Reacting to complaints about the subjectiveness of performance evaluations and admin burden of managing compensation plans, a new Payscale report says 16% of companies are implementing flat “peanut butter” raises, 9% say they already employ the pay strategy, and another 18% of organizations are considering it.

I believe in pay for performance, and the “peanut butter” companies should fix their talent management practices. What do you think of this as a performance strategy?

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It’s highly unmotivating when you know you will get the same 3% raise every year, regardless of what you do. And so will coworkers who may or may not be doing a good job. And everyone at your level gets the same bonus, scaled to pay.

The only conclusion I can draw from this is that performance is unimportant. Show up. Do your job well, just good enough, or poorly. You will get a raise. Unless you’re really super bad it will be 2 or 3%. Yawn.

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