1. What is Shrinkage Percentage?

Shrinkage Percentage is a metric used in operations like call centers to measure the percentage of time that is non-productive compared to the total time available. It helps in understanding workforce efficiency and identifying areas for improvement.

2. How Does the Calculator Work?

The calculator uses the Shrinkage Percentage formula:

Where:

• Non-Productive Time — Time not spent on productive activities (e.g., breaks, meetings, training)
• Total Time Available — Total scheduled or available time for work

Explanation: The formula calculates the proportion of non-productive time relative to the total available time, expressed as a percentage.

3. Importance of Shrinkage Calculation

Details: Accurate shrinkage calculation is crucial for workforce management, resource planning, and optimizing operational efficiency. It helps in identifying non-productive time and implementing strategies to reduce it.

4. Using the Calculator

Tips: Enter non-productive time and total time available in hours. Both values must be valid (non-negative, total time > 0, non-productive time ≤ total time).

5. Frequently Asked Questions (FAQ)

Q1: What is considered non-productive time?
A: Non-productive time includes breaks, meetings, training, administrative tasks, and any other time not spent on core productive activities.

Q2: What is a good shrinkage percentage?
A: A lower shrinkage percentage indicates higher efficiency. Industry standards vary, but typically, a shrinkage percentage of 20-30% is common in call centers.

Q3: How can I reduce shrinkage?
A: Strategies include optimizing schedules, reducing unnecessary meetings, improving training efficiency, and minimizing administrative tasks.

Q4: Can shrinkage be negative?
A: No, shrinkage percentage cannot be negative as it is a ratio of non-productive time to total time, both of which are non-negative.

Q5: Is shrinkage the same as absenteeism?
A: No, absenteeism is a subset of shrinkage. Shrinkage includes all non-productive time, while absenteeism specifically refers to time off due to absence.