What is Call Center Shrinkage?

Call center shrinkage indicates the percentage of time agents are unavailable to handle customer calls during their scheduled hours. It represents the difference between the time agents are paid to take calls and the actual time they spend doing so.

Call center shrinkage can stem from internal or external sources. Internal shrinkage happens when agents are present at work but can't engage with customers due to workplace activities such as meetings, training sessions, or system downtimes. On the other hand, external shrinkage is caused by factors outside the workplace, including holidays, vacations, and issues like frequent absenteeism and tardiness.

Shrinkage can also be calculated to assess an agent's performance:

Shrinkage % = (Total hours of internal shrinkage + Total hours of external shrinkage / Total scheduled working hours) x 100

For example, if an agent spends 40 hours at work per week, with 8 hours lost to internal shrinkage (like lunch or meetings) and 3 hours to external shrinkage (such as lateness or extended breaks), the calculation will look like this:

Shrinkage = ((8 + 3) / 40) x 100 = 27.5%

The average shrinkage rates of call centers usually range between 30% and 35%. These figures may seem high, but it's important to remember that employees need scheduled breaks to maintain optimal service levels.