Shrinkage, Attrition & Retention : Concept, Formulas & Best Comparative Analysis

Shrinkage, Attrition & Retention : Concept, Formulas & Comparative Analysis

Shrinkage, Attrition & Retention : Concept, Formulas & Comparative Analysis - Knowledge Showledge
Shrinkage, Attrition & Retention : Concept, Formulas & Comparative Analysis – Knowledge Showledge


The term Shrinkage is largely well-defined as the fraction or percentage of time when scheduled agents aren’t existing to handle customer communications or interactions. Conceptually, this is the time that “shrinks” from the schedule. Shrinkage can consist of planned proceedings, such as breaks, paid time off, training, team assemblies, coaching sessions, or further actions. It can also include unplanned events such as absenteeism, retardation or agent escape.

This may also include times when agents do not adhere to their planned schedule. It is the percentage of the time when agents are not where they are supposed to be or are not doing the activity they were scheduled to do. For example, if an agent is expected to handle a call but is unavailable, they are out of schedule.

There are two types of shrinkage:

  • Have a plan that means people have already informed you that they will not come to office today, which you already know.
  • The second is unplanned, meaning ordinary people suddenly on vacation.

Let’s assume,

Team total = 20

Planned leave 2. Is

Unplanned leave 4

Planned formula =2/20=0.1. Is

The unplanned formula is =4/20=0.2

Total: 0.3 if you enter percentage you will get 30% for the day

Shrinkage on adding both together = 30%


Attrition is a component of contact center shrinkage. It is the rate at which the agent workforce is reduced through voluntary (resignation, transfer, promotion, job loss, etc.) or involuntary (termination, disability, sick leave, layoff, etc.)

There is a clear difference between the two.

Shrinkage destroys the percentage of time agents spend productively handling customer interactions, but it is a variable that can be managed, to some extent, by making real-time adjustments to the schedule and issuing reminders so that the agent Become more aware of your need to change activities.

Attrition, instead, lessens the definite number of agents available to be scheduled. Given the considerable amount of time required to recruit, hire, train and on-board agents, the contact center could have a more significant and costly impact.

With several other contact centre metrics, the formularies for computing shrinkage and attrition differ. To come up with a formula, you need to start by determining what is included or excluded from the calculation. Then you have to define what you are trying to measure. For attrition, it can be yearly attrition, monthly attrition, progressing or rolling attrition grounded on period of months, attrition for a specific subcategory of agents, etc.

Some common formulas for calculating attrition are:

Net Agent Attrition Rate: Total number of agent exits / Total number of employees * 100

Actual Agent Attrition Rate: Involuntary exit / Total number of employees * 100

Annual accident Rate = (total number of agents / average number of agents during the period) * (number of months in 12 / period)

The meaning of attrition: Those who resigned out of concern or fled without Reporting.

Formula: Number of Attrition/ (Month Opening + Closing Month)/2*100

Let’s assume,

Opening -20


=4/ (20+16)/2/100 = 5.5% attrition

Shrinkage rates are used to help determine the number of additional employees needed to ensure that the actual number of agents needed to meet service level objectives actually exists. It is difficult to develop a formula that can be included in shrinkage calculations: adherence, absenteeism, occupancy/usage rates, etc. There is also in excess of one method to computing shrinkage, centered on either linear or inverse formulas.

To determine a formula for shrinkage, you need to start by defining the variables to be included in the calculation and then determine how much time is associated with each variable. All employees’ management solutions compute shrinkage in such a way that it considers this while creation of agent schedules.

Reasons Why an Employee Leaves (Attrition) an Organization

  • Monetary factors
  • Lack of good working condition-
  • No Flexible work schedules.
  • Lack of respect-
  • Very Few Supportive colleagues:
  • Organization is more concern toward business
  • Increase in favoritisms
  • Employee desires pride in everything
  • Lack of appreciation
  • Lack of challenges in job
  • The employment or place of work was not as anticipated
  • The Mismatch Between Job and Person
  • Too Little Coaching and Feedback
  • Lack of support
  • Stress From Overwork and Work-Life Imbalance
  • Loss of Faith and Confidence in management
  • Less frequency in giving rewards

Effect on Organization If Employees Exit

  • Loss of productivity
  • Replacing qualified employees
  • Reduced retention generates a “revolving door” beliefs inside the business sinking spirits and confidence.
  • Cost of overtime or temporary help
  • Recruiting costs
  • Interviewing costs
  • Time spent in orientation

What is Talent Retention?

Talent retention is a process in which the employees are stimulated to continue with the business for the maximum period of time or until the accomplishment of the project. Employee retention is useful for the business other than the employee.

Importance of Employee Retention

  • The cost of turnover
  • Loss of company Knowledge
  • Interruption of customer Service
  • Turnover leads to more turnover
  • Goodwill of the company
  • Regaining efficiency

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