📞 Introduction
Welcome to our informative article about the common problem faced by call centers, Shrinkage. If you are a call center manager, you might know that shrinkage has a significant impact on the productivity of agents. The term “shrinkage” refers to the time that an agent is not available to perform work-related tasks. Such time can occur due to various reasons, such as breaks, lunch, absenteeism, meeting or training sessions, and even bathroom breaks. In this article, we will discuss shrinkage in detail, how it affects call centers, and what measures can be taken to minimize its impact. So, let’s dive in!
📉 Understanding Shrinkage in Call Centers
Before we proceed with the causes and solutions for shrinkage, it’s necessary to know how to calculate shrinkage. Call centers calculate shrinkage as a percentage of the available work hours an agent has. The shrinkage percentage includes time spent on breaks, unproductive off-phone work hours, paid time off, and other factors that prevent call handling.
Shrinkage has a direct impact on the efficiency of a call center. The higher the shrinkage percentage, the lower the productivity rate of agents. Agents who are not available to take calls may cause long wait times for customers, which ultimately affects the overall customer experience.
Types of Shrinkage
Shrinkage can be categorized under two types: Planned and Unplanned.
| Planned Shrinkage | Unplanned Shrinkage |
|---|---|
| Training and coaching | Sickness and absence |
| Meetings and briefings | System outage and technical issues |
| Break time | Adherence and compliance |
| Lunch | Processing time |
👀 Causes of Shrinkage in Call Centers
Shrinkage is a widespread issue, but it can occur due to different reasons. Understanding the cause of shrinkage can help call center managers find ways to reduce it effectively. Here are a few reasons why shrinkage occurs in call centers:
Calls Per Hour (CPH)
One of the significant reasons for shrinkage is the excessive number of calls per hour (CPH). It’s essential to keep track of the number of calls that each agent can take in an hour accurately. If the number of calls exceeds the capacity, agents will take more breaks, and the shrinkage percentage will increase.
Technology Outages
Technology outages, such as a power outage, internet connectivity issues, or system crashes, can result in unplanned shrinkage. These technological issues can significantly impact the work of agents and may result in extended wait times for customers.
Adherence and Compliance
Adherence and compliance issues also increase shrinkage. When agents do not follow the call center protocols and guidelines, more time is wasted on correcting errors and other issues, resulting in unplanned shrinkage.
Sickness and Absence
Illness, absenteeism, and medical emergencies can lead to a higher unplanned shrinkage percentage. Call center managers need to have backup plans in case such an event occurs.
✅ Reducing Shrinkage in Call Centers
Now that we know what causes shrinkage let’s talk about the ways we can reduce it.
Effective Scheduling
Effective scheduling can help you plan and manage agent availability efficiently. It’s crucial to plan the timing and duration of breaks and lunches to optimize productivity and reduce shrinkage.
Proper Training and Coaching
Offering proper training and coaching sessions can help agents improve their skills and reduce errors during calls. This will consequently result in lower unplanned shrinkage.
Accurate CPH Calculations
Accurate calculations of CPH will ensure the workload is distributed evenly amongst agents, avoiding excessive workload cases that result in time wastage and shrinkage.
Backup Plans in Place
Call centers must have backup plans in place for emergencies and absences. This could include cross-training agents, maintaining a list of on-call employees and contractors, or even outsourcing.
❓ Frequently Asked Questions about Shrinkage in Call Centers
1. What is Shrinkage?
Shrinkage is the time that an agent is not available to perform work-related tasks, including breaks, lunch, absenteeism, meeting or training sessions, and even bathroom breaks.
2. What is the impact of shrinkage on a call center?
The higher the shrinkage percentage, the lower the productivity rate of agents. Agents who are not available to take calls may cause long wait times for customers, which ultimately affects the overall customer experience.
3. What are the different types of shrinkage?
Shrinkage can be categorized under two types: Planned and Unplanned.
4. Why does shrinkage occur?
Shrinkage can occur due to various reasons such as excessive calls per hour, unplanned technical outages, adherence and compliance issues, and more.
5. How can call center managers reduce shrinkage?
Effective scheduling, proper training and coaching, accurate CPH calculations, and having backup plans in place can help call center managers reduce shrinkage.
6. How to manage unplanned shrinkage?
Call centers can manage unplanned shrinkage by employing cross-training agents, maintaining a list of on-call employees and contractors or even outsourcing.
7. How to calculate shrinkage in call centers?
Call centers calculate shrinkage as a percentage of the available work hours an agent has, which includes time spent on breaks, unproductive off-phone work hours, paid time off, and other factors that prevent call handling.
🌟 Conclusion
Shrinkage in call centers is an inevitable occurrence, but it can be reduced significantly with proper planning and management. In this article, we discussed the causes and types of shrinkage, how it affects call centers, and the measures that call center managers can take to minimize its impact. Reducing shrinkage can lead to better agent productivity, improved customer satisfaction, and ultimately a boost in revenue generation. We hope this article provides useful insights to call center managers dealing with shrinkage issues.
🚨 Disclaimer
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