Shrinkage

Shrinkage is the percentage of paid time during which agents are not available to handle calls. It encompasses all the activities that pull agents away from the phone — scheduled breaks, lunch periods, training sessions, team meetings, coaching, system downtime, bathroom breaks, and unplanned absences. Understanding and accurately measuring shrinkage is essential for translating Erlang C staffing calculations into actual scheduling requirements.

How It Works in VICIdial

Shrinkage is tracked in VICIdial through a combination of timeclock data, pause codes, and login/logout timestamps. When agents pause their queue availability for any reason, they should select a pause code that categorizes the absence — such as “Break,” “Lunch,” “Training,” “Meeting,” “Coaching,” or “System Issue.” This data feeds into historical reporting that quantifies time spent in each shrinkage category.

The shrinkage calculation is: (Total Paid Hours - Total Available Hours) / Total Paid Hours x 100. For example, if agents are paid for 8 hours but spend 5.5 hours available for calls (accounting for breaks, lunch, meetings, and other off-phone time), shrinkage is 31.25%. Industry-average shrinkage ranges from 25-35%, though it varies significantly based on break policies, training frequency, and management practices.

Shrinkage has two components: planned shrinkage (scheduled breaks, lunch, training, meetings) and unplanned shrinkage (sick days, tardiness, extended breaks, IT issues). Planned shrinkage is predictable and should be built into staffing models. Unplanned shrinkage is the variable that causes service level volatility and requires buffer staffing to absorb.

VICIdial’s reporting can break down shrinkage by category using pause code data, by time of day, by day of week, and by agent. This granular analysis reveals patterns — perhaps Tuesday afternoon training sessions create a recurring coverage gap, or a specific team has higher-than-average unplanned shrinkage.

Why It Matters

Shrinkage is the multiplier that converts theoretical staffing needs into real-world scheduling requirements. If Erlang C says you need 20 agents available to meet your service level target and your shrinkage rate is 30%, you need to schedule 29 agents (20 / 0.70 = 28.6, rounded up). Underestimating shrinkage is one of the most common causes of chronic understaffing — managers plan for 20 agents and schedule exactly 20, but only 14 are actually on the phones at any given time.

Reducing shrinkage improves efficiency without hiring additional agents. Common strategies include staggering breaks to maintain coverage, scheduling training during low-volume periods, streamlining team meetings, and using VICIdial’s blended campaign capabilities to keep agents productive during brief idle periods rather than pausing for minor tasks.