Many companies are turning to “peanut butter” pay raises — giving the same modest increase to all employees rather than rewarding individual performance. This trend, highlighted in a recent CNBC report, stems from organizations trying to manage tight budgets and simplify compensation. Experts warn this approach may backfire: by spreading raises evenly irrespective of contribution, employers risk demotivating high performers and losing them to competitors willing to pay for performance. While nearly half of firms still plan merit-based increases, a growing share are considering or adopting these across-the-board raises — a strategy some HR professionals call short-sighted because it can undermine retention and performance culture.
Click here to read the entire article.
