What does Shrinkage refer to in a workforce management context?

Shrinkage in a workforce management context refers to the time during which agents are not available to handle calls despite being on the payroll. This includes time away from their desks due to breaks, training sessions, meetings, or any other non-productive activities. Understanding shrinkage is crucial for workforce management because it helps organizations accurately assess how many agents are genuinely available for service at any given time, allowing for better scheduling and fulfilling service level agreements.

By identifying this aspect, businesses can manage staffing levels more effectively, ensuring they have sufficient coverage to meet demand while taking into account the time agents are unavailable to respond to customers. It highlights the need to account for more than just scheduled hours, incorporating the realities of agent availability into workforce planning.