Showing posts with label shrinkage. Show all posts
Showing posts with label shrinkage. Show all posts

Wednesday, April 9, 2014

Cutting Contact Center Costs by 20% – in 2 Easy Steps

If your contact center is still using spreadsheets, you might lose money. Two of the key drivers for cost savings are schedule adherence and optimization of daily agent rituals like breaks and lunches. Spreadsheets are extremely limited in the impact they can have on these crucial challenges.

Schedule Adherence
With spreadsheets only limited spot-checking is possible. When you can’t monitor adherence in real time, there is bound to be higher shrinkage and either over- or understaffing. Result? Missed service levels, and wasted resources. By switching from spreadsheets to workforce management software, real time adherence and monitoring is possible. That restores service levels to projected levels, while reducing shrinkage by as much as 15 minutes per agent day. You can even get alerts on your mobile device if agents are out-of-adherence based on custom thresholds. 

Optimizing Downtime
How managers schedule lunches and approved breaks, and how well agents adhere to the time allowed for them, can have a tremendous impact on staffing costs and productivity. At most call centers, these shrinkage rates fall somewhere between 20% and 35% with an effective WFM solution, depending on the size of the business. And when shrinkage rates fall, productivity and profits increase.

When workforce management software is deployed in a way that increases schedule adherence and optimizes downtime, the savings to an average call center can add up to 10% or even 20%.

Find out more in this customer case study and learn how a contact center of a credit union reduced costs and improved service levels with workforce management software.

Sunday, February 2, 2014

15 Tips on Contact Center Scheduling

One of the call center manager’s most important tasks is to create a schedule that balances agent needs vs. call center capabilities, while accounting for such variables as shrinkage and exceptions.

Easier said than done? Not necessarily – the right workforce management system streamlines the process and provides more consistent, accurate data.

If scheduling is still an issue, check out these quick tips:
  1. Don’t use spreadsheets – they are incapable of producing an optimized call center schedule. 
  2. Accurate scheduling starts with accurate forecasting.
  3. Track both call activities and non-call activities for better scheduling.
  4. Make sure all scheduling procedures are clearly delineated among agents, supervisors and management.
  5. Test schedule accuracy with simulations and dry-run scenarios.
  6. Build some flexibility into schedules so changes can be made on the fly.
  7. Take agent preferences into account – if agents can work the shifts they prefer, they will likely do a better job. 
  8. Make sure you are using sufficient ACD data (at least one year) for schedule creation. 
  9. Build in a shift-swapping procedure that is easier for agents to utilize, and easier for management to monitor.
  10. Incorporate agent skill levels and specialties into schedule creation. 
  11. Try this formula for calculating schedule adherence: [phone time + other work related activity time] / ([shift time] - [lunch/dinner] - [break] + [exception time] + [overtime]) = schedule adherence
  12. Personally address agent issues such as tardiness and extended lunch breaks so they do not become habitual, and have a detrimental impact on scheduling. 
  13. Take weather conditions into account when creating schedules, as they can impact both call volume and agent availability. 
  14. List the 3 greatest challenges to schedule adherence at your contact center, then meet with agents and supervisors to address how these challenges can be resolved. 
  15. Choose a Workforce Management solution that gathers and provides the necessary scheduling information through dashboards that are clear and concise.
Fore more details, please download our Contact Center Scheduling Tips whitepaper.

Tuesday, January 8, 2013

What is call center shrinkage and how to minimize it

What is call center shrinkage?
One of the most important concepts in schedule adherence is shrinkage. Shrinkage can be defined as the time for which people are paid during which they are not available to handle calls.
There are many reasons that can cause shrinkage - and it has to be taken into account when scheduling the required number of agents to meet call volumes. But the truth is that most companies badly under-estimate the sheer volume of shrinkage that besets their call centers. This comes about due to a host of potentially hidden areas of shrinkage. Many managers keep their eye on several of these, but few are able to stay on top of all of them: lateness, talking to associates, personal calls and emergencies, leaving early and taking longer breaks. The bottom line on shrinkage is the amount of minutes per day that agents are being paid to be on the phone when they are not actually working or available to receive calls or work on customer related issues.

How to track and manage shrinkage?
Shrinkage can be a major factor in failing to meet service level targets. Call centers that take shrinkage parameters into account in their forecasting and scheduling typically achieve higher service levels at lower operating costs. They often do that by including all call related activities into the forecast and schedule planning process. Here is an example of how to track and manage shrinkage as part of the workforce scheduling process:

what is call center shrinkage

For more information about shrinkage, please also read the following two blog posts:
In addition, you can download our whitepaper about tracking and improving schedule adherence - it should provide some valuable insights into the relationship between shrinkage and agent adherence.

