Call center shrinkage
Call center shrinkage refers to the portion of paid agent time that is not available for handling customer interactions. In simple terms, it measures the gap between how many hours agents are scheduled to work and how many hours they are actually able to take calls, chats, or messages. Shrinkage is a normal and unavoidable part of running a contact center, but it must be carefully planned for.
Shrinkage includes both planned activities (training sessions, coaching, meetings, breaks, and administrative work) and unplanned events (sick days, late logins, technical issues, or unexpected absences). When shrinkage is not accurately accounted for, customer wait times increase and service levels drop.
How call center shrinkage works
Shrinkage is typically expressed as a percentage. It is calculated by comparing the total number of paid agent hours to the number of hours agents are actually available to handle customer interactions.
For example, if agents are paid for 40 hours in a week but only available for 28 hours of live customer handling, the remaining 12 hours represent shrinkage. In this case, shrinkage would be 30 percent.
Modern workforce management systems track shrinkage at a granular level, separating planned shrinkage (like training) from unplanned shrinkage (like absenteeism). This breakdown is critical for accurate forecasting and staffing decisions, especially in environments with fluctuating demand.
Why shrinkage is a key metric in AI-enabled support operations
Shrinkage directly affects capacity planning. If teams underestimate shrinkage, they will schedule too few agents, leading to longer queues and frustrated customers. If they overestimate shrinkage, they may overstaff, increasing costs without improving outcomes.
In AI-based customer service environments, shrinkage plays an even larger role. AI systems such as AI voice agents and chatbots are often deployed specifically to absorb demand when human availability is constrained. High shrinkage can increase reliance on automation, while low shrinkage allows human agents to handle more interactions directly.
Shrinkage also affects human-in-the-loop workflows. If fewer agents are available than expected, escalations from AI systems may back up, reducing the effectiveness of both automation and human support.
Common drivers of shrinkage in modern contact centers
Shrinkage typically comes from a combination of factors rather than a single cause:
- Training, onboarding, and upskilling programs
- Coaching, quality reviews, and internal meetings
- Paid breaks, lunches, and compliance requirements
- Absenteeism, attrition, and schedule adherence issues
- Technical failures or system downtime
Tracking these drivers separately helps leaders determine whether shrinkage is a people, process, or tooling issue.
Considerations for call center shrinkage
Accurate shrinkage modeling is essential for forecasting, budgeting, and AI deployment decisions. Teams should regularly revisit shrinkage assumptions as channels, tools, and customer behavior evolve.
Shrinkage also needs to be considered when evaluating automation ROI. If AI reduces visible workload but increases hidden human oversight time, the net effect may be smaller than expected.
Correct planning can transform shrinkage from a risk to a strategic input. It allows AI systems and human agents to work together sustainably, maintaining service quality without sacrificing employee well-being.
