Employers aren't abandoning performance-based pay raises after all.
Following backlash over workplaces doling out across-the-board salary increases, also known as "peanut ****** er" raises, rather than providing raises based on individual performance, more employers plan to step back from that practice next year.
The new data from compensation research firm Payscale shows employers are likely to favor more differentiated, merit-based pay. Just 32% of organizations are planning a peanut ****** er pay increase approach in 2027, down from 36% that actually gave one in 2026. "That's a significant drop-off," Ruth Thomas, pay equity strategist at Payscale, told Yahoo Finance.
Even better: Average pay ****** ps are expected to tick up. Employers plan a 3.5% average increase in 2027, up from 3.4% in 2026. That's on par with inflation but far below 2023, when workers scored pay hikes averaging 4.8%.
"We're starting to see some optimism — 30% of US organizations expect higher salary increases in 2027 from 2026," Thomas said.
#salary
Following backlash over workplaces doling out across-the-board salary increases, also known as "peanut ****** er" raises, rather than providing raises based on individual performance, more employers plan to step back from that practice next year.
The new data from compensation research firm Payscale shows employers are likely to favor more differentiated, merit-based pay. Just 32% of organizations are planning a peanut ****** er pay increase approach in 2027, down from 36% that actually gave one in 2026. "That's a significant drop-off," Ruth Thomas, pay equity strategist at Payscale, told Yahoo Finance.
Even better: Average pay ****** ps are expected to tick up. Employers plan a 3.5% average increase in 2027, up from 3.4% in 2026. That's on par with inflation but far below 2023, when workers scored pay hikes averaging 4.8%.
"We're starting to see some optimism — 30% of US organizations expect higher salary increases in 2027 from 2026," Thomas said.
#salary
5 hours ago
