Shrinkage can be categorized into 2 types:**

**1. Planned Shrinkage:**

When the agent pre-informs to the team leader about his absentees in advance (with required approval) then this shrinkage is counted under **“Planned Shrinkage”.**

Example: Planned Holidays, Medical Treatment, Family Functions, etc.

**2. Unplanned Shrinkage:**

The Shrinkage due to emergency leaves or no prior information in to the supervisor is counted under **“Unplanned Shrinkage”.**

Example: Unplanned Leaves, Same-day intimation, etc.

Also Read: How to Calculate manpower in Call Center ?

## Reason for Shrinkage:

There could be various reasons for Shrinkage (Planned /Unplanned). Some common reasons are outlined below:

- Planned Holidays
- Medical Exigencies
- Family Functions
- Personal Issues

## How to control Shrinkage?

Controlling Shrinkage requires people management skills. Below are some proven tips to control shrinkage.

- Proper Roster Planning
- Holding unnecessary leaves
- Shift End Huddle for next day roster.
- Analyze the historical Trend
- Focus and track repeat outliers.

## How to Calculate Shrinkage in Call Center ?

Now let’s understand **how to calculate Shrinkage in Call Center**. As mentioned above the shrinkage metrics indicate the difference between the **available agents and rostered agents** to take the call.

How to Calculate Shrinkage in a Call Center |

The simple formula to calculate the **Overall shrinkage** is:

**(Planned Shrinkage + Unplanned Shrinkage)**

**Formula to Calculate Planned Shrinkage:**

**(**Total Number of leaves + Total number of Week-Offs**)**/ Total Headcount

**Formula to Calculate Unplanned Shrinkage:**

**(**Total Number Rostered Agents – Total number of Available agents**)**/ Total Number of Rostered Agents

*Let’s understand it with an example for a better explanation:*

*Suppose there are 30 team members in a team. Below is the attendance schedule grid of these team members for a specific day:*

Agent Schedule | Count |
---|---|

Total Headcount |
30 |

Agents on Leaves |
5 |

Agents on Week-Offs |
5 |

Total Rostered Agents |
20 |

Total Available Agents |
17 |

Absent Agent |
3 |

In the grid above and as per the calculation we shared , below is the calculation of Shrinkage:

**Planned shrinkage:**

**(Total Number of leaves + Total number of Week-Offs)/ Total Headcount**

After Putting the grid number in to the formula:

*(5 + 5)/30 *

*10/30 =.33*

**Planned Shrinkage is 33%**

*Unplanned*** shrinkage:**

**(Total Number Rostered Agents – Total number of Available agents)/ Total Number of Rostered Agents**

After Putting the grid number into the formula:

*(20-17)/20*

*3/20 = 0.15*

**Planned Shrinkage is 15%**

Now to calculate the overall Shrinkage we need to add both

**Planned Shrinkage + Unplanned Shrinkage**

i.e. 33%+ 15%

**Overall Shrinkage is ****39%**

That’s how you calculate the **Shrinkage** of the process.

One question that arises many times is:

## What is idle Shrinkage?

The idle shrinkage depends on the process type i.e. **Domestic or International Process**

In the Domestic process, an agent gets 1 week off which means 14% Planned Shrinkage, and considering 2 % of Leave and 8% of Unplanned Shrinkage

So the idle shrinkage for a **Domestic process should be < 24%.**

Likewise, the idle shrinkage for **International processes should not exceed 35%**

*************************ENDS***************************

So Friend’s this is all about the **Shrinkage Metrics in Call Center and **I hope after reading this blog all your doubts related to Shrinkage Metrics will be cleared.

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