← HR Metrics·Compensation & Benefits
401k Participation Rate
Percentage of employees contributing to retirement plans
How it’s computed
COUNT(contributing) / COUNT(eligible)
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“Individuals accumulate pension funds in an attempt to ensure old-age financial security, when that person will not be able to continue with gainful economic employment. Therefore, the goal is to collect funds so that when the retirement comes around there will be enough of a…”
— Compensation Benefit Designmatch 56%
“Stock OptionsSome may confuse ESOPs with stock options, but in reality, the two plans are quite different. In addition to the fact that stock option plans are not defined contribution plans, the differences between these equity reward programs are illustrated in Figure 16.7 .…”
— Worldatwork Handbook Compensationmatch 52%
“There are several variations of defined contribution plans, such as money purchase plans, thrift plans, and 401(k) plans. Over 70% of American workers participate in 401(k) plans, with over $2 trillion invested in 401(k) plans. 401(k) plans are now the most commonly used form…”
— Compensation Benefit Designmatch 51%
Resources: Compensation Benefit Design · Worldatwork Handbook Compensation