Shrinkage

Term from Call Centers industry explained for recruiters

Shrinkage is a term used in call centers to describe the time when agents are not available to handle customer contacts (calls, emails, or chats). This includes breaks, training, meetings, sick days, or any other activities that take agents away from their primary task of helping customers. It's important for planning how many people are needed to handle expected call volumes. For example, if a call center needs 100 hours of coverage, and there's typically 30% shrinkage, they actually need to schedule about 130 hours worth of staff time to ensure proper coverage.

Examples in Resumes

Reduced Shrinkage rates from 35% to 25% through improved scheduling practices

Managed daily Shrinkage tracking and reporting for a team of 50 agents

Created new workforce management strategies to control Shrinkage levels

Typical job title: "Workforce Management Specialists"

Also try searching for:

Call Center Manager Workforce Manager Operations Manager Resource Planning Manager Contact Center Supervisor WFM Analyst Scheduling Coordinator

Example Interview Questions

Senior Level Questions

Q: How would you develop a strategy to reduce shrinkage in a large call center?

Expected Answer: Look for answers that discuss analyzing patterns, implementing scheduling software, creating clear policies, cross-training staff, and measuring results. Should mention balance between employee satisfaction and operational needs.

Q: How do you calculate the impact of shrinkage on staffing requirements?

Expected Answer: Should explain that if shrinkage is 30%, you need to add 30% more staff to your base requirement. Example: If you need 100 people, with 30% shrinkage you actually need 130 people.

Mid Level Questions

Q: What are the main causes of shrinkage in a call center?

Expected Answer: Should mention planned causes (breaks, training, meetings) and unplanned causes (absenteeism, technical issues, extended calls). Should discuss how each type needs different management approaches.

Q: How do you track and report shrinkage?

Expected Answer: Should discuss daily/weekly tracking methods, use of WFM software, different types of reports, and how to present data to management in a clear way.

Junior Level Questions

Q: What is shrinkage in a call center context?

Expected Answer: Should explain that it's time when agents are not available to handle customer contacts, including breaks, training, meetings, and unexpected absences.

Q: Why is managing shrinkage important?

Expected Answer: Should explain that high shrinkage means needing more staff, higher costs, and possible service level problems. Should mention impact on customer service and budget.

Experience Level Indicators

Junior (0-2 years)

  • Basic understanding of call center operations
  • Ability to track daily shrinkage numbers
  • Understanding of schedule adherence
  • Basic reporting skills

Mid (2-5 years)

  • Shrinkage analysis and reporting
  • Staff scheduling experience
  • Use of workforce management software
  • Understanding of contact center metrics

Senior (5+ years)

  • Strategic workforce planning
  • Advanced shrinkage management
  • Team leadership experience
  • Budget management skills

Red Flags to Watch For

  • No understanding of basic call center metrics
  • Cannot explain relationship between shrinkage and staffing needs
  • No experience with workforce management software
  • Poor understanding of scheduling principles