In 2026, 44% of companies are expected to implement “peanut-butter” pay raises, providing uniform increases across the workforce rather than merit-based raises, according to Payscale. While this approach simplifies administration and reduces bias concerns, it may demotivate top performers. Smaller companies are offering higher raises (4%) compared to larger firms (3%), particularly in industries like construction and technology, which are responding to talent shortages. Many younger job seekers are gravitating towards blue-collar roles perceived as more stable amid automation fears.
