Peanut Butter and Pay Increases
What does peanut butter have to do with pay increases?? The peanut butter approach for pay increases gives the same pay increase to all employees regardless of their performance level. For example, if you have a 4% salary increase budget then everyone gets 4% across the board or very close to that. Having this approach is like a cost of living adjustment (COLA). This is not a recommended approach for the purposes of building a positive company culture and increasing employee retention, especially for your top performing employees.
We discussed different pay increases and compensation strategies on our recent webinar entitled “Fix Your Compensation Challenges” which is now available in podcast and video form. For more detailed information on compensation strategy, you can listen to or watch the compensation webinar by clicking the links below.
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