{"id":4804,"date":"2010-05-06T16:16:38","date_gmt":"2010-05-06T21:16:38","guid":{"rendered":"https:\/\/bhgrealestateblog.com\/?p=4804"},"modified":"2024-12-30T14:34:49","modified_gmt":"2024-12-30T19:34:49","slug":"eoo-effective-office-occupancy-in-a-desk-less-environment","status":"publish","type":"post","link":"https:\/\/bhgrecareer.com\/bebetterblog\/eoo-effective-office-occupancy-in-a-desk-less-environment\/","title":{"rendered":"EOO: Effective Office Occupancy in a Desk-less Environment"},"content":{"rendered":"<p style=\"text-align: justify\">My argument for measuring environmental efficiency in a \u2018desk-less\u2019 environment is through determining \u2018Dollars Retained per Agent\u2019 (DRA) via \u2018Weighted Costs per Agent\u2019 (WCA). By understanding this metric, an EOO Ratio can be calculated. It is important to note that DRA is <span style=\"text-decoration: underline\">not<\/span> calculating \u2018average\u2019 dollars retained per agent, but is rather a retention number specific to each producing sales agent. DRA can be determined in the following manner:<\/p>\n<p style=\"text-align: justify\"><strong>Agent AGCI (Adjusted GCI) \u2013 (Commissions Paid + WCA) <\/strong><strong>= Dollars Retained per Agent (DRA)<\/strong><\/p>\n<p style=\"text-align: justify\">Adjustments to GCI<\/p>\n<p style=\"text-align: justify\">Adjustments to GCI include things such as E&amp;O charged to sale agents, desk fees paid by agents, transaction fees and marketing fees paid by agents and the like. It is a way of \u2018truing-up\u2019 numbers resulting from a given sales agent\u2019s productivity.<\/p>\n<p style=\"text-align: justify\">Weighted Cost per Agent (WCA)<\/p>\n<p style=\"text-align: justify\">Weighted Cost per Agent is determined by weighting the number of months an agent worked during a measured period against total operating costs during that same period, as shown in the example below. It is necessary to have such a weighting system in order to create metrics for newly licensed agents and experienced agents who were hired at some point during the LTM period and as a result, worked less than 12 full months. This view is also helpful in:<\/p>\n<ol style=\"text-align: justify\">\n<li>Assessing the success of training programs, or<\/li>\n<li>Comparing productivity of new and existing agents<\/li>\n<\/ol>\n<p style=\"text-align: justify\">WCA places a value on each sales professional as an individual \u2018profit center\u2019 and thereby presents a superior vantage point for real estate companies.<\/p>\n<p style=\"text-align: justify\">In this example, it is interesting to note that Newer Agent 8, with 8 months worked is profitable to the branch, whereas Agent 7 who was present the entire 12 months is not. This is true even though agent 7 had a higher AGCI. In fact, Newer Agent (9), who earned far less AGCI than did Agent 7, brought very similar net dollars (negative number) to the branch! This would suggest that we have made a very strong new hire with Newer Agent (9), but that Agent 7 needs to be coached toward higher productivity.<\/p>\n<p style=\"text-align: justify\"><strong>Total Operating Cost x {0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} of total months worked by sales agent <\/strong><strong>= Weighted Cost per Agent<\/strong><\/p>\n<p style=\"text-align: justify\"><span style=\"color: #ff0000\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-4833\" title=\"EOO Example\" src=\"https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/05\/EOOExample.jpg\" alt=\"EOO Example\" width=\"540\" height=\"336\" srcset=\"https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/05\/EOOExample.jpg 540w, https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/05\/EOOExample-300x187.jpg 300w, https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/05\/EOOExample-100x62.jpg 100w\" sizes=\"(max-width: 540px) 100vw, 540px\" \/><\/span><\/p>\n<p style=\"text-align: justify\">The clear implication of the preceding argument is that the company leaders will have determined a minimum acceptable DRA for agents to remain viable in their organization. Agents who are achieving this level satisfy the minimum Dollars Retained per Agent requirements and those who fall below that mark are in need of coaching or redirecting.<\/p>\n<p style=\"text-align: justify\">The EOO Ratio is calculated by dividing the number of agents achieving DRA by the total number of agents in the office. Hence for the example above.<\/p>\n<p style=\"text-align: justify\"><strong>7 (Agents Achieving DRA) \/ 10 (Total # Agents) = 70{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} EOO Ratio<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>My argument for measuring environmental efficiency in a \u2018desk-less\u2019 environment is through determining \u2018Dollars Retained per Agent\u2019 (DRA) via \u2018Weighted Costs per Agent\u2019 (WCA). By understanding this metric, an EOO Ratio can be calculated. It is important to note that DRA is not calculating \u2018average\u2019 dollars retained per agent, but is rather a retention number [&hellip;]<\/p>\n","protected":false},"author":141,"featured_media":11570,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,161,251],"tags":[1271,1981,7491,23551,31291,45481,45561],"class_list":["post-4804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage-operations","category-next-generation","category-talent-attraction","tag-agent-productivity","tag-analytics","tag-change-management","tag-leadership-advice","tag-people-management","tag-virtual-agents","tag-virtual-office"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EOO: Effective Office Occupancy in a Desk-less Environment - Better Homes and Gardens Real Estate Be Better Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bhgrecareer.com\/bebetterblog\/eoo-effective-office-occupancy-in-a-desk-less-environment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EOO: Effective Office Occupancy in a Desk-less Environment - Better Homes and Gardens Real Estate Be Better Blog\" \/>\n<meta property=\"og:description\" content=\"My argument for measuring environmental efficiency in a \u2018desk-less\u2019 environment is through determining \u2018Dollars Retained per Agent\u2019 (DRA) via \u2018Weighted Costs per Agent\u2019 (WCA). 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