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

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. Whether you're an HR pro, a manager who dreads comp season, or just someone who's ever gotten the exact same raise as the guy who does the bare minimum, you'll leave with: Highlights: [00:00] AI cold open [02:16] Foster dog & pee-shoe saga [07:22] Jewelry box mishap [09:16] Topic: peanut butter raises [11:08] The stats [12:01] Why companies are pulling back [13:24] Managers avoid pay talks [16:39] Sponsor: HR Collective [18:06] Exec accountability gap [22:55] COL vs. COL vs. merit [25:50] AI vs. human HR [33:46] Bias & "top performer" [36:12] The prediction 🎧 Hit play because nobody's getting a real raise until somebody learns to have an uncomfortable conversation. Visit our website: RISE Human Resources Book a call: 30 Min HR Consultation Follow us on Instagram: WTF is Business Casual