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Shrinkage | Part 1 | In-Office Shrinkage (IOS)

Updated: Dec 31, 2021

Can we work for long hours continuously? Can we work 24 X 7?
The answer is surely NO!!!

Then how do our organization plan our day? Let's take a look:

Any organization plans an employees' day with different activities like work time, breaks, meetings and so on. This is collectively described as Shrinkage.

Let's understand what is Shrinkage?
Shrinkage is any time off from work or the time where an employee is not productive
OR just simply the time when an employee is not working.

There are two components in Shrinkage;

  1. In-Office Shrinkage - This is when an employee is available at the workplace/home office but not productive.

  2. Out-Office Shrinkage - This is when an employee is not available at all for that day.

In this session, we will take a deep dive to understand In-Office Shrinkage.

In-Office Shrinkage categorizes as per following components:

  • Breaks - Every employee is entitled to get short breaks, lunch breaks or dinner breaks or even bio breaks during the course of time spent at work

  • Process/Product Training - In lieu to rigorous market evolution, every change with respect to certain process or product specifics need to be updated to all employees directly or indirectly associated with that process or product.

  • Coaching - Employees at every point needs to be supported with right direction and documentation at align their objectives to match the company's vision and mission and hence, coaching will play an integral part for a successful customer experience

  • Feedback - Employees need to be assessed to ensure the high class quality execution. This play a vital role in developing brand name for a company. Hence, these session are very important from business point of view.

  • One-to-one Meetings - These meetings are conducted periodically (Monthly, quarterly or yearly) with employees to discuss performance, future career aspirations and promotions.

Role of a WFM Employee:

A WFM employee looks at the volume trend and plans these times in an employees' schedules.

Over a period of time, an analysis is done to understand what are standard shrinkage components. These standards are then baked into future resource planning and revisited at certain time intervals to confirm we are closer to the actuals.


In-Office Shrinkage is dependent on Country's labor laws for break components.

Thus, in-office shrinkage differs by location and by each process or functions or department.

Shrinkage is also known as leakage in productive time.

Do it yourself!

Can you think of any other components which can be part of In-Office Shrinkage?

Please write in the comments below:

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