{"id":6664,"date":"2026-01-27T10:13:20","date_gmt":"2026-01-27T15:13:20","guid":{"rendered":"https:\/\/www.successories.com\/blog\/?p=6664"},"modified":"2026-01-27T10:13:22","modified_gmt":"2026-01-27T15:13:22","slug":"why-your-2026-raise-might-feel-a-little-spread-out","status":"publish","type":"post","link":"https:\/\/www.successories.com\/blog\/why-your-2026-raise-might-feel-a-little-spread-out\/","title":{"rendered":"Why Your 2026 Raise Might Feel a Little “Spread Out”"},"content":{"rendered":"\n
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To say that the last few years of compensation have been a rollercoaster is an understatement, but as we look toward 2026, the landscape of how we pay our people is shifting yet again. <\/p>\n\n\n\n

Have you heard of the “peanut-butter” approach to pay raises? If not, you\u2019re certainly going to see it in action soon.<\/p>\n\n\n\n

New research<\/a> from compensation expert Payscale has found that more than four in 10 companies\u2014about 44%, to be exact\u2014are opting to give identical, across-the-board hikes rather than merit-based raises this year. It\u2019s a method of evenly spreading pay increases across the entire workforce, much like spreading peanut butter on a slice of bread.<\/p>\n\n\n\n

The good news is that pay hikes are expected to hold steady at 3.5% for 2026. But why the sudden move away from performance-based pay?<\/p>\n\n\n\n

The Logic Behind the Spread<\/strong><\/p>\n\n\n\n

For many employers, the move is born out of a desire for fairness and simplicity. Payscale noted that some organizations are worried that merit-based practices can be too subjective or potentially biased. Beyond that, let\u2019s be honest\u2014spreading pay hikes out evenly is much easier from an administrative perspective, which can save a company significant time and money.<\/p>\n\n\n\n

However, there is a catch. What does this mean for your culture of motivation?<\/p>\n\n\n\n

The Risk to Top Performers<\/strong><\/p>\n\n\n\n

While it’s easier to give everyone something, there is a real risk that your top performers will feel disadvantaged in that environment. If you aren’t differentiating based on performance, you might inadvertently discourage your best people from putting in that extra effort or going the extra mile.<\/p>\n\n\n\n

As Ruth Thomas at Payscale points out, base pay is not your only lever. If your budget is restricted, you absolutely should look at other ways to reward those who are truly moving the needle. It\u2019s about ensuring that your stars still feel seen and appreciated. Sometimes, a simple a well-timed employee gift<\/a> can bridge the gap when the general budget is tight.<\/p>\n\n\n\n

Size, Industry, and the Future of Work<\/strong><\/p>\n\n\n\n

Interestingly, the “peanut-butter” trend varies wildly depending on where you look. If you\u2019re at a smaller establishment with fewer than 100 employees, you might actually see a higher increase\u2014around 4%\u2014as they use pay more aggressively to compete for talent.<\/p>\n\n\n\n

We\u2019re also seeing a fascinating trend in specific industries where the demand for workers remains high:<\/p>\n\n\n\n