Companies are abandoning ‘peanut butter’ raises as pay-for-performance takes over the workplace in the AI era |
Companies are abandoning ‘peanut butter’ raises as pay-for-performance takes over the workplace in the AI era
The hype around so-called “peanut butter” raises that distribute equal payments to every worker is falling flat as AI divides the workplace into super users and stragglers.
Companies have given out raises based on performance for years, but studies from earlier this year suggested this trend was shifting. About 44% of employers said they either planned to or were considering giving out equal raises to their employees this year, according to one study by compensation software company Payscale.
Yet, a new report by consulting firm Mercer shows this trend hasn’t actually panned out. Only about 4% of employers in the U.S. are giving out raises in this way, according to a recent survey by consulting firm Mercer.
Part of the reason why, may be AI’s influence on a rapidly changing workplace. Just under 60% of business leaders say technology is key to their business strategy, according to a recent report by the advisory, tax, and assurance firm Baker........