Shrinkage is defined as the time during which people are paid during which they are not available to handle calls. Shrinkage in a broad term means every activity that would keep an agent off the phone. This would include the leaves & holidays entitlement, offline activities, breaks, outbound calling, and once an employee has gathered all the information above, they calculate the total time for the activities above against the annual working days. Mostly shrinkage is considered in the organizations where tele-calling is a vital part of the business such as BPO (Business process outsourcing)

How to calculate shrinkage percentage?

Shrinkage is the percentage of employees who are not present to take calls at a particular time or day. There are two types of shrinkage – Planned Shrinkage & Unplanned Shrinkage.

Planned Shrinkage includes Week Offs and Leaves & Unplanned Shrinkage includes Absenteeism and Half day.

Shrinkage = Planned shrinkage + Unplanned Shrinkage

Planned Shrinkage = (No. of week-off + No. of leaves)/Total Head-count

Unplanned Shrinkage = {No. of absent + (Half day/2)}/ Total Roster-count