What Is Shrinkage And Attrition Formula?

What are the 3 main causes of shrink?

Let’s take a look at the four main causes of inventory shrinkage:Shoplifting,Return fraud,Employee theft, and.Administrative error..

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 shrinkage target in BPO?

Shrinkage is the value used to determine the total required staffing levels necessary to meet your business goals. In other words, it’s the amount of “over-scheduling” you must perform in order to have the right number of agents working at any given time of the day.

What is attrition rate mean?

A common attrition rate definition refers to employee or staff turnover, but in a broader sense, attrition rate is a calculation of the number of individuals or items that vacate or move out of a larger, collective group over a specified time frame. Attrition rate is also commonly referred to as churn rate.

What is the formula for calculating 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.

How do you manage attrition and shrinkage?

Top Tips for Improving Contact Centre ShrinkageFactor shrinkage into your staffing requirements. … Avoid inflating the base staffing figure by the shrinkage percentage. … Track unexplained absences closely to maximise productivity. … Forecast down to 15- or 30-minute intervals. … Don’t just write down 10% and keep your fingers crossed. … Don’t flat line shrinkage across the year.More items…•

What does shrinkage mean?

the loss of inventoryShrinkage 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.

What is a shrinkage factor?

1. A percentage in short fall of a planned output amount. 2. a percent of inventory lost due to errors, theft and spoilage or waste.

How do you stop shrinkage?

5 Ways to Stop the ShrinkageBlow Dry Your Roots. When my hair is at least 90% dry, I pull my hair and then blow-dry the roots with medium heat. … Put Your Hair In a High Bun. … Use A Lot of Product. … Wait For Your Hair to Grow. … Embrace it!

How is attrition cost calculated?

Employee turnover cost is calculated by taking your vacant position coverage cost plus cost to fill the vacant position plus onboarding & orientation costs plus the productivity ramp up cost multiplied by the number of employees lost in that position in a given year multiplied by 12 to give you your annual rate.

What does 80% attrition mean?

Attrition rate refers to the percentage of rooms that must be filled in order to avoid paying a penalty. For example, let’s say you make a block of 20 rooms for your wedding. However, only 13 rooms are booked by your guests, and your contract states that your attrition rate is 75%.

How do you calculate shrink in Excel?

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 are the 3 types of shrink?

The Main Causes Of Shrinkage In RetailShoplifting. It’s no surprise to the retail industry that the number one cause of lost profitability is shoplifting. … Employee Theft. Close behind shoplifting, 33% of retail shrinkage is attributed to intentional internal theft. … Administrative Errors. … Fraud. … Operational Loss.

What is the formula of attrition in BPO?

In order to calculate the attrition rate, you just take the number of attritions (or employees who left the company), divided by the average number of employees, and then multiplied by 10. For example, if you had 47 agents leave in a year, with an average of 340 employees, your attrition rate would be 13.82%.

What is shrinkage in call center?

Call center shrinkage is the number of agents actively taking calls divided by the number of agents who are not available for any reason. Those reasons can include: External Shrinkage Factors: Holidays & vacations.