Call Centre Shrinkage Explained: A Practical Guide for UK Businesses
Call centre shrinkage is one of the biggest challenges facing UK customer service operations. It refers to the time agents are paid for but not actively handling calls. This includes breaks, training, meetings, and even lateness. If left unmanaged, shrinkage can damage efficiency, increase costs, and reduce customer satisfaction.
Let’s explain what shrinkage is, why it matters, and how businesses can reduce it without harming employee morale.
What Is Call Centre Shrinkage?
Call centre shrinkage is the gap between the number of staff scheduled to work and the actual productive time spent on customer interactions.
Shrinkage can include:
- Paid breaks and lunches
- Meetings and coaching sessions
- Training and development hours
- Absenteeism and lateness
- System downtime or technical issues
For UK call centres, shrinkage rates typically range between 30% and 35%. This means that even with a full schedule, a third of paid time is not available for taking calls.
Why Call Centre Shrinkage Matters
High levels of shrinkage create several problems for UK businesses, including:
- Reduced customer satisfaction: Longer waiting times frustrate callers.
- Increased costs: More staff may be required to cover lost time.
- Lower productivity: Agents spend less time handling queries.
- Inaccurate forecasting: Workforce planning becomes less reliable.
When shrinkage is left unchecked, it can impact key metrics, including first contact resolution, customer satisfaction scores, and Net Promoter Score (NPS).
Measuring Call Centre Shrinkage
To manage shrinkage effectively, businesses must first measure it. The formula is straightforward:
Shrinkage Percentage is the Total non-productive time divided by the Total paid time
For example, if agents are paid for 8 hours but spend 3 hours on breaks, training, or meetings, the shrinkage rate is 37.5%.
This calculation allows call centre managers to identify whether staffing levels are realistic and whether improvements are needed in scheduling.
How to Reduce Call Centre Shrinkage
1. Improve Forecasting and Scheduling
Accurate workforce management helps allocate staff based on demand. Using forecasting tools ensures the right number of agents are available during peak hours.
2. Monitor Attendance and Lateness
Absenteeism and late arrivals significantly increase shrinkage. Businesses should track attendance trends and introduce support programmes to help reduce absences.
3. Balance Training and Productivity
Training is essential, but should be planned during quieter periods. Short, focused sessions reduce the impact on daily operations.
4. Enhance Employee Engagement
Motivated agents are less likely to take unnecessary breaks or miss shifts. Recognition schemes and flexible schedules can improve engagement.
5. Use Technology to Minimise Downtime
System failures contribute to shrinkage. Investing in reliable software and providing fast IT support helps reduce downtime.
Call Centre Shrinkage and Customer Experience
Managing shrinkage is not only about cost control. It directly impacts customer experience. When shrinkage is high, callers face long queues, leading to frustration and lower satisfaction scores.
By tackling shrinkage, UK businesses can:
- Shorten wait times
- Increase first call resolution rates
- Improve overall customer experience
- Build stronger loyalty and retention
CabCall Experts: Reducing Shrinkage Through Smarter Services
At CabCall Experts, we specialised services include:
- Inbound call answering
- Taxi dispatch
- Quality assurance
- Digital marketing
- Outsourced accounting
- NEMT call centre services
With our expertise, UK taxi businesses like TakeMe and Compass Taxi can enhance productivity, reduce shrinkage, and deliver better customer experiences. If you’re ready to take your customer service to the next level, contact CabCall Experts today or explore our Facebook page for the latest news.
