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WTF are Peanut Butter Raises?! Why Pay-for-Performance Keeps Getting Smeared

WTF is Business Casual · 2026-06-17 · 38 min

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Topics in this episode

HR compliancepeanut butter raisesmerit increasespay for performanceemployee compensation

Episode notes

Send us Fan Mail In this episode of WTF is Business Casual?! , Jenny and Sarah talk about the "peanut butter raise" debate that's been making the rounds in HR circles. A recent industry article predicts companies are about to ditch across-the-board raises in favor of rewarding top performers only, and Jenny and Sarah have some thoughts. Spoiler: they don't think it's actually going to happen, and they've got a decade of compensation-cycle scar tissue to back it up. From an executive team that wants to reward top performers but won't hold itself to the same standard, to the very real reason most managers would rather give everyone the same 3% than have an honest conversation about why someone didn't earn more - this one digs into why pay-for-performance sounds great in theory and falls apart the second a human has to deliver the message. Oh, and there's also a foster dog, a pee-soaked shoe that's been migrating around someone's house for weeks, and a jewelry box that may or may not have met its end in the trash. Priorities.

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