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Shrinkage is the number of agents available, divided by the number of agents who are not available at the given time. The difference between them attributes to call center shrinkage. Let’s break it down a little bit more.

A Contact Center agent is paid for his call time with customers. However, there are moments when your agents won’t be on call or tending to customers. They might be on break, devoid of responsibility, working on redundant tasks, or even absent. This difference between the agents employed and the agents currently at a task is your call center shrinkage.

How to measure Contact Center Shrinkage?

There are two methods to calculate shrinkage. One of them is to calculate the workforce requirement and the other is to measure every agent’s performance.

The First Formula is to understand agent availability for staffing management

Shrinkage = (Number of agents needed to take calls) divided by (Number of agents available to take calls)

The Second Formula is to understand agent performance

Shrinkage = (Total hours of external shrinkage + Total hours of internal shrinkage) / Total hours available

How does Shrinkage impact Call Center Efficiency?

High Call Center Shrinkage is a big no-no. It means there is poor workforce management or your team is understaffed. Lack of agents will lead to increased wait time and delayed customer satisfaction. One thing leads to another, and you will see a leakage in your funnel.

Hence, it is important to calculate shrinkage as it will give you some clarity on how to adequately delegate and staff up your team. The ideal way is to strategize around automation and human assistance, so your agents can take a breather without sacrificing customer satisfaction.