Shrinkage Calculation Formula

Shrinkage Formula:

\[ \text{Shrinkage} = \frac{\text{Internal Shrinkage Hours} + \text{External Shrinkage Hours}}{\text{Hours Available}} \]

Internal Shrinkage Hours (hours):

hours

External Shrinkage Hours (hours):

hours

Hours Available (hours):

hours

Shrinkage:

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1. What is Shrinkage Calculation Formula?

The Shrinkage Calculation Formula is used in call centers to measure the percentage of time that agents are not available to handle calls compared to the total time they are scheduled to work. It helps in workforce management and capacity planning.

2. How Does the Calculator Work?

The calculator uses the shrinkage formula:

\[ \text{Shrinkage} = \frac{\text{Internal Shrinkage Hours} + \text{External Shrinkage Hours}}{\text{Hours Available}} \]

Where:

Internal Shrinkage Hours — Time lost due to internal activities (training, meetings, breaks)
External Shrinkage Hours — Time lost due to external factors (absenteeism, vacations)
Hours Available — Total scheduled working hours

Explanation: The formula calculates the proportion of time that is not productive relative to the total available working time.

3. Importance of Shrinkage Calculation

Details: Accurate shrinkage calculation is crucial for effective workforce management, staffing optimization, and ensuring adequate coverage during operational hours in call centers.

4. Using the Calculator

Tips: Enter internal shrinkage hours, external shrinkage hours, and total hours available. All values must be valid positive numbers, and hours available must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is considered internal shrinkage?
A: Internal shrinkage includes activities like training sessions, team meetings, coaching, and scheduled breaks that occur during working hours.

Q2: What falls under external shrinkage?
A: External shrinkage includes absenteeism, vacations, holidays, and any other time off that reduces agent availability.

Q3: What is an acceptable shrinkage percentage?
A: Typical shrinkage rates range from 25-35% in call centers, but this can vary based on industry standards and specific operational requirements.

Q4: How often should shrinkage be calculated?
A: Shrinkage should be calculated regularly (weekly or monthly) to monitor trends and make necessary staffing adjustments.

Q5: Can shrinkage be reduced?
A: Yes, through better scheduling, reducing unnecessary meetings, optimizing break times, and improving attendance management.