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More firms get a taste for ‘peanut butter’ pay hikes

A new report from Payscale suggests that employers are increasingly considering “peanut butter raises” – an approach which involves uniform pay increases spread evenly across the firm rather than performance-based pay hikes. The report indicates that over 40% of organisations are adopting this method, rising to 56% among firms which expect to exceed their revenue goals. Critics argue that this method fails to recognise higher-performing employees while also rewarding lower performers.