Payscale: More companies eye 'peanut butter' across-the-board pay raises this year
Feb 22nd 2026
A Payscale preview shows growing interest in small, even raises as firms manage budgets, while nearly half of employers still tie pay increases to performance.
- 9% of organizations already give across-the-board raises, 16% plan to start this year, and 18% are considering it.
- 48% of surveyed organizations will continue tying pay increases to performance.
- Employers cite cost pressure, perceived fairness, and administrative ease for across-the-board raises.
- Compensation experts warn blanket raises can demotivate top performers and create future retention problems.
- Immediate effects on turnover may be muted by the current job market but could worsen when hiring rebounds.
- Employees are advised to ask about other benefits and quietly update resumes and LinkedIn rather than make abrupt job moves.