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Story summary
- A Payscale report finds that about 9% of organizations currently use evenly distributed “peanut butter” pay increases, with 16% planning to adopt them this year.
- Experts warn that this approach may demotivate high performers because pay no longer reflects performance.
- Managers prefer this method to avoid difficult conversations about merit-based raises.
- The trend raises concerns about long-term retention and employee engagement.
