What are peanut butter pay raises?
- Extra money you can only spend on Skippy
- Raises are performance-based
- Raises are spread around
- Another way to say COLA increase
Correct Answer: C
A “peanut butter” raise spreads increases across the workforce (rather than concentrating dollars only on top performers) and is more often used by employers with larger lower-wage employee populations.
While peanut butter pay increases may be gaining traction as a short-term way to help employees keep up with rising costs, merit pay is still a best practice. And compensation is not just pay. A strong total rewards strategy, which includes offering a competitive employee benefits package, not only enhances employee retention and satisfaction but also drives long-term business success.