What is Shrinkage?
When it comes to hiring, we sometimes overlook the essential elements to build a thriving, joyful, and well-informed workforce. This means granting them some well-deserved breaks (I know, right?), providing training, and keeping them in the loop. Staffing calculations are undoubtedly influenced by workload, but what about the other crucial factors at play? Have you noticed that you're always just a step away from meeting your hiring needs? Well, fret not! This nifty calculator should lend you a hand in that predicament.
Shrinkage calculates the amount of time employees spend on activities that are paid but not their primary function. For example, paid employee training is a great example of staff shrinkage. So are breaks and team meetings. Lunch, as it is unpaid, is not included as part of shrinkage (also called staff shrinkage).
The questions on your right will help you define your staff shrinkage. You can run ideal scenarios for how you'd like to see time spent within your team. At one point, normal shrinkage was anywhere from 15-30%, but the world is your oyster!
Also, this is just a calculator. The information you enter here is NOT saved or stored.
Click here to watch a short explainer video on Shrinkage
Answer these questions, and we'll calculate shrinkage for you.
How many people do you need?
If you think you need more help because of a lot of customer questions, this calculation can help. You can figure out how many extra people your business needs. First, estimate how much work needs to be done on by channel. Keep in mind this estimate assumes each person works only one channel. If your team does more than one channel at once, you may need to increase the staff shrinkage number. Calculate the shrinkage number if you haven't already and enter it here if needed (even zero, thought not recommended).
What's the best you can do?