← HR Metrics·Compensation & Benefits
Equity Multiplier
Per-employee equity weighting (by performance rating) used to allocate the unit equity budget.
How it’s computed
equity_rating_multiplier[performance_rating]
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.
“See also shareholders’ equity.[C4, C15, C17, T1, T2, T6, T9, T11, GR1, GR4, GR7]Equity investmentA financial investment that results in an ownership position and no fixed return or guarantee of the principal amount.[B2, C6, C6A, T11]Equity theory According to this principle, an…”
— Worldatwork Handbook Compensationmatch 55%
“See also Teams allocations based on classification of, 40 benefits, 487 compensation issues for local national, 498 –500 contributions, 7 , 40 engagement of, 145 , 212 , 454 –456 pay element variations with class of, 496 perceptions from country to country, 21 with performance…”
— The Compensation Handbook (6th ed.)match 54%
“Because a not-for-profit corporation cannot issue stock, the equity-based rewards programs it may offer are limited to those that do not require the use of company stock (e.g., stock alternatives, 403[b]). COMPENSATION PLANS USING EQUITYEquity rewards that may be used as part of…”
— Worldatwork Handbook Compensationmatch 52%
Resources: Worldatwork Handbook Compensation · The Compensation Handbook (6th ed.)