Peanut Butter Raises: How Uniform Pay Increases Could Shape Workforce Expectations in 2026
Nearly half of employers are reconsidering traditional merit-based pay structures. Payscale's preliminary data reveals 44% of organizations may implement flat 'peanut butter raises' in 2026, mirroring Starbucks' 2% across-the-board increase for North American corporate staff last year. This trend reflects growing corporate skepticism about performance-based compensation systems amid economic uncertainty.
The median projected 3.5% base pay increase for 2026 lags behind the 4.1% wage growth job switchers achieved in late 2025. Employers appear to be prioritizing administrative simplicity and perceived equity over performance differentiation, despite potential dampening effects on top talent retention.