Peanut butter raises are officially out. Companies are abandoning equal-pay-for-all strategies as artificial intelligence reshapes workplace dynamics and performance metrics. While 44% of employers considered across-the-board raises, only 4% actually implemented them, according to Mercer's latest survey. The shift reflects a widening gap between AI super users and laggards. Employees embracing AI tools are three times more likely to receive promotions and raises, while those resisting automation fall behind. Google now factors AI usage into engineer reviews, and Accenture requires AI fluency for advancement. This performance-based approach addresses long-standing concerns about merit raises being subjective, but creates new equity challenges in the workplace.
