Quick Answer: What Is BPO Shrinkage?

What is AHT formula?

To calculate average handle time, add total talk time with total hold time, then add ACW.

Lastly, divide that by the total number of calls to get the AHT.

Calculating AHT.

(Total talk time + total hold time + after call work time) / total number of calls..

What is Utilisation in BPO?

Call center agent utilization is the percentage of time an agent spends on handling contacts and customer interactions or handling contact-related work. It measures how much time agents who are logged into the queue spend handling customers and how much time they are being paid to work in the call center.

What is employee shrinkage?

Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage, and cashier error. Shrinkage is the difference between recorded inventory on a company’s balance sheet and its actual inventory.

How can we prevent shrinkage in BPO?

Here are four tips to handle shrinkage and blunt its negative impacts.Track it. To track schedule adherence, many call centers deploy employee tracking applications that let users log in and out as they start and end their shift, respectively. … Monitor absenteeism.Keep employees engaged. … Reward productive agents.

What is Excel shrinkage?

In retail terms, shrinkage refers to a company’s percent loss resulting from damage, product expiration and theft of unsold products. … You can calculate retail shrinkage in Excel by dividing the value of goods lost to shrinkage by the total value of goods that are supposed to be in the inventory.

What is a good shrink percentage?

The average shrink rate – your shrink amount defined as a percentage of your sales – was 1.44 percent nationally, but almost one in four retailers reported a shrink of 2 percent or higher.

What is the meaning of shrinkage in BPO?

Shrinkage is a term that is broadly defined as the percentage of time that scheduled agents are not available to handle customer interactions. … Shrinkage can encompass planned events, such as breaks, paid time off, training, team meetings, coaching sessions, or other activities.

How do you control shrinkage?

Understanding how shrinkage happens in retail stores is the first step in reducing and preventing it.Shoplifting. … Employee Theft. … Administrative Errors. … Fraud. … Operational Loss. … Implement Checks and Balances. … Install Obvious Surveillance and Anti-Theft Signage. … Use Anti-Shoplifting Devices: Security Tags.More items…•

What is KPI in BPO?

Introduction to Key Performance Indicators (KPIs) Key performance indicators is the term for a type of performance metric used to evaluate how a company is progressing towards their business goals. It is one of the efforts businesses use to measure productivity using trackable numbers.

What is shrinkage factor?

Percentage by which an output falls short of the estimated or planned output. Percentage of the total inventory by which a loss due to counting or recording errors, or from pilferage, spoilage, theft, or wastage occurs.

How do you calculate shrinkage?

Divide the amount of shrinkage by the original size to find the shrinkage rate. In the example, divide 2 by 8 to get 0.25. Multiply the shrinkage rate by 100 to find the shrinkage as a percentage. In the example, multiply 0.25 by 100 to get 25 percent.

What is shrinkage percentage in call center?

Shrinkage is another way of expressing what used to be called Utilisation. Utilisation is simply the number of hours that employees are available to work on their primary task (measured hours), divided by the total paid hours. So a Shrinkage Figure of 30% equates to a Utilisation figure of 70%.

How is occupancy calculated in BPO?

Calculating Occupancy This is called the “total handling time”. … Once the contact centre has calculated these figures, it can then simply divide the number calculated for “total handling time” by the figure calculated for “total logged time” and multiply the result by 100, to find a percentage occupancy.

What are the 3 main causes of shrink?

There are three main sources of inventory shrinkage in retail:Shoplifting. The number one source of shrinkage for a retail business is, perhaps unsurprisingly theft by consumers themselves. … Internal/employee theft. … Paperwork errors.