Thursday, November 17, 2011

Important call center metrics: Shrinkage

What's shrinkage?
Shrinkage is the time (or percentage of time) agents are not productive due to breaks, meetings, training, vacation, illness, absenteeism, etc. Most of these events can be build into the schedule, however there is one aspect of shrinkage that cannot be really planned for and it is related to adherence. Adherence is a measurement of the time agents are scheduled to work compared to the time they actually work. If agents leave early, start later or take longer breaks than specified in their schedule, it causes shrinkage that has an immediate impact on service levels and other call center metrics due to under-staffing.

How to reduce shrinkage?
Well, it's not realistic to totally eliminate "unplanned" shrinkage, however, in most cases in can be reduced to an acceptable level. One major reason for "unplanned" shrinkage is out-of-adherence. Often, call centers don’t have the necessary visibility into what happens at any moment in time and what is supposed to happen based on the published schedule. If you are still struggling with adherence issues, please read this educational whitepaper “Strategies for improving call center schedule adherence", and you will learn about proven practices on schedule adherence that have resulted in increased availability and reduced shrinkage.

Tuesday, May 31, 2011

Call center shrinkage - why does it get more difficult to manage?

The increasing complexity of call center configurations with multiple locations, many time zones, more demanding customer interactions, and new communication channels make it more difficult to manage shrinkage. You cannot any longer manage the shrinkage in today’s complex centers just by standing up and looking out across your center or using a manual/spreadsheet based approach. Here are some of the challenges centers need to overcome:
  • Distributed call centers and home agents make it more difficult to manage and track breaks, attendance, exceptions, etc.
  • Multiple communication channels (phone, email, chat, social media, etc.) make it more difficult to manage shrinkage without appropriate tools to forecast, schedule and track adherence for each channel.
  • Some call centers have no effective way to forecast and schedule non-call activities such as breaks, meetings, unplanned discussions – resulting in shrinkage.
Therefore, shrinkage becomes more of an issue for call centers that don’t leverage WFM solutions. Usually, they don’t have the necessary visibility into what happens at any moment in time and what is supposed to happen based on the published schedule. Learn more about how to reduce shrinkage by watching the on demand webinar "Strategies for improved call center schedule adherence". In this educational webinar, industry expert Penny Reynolds from the The Call Center School, shares proven practices on schedule adherence that have resulted in increased availability and reduced shrinkage.

Wednesday, November 17, 2010

Call Center Scheduling Tips: #2 Keep track of your shrinkage

Many companies underestimate the sheer volume of shrinkage. Here are two suggestions on how to reduce shrinkage:

1. Increase forecast and schedule accuracy by including all activities into your schedule:
  • Call time and after work related to calls
  • Outbound if triggered by inbound calls
  • Chat (if important to your business)
  • Breaks, lunch
  • Training
  • Absenteeism
  • Meetings
  • Admin or research work
  • Correspondence
  • Emails
  • Outbound calls
  • Other unproductive time
2. Monitor schedule adherence and work with your agents to improve over time
  • Monitor in real-time
  • Run reports and share with the call center team

Monday, October 11, 2010

Call center scheduling - keep track of your shrinkage

Many companies underestimate the sheer volume of shrinkage (paid time but not taking calls). For example, in a 30 agent contact center 20 minutes of out of adherence status per agent equates to 10 hours per day in shrinkage. If those agents are being paid $12 per hour plus benefits, equaling $15 per hour, you would be losing $150 per day, $750 a week or $39,000 per year.

While it is not possible to recover all lost time, imagine you can reduce shrinkage from 20 to 10 minutes resulting in a $20,000 savings alone, plus improved service levels. That is only the tip of the iceberg if you also consider lost sales due to shrinkage, which again, can easily add up to hundreds of thousands of dollars per year.

How can you reduce shrinkage? There are three key elements involved:
  • Create a better match to call volume with agents’ availability;
  • Increase forecast and schedule accuracy by including additional parameters;
  • Monitor and improve schedule adherence, if possible in real-time.

Friday, May 7, 2010

Call center scheduling: Keep track of your shrinkage

Many centers underestimate the sheer volume of shrinkage (paid time but not taking calls). For example, in a 30 agent contact center 20 minutes of out of adherence status per agent equates to 10 hours per day in shrinkage. If those agents are being paid $12 per hour plus benefits, equaling $15 per hour, you would be losing $150 per day, $750 a week or $39,000 per year. While it is not possible to recover all lost time, imagine you can reduce shrinkage from 20 to 10 minutes resulting in a $20,000 savings alone, plus improved service levels. That is only the tip of the iceberg if you also consider lost sales due to shrinkage, which again, can easily add up to hundreds of thousands of dollars per year. How can you reduce shrinkage? There are three key elements involved:
  • Create a better match of actual call volume with agents’ availability
  • Optimize schedule by including all relevant parameters such as breaks, training, etc.
  • Improve schedule adherence by educating your agents, monitoring performance and providing incentives.