Actual Deferred Percentage (ADP)

Actual Deferred Percentage, or ADP, measures how many eligible employees are actually putting money into a deferred compensation plan, like a 401(k), and how much. You get the number by adding up each eligible employee's individual deferral percentage and dividing that total by the number of eligible employees.

What the number tells you

ADP shows how well the retirement plan is actually landing with employees. A low ADP usually means people aren't engaging with the plan, whether that comes down to poor communication, low trust in the plan, or the plan design itself. Tracking it over time helps a company catch that gap early and act on it, whether through better plan education or a redesign of the employer match.