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"Peanut butter" pay raises are out, as employers shift to merit hikes
United States🏛️ PoliticsCenter4 hr. ago

"Peanut butter" pay raises are out, as employers shift to merit hikes

CBS News reports that more companies are moving away from 'peanut butter'-style pay raises, which provide uniform increases to all employees, and instead are adopting merit-based compensation strategies for top performers. According to a Payscale survey of over 1,300 HR professionals, only 32% of employers plan to offer across-the-board raises in 2027, down from 36% in 2026. The average planned base pay increase for 2027 is 3.5%, slightly higher than the 3.4% increase in 2026. However, this modest raise may not fully offset rising inflation, which reached an annual rate of 3.5% in July. Some industries, such as aerospace and defense, are expected to offer larger raises, while others like telecommunications anticipate smaller increases.

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CBS News (US) logoCBS News (US)IndependentCenter4 hr. ago
"Peanut butter" pay raises are out, as employers shift to merit hikes

CBS News reports that more companies are moving away from 'peanut butter'-style pay raises, which provide uniform increases to all employees, and instead are adopting merit-based compensation strategies for top performers. According to a Payscale survey of over 1,300 HR professionals, only 32% of employers plan to offer across-the-board raises in 2027, down from 36% in 2026. The average planned base pay increase for 2027 is 3.5%, slightly higher than the 3.4% increase in 2026. However, this modest raise may not fully offset rising inflation, which reached an annual rate of 3.5% in July. Some industries, such as aerospace and defense, are expected to offer larger raises, while others like telecommunications anticipate smaller increases.

Bias read (Center): The article presents a factual analysis of corporate pay trends without overtly endorsing or criticizing specific political ideologies. It focuses on economic data and industry-specific variations rather than taking a partisan stance. While the discussion of pay inequality and employer strategy has

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