Many employers are ditching merit-based pay bumps in favor of ‘peanut butter raises’

Professionals have long been taught a simple formula for career success: work hard, outperform your peers, and bigger paychecks will follow. But this year, employers are planning to reward their star staffers differently; instead of factoring in merit, more companies are considering general pay hikes spread out evenly, dubbed the “peanut butter raises” trend. 

Around 44% of employers plan to roll out uniform, across-the-board wage bumps in 2026, according to a new Payscale report. About...