HR Glossary
Shrinkage
The gap between scheduled and actually available working time, due to leave, training, or absence.
Definition
Shrinkage, common in workforce planning for operations-heavy teams, refers to the percentage of scheduled work time lost to leave, breaks, training, or absenteeism — reducing effective available capacity.
Why It Matters
Accurate shrinkage data is essential for realistic staffing and scheduling in shift-based operations.