Raise Season 2026: The Rise of 'Peanut Butter Raisings' as Companies Go Flat
As the job market continues to navigate inflation and economic uncertainty, employers are adopting a new strategy for salary increases that may seem counterintuitive - flat-rate "peanut butter" raises. This trend is on the rise, with 44% of companies planning or considering implementing these across-the-board pay boosts.
The idea behind this approach is to offer employees a steady percentage increase in pay, regardless of their performance. In 2026, workers can expect an average raise of just 3.5%, matching the rate seen last year. While some argue that merit-based raises are still the best practice, concerns about their subjectivity and potential for bias have led many companies to rethink this approach.
The problem with flat-rate raises is that they may discourage top performers from putting in extra effort if they don't feel they'll be rewarded accordingly. This can lead to a lack of motivation among employees who are driven by more than just basic compensation. On the other hand, employers argue that these increases simplify the administration process and can help reduce costs associated with performance-based raises.
Despite its drawbacks, nearly half (48%) of companies still plan to implement raises based on individual performance, while 8% remain unsure about their approach. However, many organizations are exploring alternative methods, such as bonuses or promotions, to incentivize top performers.
The peanut butter raise phenomenon is a response to the economic climate and the desire for simplicity in compensation structures. As inflation continues to affect workers unevenly, companies are looking for ways to adapt without exacerbating existing inequalities. While it's unclear whether this trend will stick, one thing is certain - employees should be aware of their company's plans for 2026 and consider negotiating their own raises accordingly.
In essence, the "peanut butter raise" represents a shift in the way companies approach compensation, with some opting for simplicity over traditional performance-based raises. As the job market continues to evolve, it will be interesting to see whether this trend gains traction or if companies return to more nuanced approaches.
As the job market continues to navigate inflation and economic uncertainty, employers are adopting a new strategy for salary increases that may seem counterintuitive - flat-rate "peanut butter" raises. This trend is on the rise, with 44% of companies planning or considering implementing these across-the-board pay boosts.
The idea behind this approach is to offer employees a steady percentage increase in pay, regardless of their performance. In 2026, workers can expect an average raise of just 3.5%, matching the rate seen last year. While some argue that merit-based raises are still the best practice, concerns about their subjectivity and potential for bias have led many companies to rethink this approach.
The problem with flat-rate raises is that they may discourage top performers from putting in extra effort if they don't feel they'll be rewarded accordingly. This can lead to a lack of motivation among employees who are driven by more than just basic compensation. On the other hand, employers argue that these increases simplify the administration process and can help reduce costs associated with performance-based raises.
Despite its drawbacks, nearly half (48%) of companies still plan to implement raises based on individual performance, while 8% remain unsure about their approach. However, many organizations are exploring alternative methods, such as bonuses or promotions, to incentivize top performers.
The peanut butter raise phenomenon is a response to the economic climate and the desire for simplicity in compensation structures. As inflation continues to affect workers unevenly, companies are looking for ways to adapt without exacerbating existing inequalities. While it's unclear whether this trend will stick, one thing is certain - employees should be aware of their company's plans for 2026 and consider negotiating their own raises accordingly.
In essence, the "peanut butter raise" represents a shift in the way companies approach compensation, with some opting for simplicity over traditional performance-based raises. As the job market continues to evolve, it will be interesting to see whether this trend gains traction or if companies return to more nuanced approaches.
? I mean, doesn't that kinda defeat the purpose of having raises in the first place? And isn't it a bit... bland? 
I mean, what about people who are all-in on their work and deserve more than just a pat on the back for showing up every day? 
So, now you're telling them to just suck it up and take a flat raise because that's what the company wants? 
It doesn't seem very fair to me...
. And yeah, top performers might get bored with that kinda thing. companies should be incentivizing people to put in the work, not just paying them the same 
And what about those who are struggling financially? A flat rate just doesn't cut it anymore. I think this trend is gonna stick around, but we'll see how it plays out in the long run... 
i mean its cool that companies are looking for ways to simplify the admin process but come on, cant we have some nuance in this compensation thingy? flat rate raises just seem so... basic 
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Companies are literally cutting corners by ditching merit-based raises and opting for the "peanut butter" approach because it's easier. I'm sure the 3.5% raise will be, uh, super motivating for anyone who's just trying to make ends meet. 
. I've seen some colleagues who have taken on more responsibilities just to keep up with their workload, but maybe they don't get a raise even if they're doing great work? That's kinda frustrating 
.
i mean its nice in theory but i feel like it might actually hurt the top performers who r all about gettin that extra benjamins 
. But at the same time, I'm not sure if it's the right solution. We need to keep having these conversations about what makes sense in the workforce, you know?
. I mean, 3.5% ain't too shabby, but it's not exactly gonna set my heart on fire either. The problem is, when everyone gets the same amount of peanut butter, nobody really feels like they're getting extra sauce, if you know what I mean 
.
. Anyway, I hope employees can negotiate for more than just peanuts next year... maybe some actual sauce?