Big Business's Latest Blunder: The Rise of the "Peanut Butter Raise"
As 2026 approaches, employees are bracing themselves for another round of across-the-board pay increases, affectionately dubbed "peanut butter raises" by compensation software provider Payscale. This trend has taken hold among more than 40% of organizations worldwide, with top performers anticipating even bigger boosts.
The statistics are staggering: a whopping 56% of top-performing companies plan to give their employees a significant salary hike this year. But what's behind this seemingly generous move? In reality, it's just another example of big business's laziness when it comes to employee evaluation and reward.
Critics argue that these "peanut butter raises" are not only uncalled-for but also uninspired. By doling out identical increases to all employees, companies are failing to recognize individual contributions or acknowledge hard work. It's a slapdash approach that leaves workers feeling like they're just going through the motions.
The issue runs deeper than just pay packets. Performance reviews, which should be a chance for managers to provide constructive feedback and guidance, have become a farce in many organizations. With companies too busy chasing profits to invest time in meaningful evaluations, employees are left with little more than a checkbox exercise to fill out.
This approach is especially galling when it comes to top performers. By lumping them together with lower-achieving colleagues, businesses are missing an opportunity to acknowledge and reward true excellence. A more nuanced approach would recognize individual strengths and weaknesses, providing personalized feedback and incentives that motivate employees to excel even further.
The trend towards "peanut butter raises" is a symptom of a larger problem: the lack of trust between employers and employees. When workers feel like their voices are not heard or their contributions recognized, they're more likely to become disenchanted with their jobs.
So what's the alternative? Implementing regular, targeted feedback sessions that provide specific goals and incentives can make all the difference. By recognizing individual achievements and offering tailored rewards, businesses can foster a culture of growth and collaboration – rather than simply going through the motions.
As Gene Marks so aptly puts it: "Raises matter... but so does regular feedback. Don't be lazy about either." The time has come for big business to rethink its approach to employee evaluation and reward. Anything less is just peanuts compared to the potential benefits of a truly empowered workforce.
As 2026 approaches, employees are bracing themselves for another round of across-the-board pay increases, affectionately dubbed "peanut butter raises" by compensation software provider Payscale. This trend has taken hold among more than 40% of organizations worldwide, with top performers anticipating even bigger boosts.
The statistics are staggering: a whopping 56% of top-performing companies plan to give their employees a significant salary hike this year. But what's behind this seemingly generous move? In reality, it's just another example of big business's laziness when it comes to employee evaluation and reward.
Critics argue that these "peanut butter raises" are not only uncalled-for but also uninspired. By doling out identical increases to all employees, companies are failing to recognize individual contributions or acknowledge hard work. It's a slapdash approach that leaves workers feeling like they're just going through the motions.
The issue runs deeper than just pay packets. Performance reviews, which should be a chance for managers to provide constructive feedback and guidance, have become a farce in many organizations. With companies too busy chasing profits to invest time in meaningful evaluations, employees are left with little more than a checkbox exercise to fill out.
This approach is especially galling when it comes to top performers. By lumping them together with lower-achieving colleagues, businesses are missing an opportunity to acknowledge and reward true excellence. A more nuanced approach would recognize individual strengths and weaknesses, providing personalized feedback and incentives that motivate employees to excel even further.
The trend towards "peanut butter raises" is a symptom of a larger problem: the lack of trust between employers and employees. When workers feel like their voices are not heard or their contributions recognized, they're more likely to become disenchanted with their jobs.
So what's the alternative? Implementing regular, targeted feedback sessions that provide specific goals and incentives can make all the difference. By recognizing individual achievements and offering tailored rewards, businesses can foster a culture of growth and collaboration – rather than simply going through the motions.
As Gene Marks so aptly puts it: "Raises matter... but so does regular feedback. Don't be lazy about either." The time has come for big business to rethink its approach to employee evaluation and reward. Anything less is just peanuts compared to the potential benefits of a truly empowered workforce.