Call Center Shrinkage: Causes, Impact, and Effective Reduction Strategies | Thien Tu BPO

Running a high-performing contact center requires more than hiring skilled agents. Even with the right staff, many businesses face the challenge of shrinkage—the gap between scheduled time and actual productive time spent serving customers.

If left unmanaged, shrinkage increases labor costs, lowers service levels, and negatively impacts customer satisfaction. In this guide, we’ll explore what shrinkage means, its causes, how to calculate it, and proven strategies to reduce it.

What Is Shrinkage in a Contact Center?

Shrinkage refers to the portion of an agent’s paid time that is unavailable for handling customer interactions. It accounts for time lost to breaks, absenteeism, training, meetings, or unexpected issues.

For example, if 100 agents are scheduled to work but only 80 are available to take calls due to breaks or other activities, shrinkage is 20%.

Shrinkage is a key workforce management metric because it directly impacts staffing levels, service quality, and costs.

Common Causes of Call Center Shrinkage

Shrinkage can be categorized into two main types:

1. Planned Shrinkage

Planned activities that take agents away from customer interactions, such as:

• Breaks and lunches

• Training sessions

• Coaching and team meetings

• Compliance updates

• Administrative tasks

2. Unplanned Shrinkage

Unscheduled or unexpected events that reduce agent availability, including:

• Absenteeism and sick leave

• Late logins

• System downtime or technical issues

• Extended after-call work

• Personal emergencies

Both types contribute to lower agent occupancy and higher costs if not properly managed.

Shrinkage vs. Occupancy

It’s important to distinguish shrinkage from occupancy:

• Shrinkage measures the percentage of time agents are unavailable to handle customer interactions.

• Occupancy measures the percentage of time agents spend actively engaged with customers while logged in.

A balance between both metrics is critical—too much occupancy can lead to burnout, while high shrinkage reduces efficiency.

How to Calculate Call Center Shrinkage

The standard formula for shrinkage is:

Shrinkage (%) = (Total Time – Productive Time) ÷ Total Time × 100

Example:

• Total agent time scheduled = 480 minutes (8 hours)

• Productive time spent on calls/chats = 360 minutes

• Shrinkage = (480 – 360) ÷ 480 × 100 = 25%

Industry averages show shrinkage typically ranges between 20% and 35%, depending on business model and workforce policies.

Case Example: Shrinkage in Action

Imagine a contact center with 200 scheduled agents. Due to training, breaks, and unplanned absences, only 150 are available during peak hours. This results in 25% shrinkage.

If staffing is not adjusted, customers experience longer wait times, higher abandonment rates, and lower satisfaction scores.

How to Reduce Call Center Shrinkage

To manage shrinkage effectively, companies need a proactive workforce strategy. Here are proven approaches:

1. Track Shrinkage Regularly

Monitor shrinkage by department, shift, or agent group. Identify trends and recurring causes.

2. Improve Forecasting and Scheduling

Use historical data and analytics to build accurate staffing models. Overstaff slightly during peak hours to absorb unexpected shrinkage.

3. Monitor Adherence to Schedules

Adopt workforce management (WFM) tools to ensure agents stick to planned schedules. Real-time adherence alerts can reduce late logins and extended breaks.

4. Provide Flexible Scheduling Options

Allow agents to swap shifts or request time off in advance. Flexibility reduces absenteeism.

5. Address Unplanned Absences Quickly

Use attendance policies and wellness programs to minimize last-minute call-outs.

6. Reduce System Downtime

Invest in reliable infrastructure and IT support to minimize technical disruptions.

7. Balance Occupancy and Breaks

Avoid overloading agents with back-to-back calls. Balanced occupancy improves productivity and reduces burnout.

Role of Workforce Management in Shrinkage Reduction

A Workforce Management (WFM) system is one of the most effective tools for controlling shrinkage. With features like forecasting, scheduling, adherence monitoring, and real-time reporting, WFM helps managers optimize staffing levels while keeping costs in check.

Thien Tu BPO uses advanced WFM solutions combined with ISO-certified processes to ensure clients achieve high efficiency and consistent service quality.

Why Shrinkage Control Matters

Managing shrinkage is not just about cutting costs—it’s about delivering a superior customer experience. Lower shrinkage ensures:

• Faster response times.

• Better SLA compliance.

• Higher CSAT (Customer Satisfaction) and NPS (Net Promoter Score).

• More engaged and productive agents.

Why Partner with Thien Tu BPO?

With over 20 years of experience in BPO and customer experience management, Thien Tu BPO helps companies reduce shrinkage and improve operational efficiency.

Our expertise includes:

• Workforce Management & Scheduling

• Multichannel Contact Center Solutions

• Back-office Processing

• AI-driven Analytics for Performance Improvement

We support global enterprises across industries with scalable, cost-efficient, and high-quality outsourcing services.

Conclusion

Call center shrinkage is one of the biggest challenges contact centers face—but with the right strategies, it can be minimized. By leveraging accurate forecasting, workforce management tools, and proactive scheduling, businesses can lower shrinkage and improve both agent productivity and customer satisfaction.

Looking to optimize your contact center operations? Partner with Thien Tu BPO for customized outsourcing solutions.

📩 Contact us info@thien.vn