Understanding Shrinkage: How Do You Calculate and Manage It for Better Efficiency?

Paritosh_Parekh
How to Calculate and Control Shrinkage

To calculate shrinkage, you can use the formula:

\[ \text{Shrinkage Percentage} = \left( \frac{\text{Total Shrinkage Hours}}{\text{Total Worked Hours}} \right) \times 100 \]

To control shrinkage, you can implement strategies such as improving scheduling accuracy, providing adequate training to employees, monitoring and analyzing shrinkage data regularly, and addressing any underlying issues causing shrinkage. By effectively managing shrinkage, businesses can enhance productivity and operational efficiency.
nashbramhall
Dear Paritosh, do you work in a BPO or are you a student trying to find information for an assignment? In either case, it would have saved Dinesh Divekar's time if you had posed the question giving the scenario at the outset.

If you had only searched the web, you would have found links such as How to Calculate Shrinkage in a Call Center | Chron.com at https://www.google.co.uk/#q=bpo+shrinkage+formula.

Hence, I use this opportunity to appeal to members that we should search first and then seek clarification by giving the full scenario and what we have already done and found about our query.
kanika kapoor
Shrinkage in Retail: A Brief Overview

Shrinkage in retail is always calculated based on the selling price of the merchandise. There are different types of shrinkage, such as pilferage and theft.

Please share the industry type so that the same can be explained better. 

All the best.
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