Call center shrinkage is a vital metric that call centers must track in order to maximize efficiency and accuracy. In every business, the name of the game is to have your employees working on what matters the most and what makes the most money, as much as they can.
In a call center, taking calls and handling interactions with customers is the priority, and what generates revenue. If call center shrinkage increases, that means that agents have less time to take calls, and the call center’s income will go down over time. In this blog, we will go through how TeleDirect can minimize call center shrinkage and make sure that your business forecasts are as accurate as possible.
What is Shrinkage in a Call Center?
To put it simply, shrinkage in a call center is the amount of time that call center agents are not taking calls. If you underestimate shrinkage, that can lead to too many calls and not enough agents to answer them. This will result in long wait times for customers and general dissatisfaction. This can be mitigated by scheduling planned shrinkage, which is an agreed-upon and planned amount of time that non-call activities will take place. This can include team meetings, coaching, training, vacations, etc.
Unplanned shrinkage, however, is what can really throw a spanner into the works of a call center, especially if the business runs relatively lean. Unplanned shrinkage includes employees calling out sick, taking unscheduled breaks, coming in late, having to leave early, and so on. Obviously, some of these unplanned shrinkage occurrences are normal to every business, but if there is an unexpected amount or a period of time where unplanned shrinkage is higher than normal, this can really hurt the business’s bottom line and, in the case of a call center, the customer experience.
The Impact of Shrinkage on Forecasting
Call center shrinkage benchmarks have to be taken into account when forecasting, as they directly impact the day-to-day running of the call center and agent efficiency. Shrinkage should also be adjusted on an intraday basis, as all days, weeks, months, and years will be different due to various things like seasonality, new employees being onboarded, holidays during the month, etc.
When shrinkage is being calculated for forecasting, the attrition should be either monthly, annual, or rolling over a certain period of time, and the attrition can be set for a particular subset of agents or a certain skill that they use or possess to ascertain the best and most accurate results possible.
As touched on already above, any increase in shrinkage that is not accounted for will have only negative impacts on the business and customer experience, so it is vital to make sure that all shrinkage is accounted for. A 1% miscalculation in shrinkage can lead to hundreds of thousands of dollars lost for an agent contact center.
TeleDirect’s Approach to Minimizing Contact Center Shrinkage
Shrinkage is obviously extremely important, which is why TeleDirect takes a proactive approach to minimizing shrinkage with its call center services to ensure optimal staffing levels and excellent customer experiences.
Predictive Workforce Management
TeleDirect takes advantage of advanced call center technology to predict demand and schedule staffing with precision. By modeling peak periods, seasonal fluctuations, and historical shrinkage data, we ensure coverage is aligned with real-world call volumes.
Balanced Planning for Planned Shrinkage
Building shrinkage into the schedule is essential. Reacting to planned and/or unplanned shrinkage after the fact is a recipe for inefficiencies and stress. Incorporating shrinkage ensures that necessary breaks, training, and coaching sessions don’t compromise service levels.
Real-Time Monitoring & Intraday Management
You could have your call center running at 100% realistic efficiency and be on top of everything, but unplanned shrinkage could still derail your schedule. TeleDirect combats this with real-time monitoring of agent availability and intraday adjustments through our tech support services.
Key Benefits of Minimizing Call Center Shrinkage
There are many benefits to minimizing contact center shrinkage:
Increased Productivity
Giving your agents more time to manage calls will almost certainly result in more customers being heard, more money coming in, and the business running better overall. By optimizing the agents’ schedules and being able to predict and minimize shrinkage, productivity can only increase.
Reduced Agent Burnout
Underestimating or ignoring shrinkage can lead to rushed calls, increased overtime, and agent overwork. By accurately predicting and minimizing shrinkage, agents’ schedules will be balanced and sustainable, leading to them being able to focus on the quality of the call, not how many calls they can get through, and lower overall turnover in agents.
Shorter Wait Times
Apart from the agents themselves, customers will be the first ones to feel the effects of untracked shrinkage. Wait times will go up, and satisfaction will go down. By keeping shrinkage under control, call queues shrink dramatically, agents aren’t rushing, and overall customer experience and satisfaction rise.
Stop losing time (and revenue) to call center shrinkage. Let TeleDirect optimize your workforce for maximum efficiency. Contact us today!
FAQs
What is the average shrinkage for a call center?
Average shrinkage comes in at around 25% to 35%. This depends on whether it is solely an inbound or an outbound call center. A good rule of thumb is to try to be below 30%.
What are common causes of call center shrinkage?
Planned and unplanned shrinkage. Planned shrinkage includes vacations, lunch breaks, team meetings, and training. Unplanned shrinkage is calling out sick, coming in late, having technical problems, or performing general office tasks.
How does call center shrinkage affect customer satisfaction?
If agents are on calls less, that means they can get through fewer customers, resulting in longer wait times, calls being rushed because agents are too busy, or customers hanging up before even being reached (abandonment).
Smitha serves as the CEO and CFO of TeleDirect, a premier 24/7/365 call center recognized among the Top 5 Call Centers by Forbes.com. A licensed CPA since 2007 through the California Board of Accountancy, Smitha brings over 20 years of expertise in business and finance to her leadership role.
As a results-driven executive, Smitha has a proven track record of driving profitability, fostering growth, and enhancing operational efficiency. Her strategic vision has not only improved customer satisfaction but also elevated employee engagement, creating a culture of excellence at TeleDirect. Smitha’s deep expertise in financial analysis and planning empowers her to develop innovative solutions that align the needs of clients, employees, and stakeholders.
Passionate about building lasting relationships and delivering exceptional results, Smitha remains dedicated to leading TeleDirect in setting industry benchmarks for quality and service.
