Companies are dropping uniform “peanut butter” raises as performance‑based pay gains traction in the AI‑driven workplace

(SeaPRwire) –   The popularity of “peanut butter” raises—equal pay increases for all employees—is waning as AI reshapes the workplace into a divide between high-performing super users and those who lag behind.

While companies have long used performance-based raises, earlier this year studies indicated a shift toward more equitable compensation practices. According to a study by compensation software firm Payscale, about 44% of employers reported they either planned to or were considering distributing equal raises across their workforce.

However, a recent survey by consulting firm Mercer reveals that this trend has not materialized as expected. Only around 4% of U.S. employers are currently offering such uniform raises.

One key factor driving this shift is AI’s growing influence on modern workplaces. Nearly 60% of business leaders cite technology as central to their company strategy, according to a report from advisory firm Baker Tilly, prompting many organizations to encourage greater employee adoption.

In response, some major firms are integrating AI usage directly into performance evaluations. For example, Google has begun factoring AI proficiency into reviews for software engineers, with managers having discretion over how it’s assessed, as reported by The Wall Street Journal earlier this year. Similarly, Accenture CEO Julie Sweet stated last month that demonstrating AI fluency is now essential for career advancement within the company.

Despite these efforts, resistance remains among white-collar workers. A global survey by WalkMe—a SAP subsidiary—of over 3,700 employees and executives found that 54% deliberately avoid using their company’s AI tools in favor of manual processes, while another third express hesitation due to concerns that AI complicates their tasks.

On the other hand, a subset of employees has fully embraced AI. Known as “super users,” these individuals are three times more likely to receive promotions and pay raises compared to their peers, Dan Schawbel, managing partner at Workplace Intelligence, previously noted in a statement.

This growing gap challenges the rationale behind “peanut butter raises,” which were designed to address longstanding criticisms of merit-based systems—namely, that they can be subjective and prone to bias, as highlighted in Payscale’s research.

Even if across-the-board raises appear fair on the surface, high performers or AI super users may perceive them as inequitable, said Hannah Yardley, Chief People and Culture Officer at Achievers, an employee engagement and rewards platform.

“If you’re being rewarded the same way as everyone else—or told you’re doing the same job—you might feel it’s equal, but not necessarily fair—especially if you’re delivering significantly better outcomes,” she explained.

Other critical factors influencing pay decisions include market competitiveness and internal equity, added Mark Bowling, Senior Principal at Mercer.

“True fairness in compensation often goes beyond simple equality,” he emphasized.

Since not all contributions are equal, organizations aiming to leverage AI effectively should adopt performance-driven raises. They should also consistently recognize exceptional efforts so that all employees understand what behaviors and achievements the company values most, Yardley advised.

“Not all work is created equal,” she concluded. “For organizations to succeed, they must differentiate based on value delivered—clearly communicating what excellence looks like in practice.”