Across-the-board raises reshape 2026 compensation
A growing number of employers in 2026 are ditching merit-based pay bumps in favor of fixed, across-the-board raises—dubbed 'peanut butter raises'—with roughly 44% planning uniform increases and 16% newly implementing the approach. Pay budgets are still targeting about a 3.5% bump, and 48% will continue performance-based raises, but the shift aims to ease inflation pressures for low-wage workers amid a slower labor market. High-profile companies like Starbucks and Walmart illustrate a mix of flat-rate raises and top-talent pay to attract and retain staff, reflecting a K-shaped economy where some earners rise while others struggle.