The hype around so-called “peanut butter” raises that would distribute equal pay to all workers is coming to a head as AI divides the workplace into superusers and laggards.
Companies have long given raises based on performance, but a study earlier this year suggested that this trend is changing. About 44% of employers said they are planning or considering giving equal pay raises to employees this year, according to a survey by compensation software company PayScale.
But a new report by consulting firm Mercer shows that this trend hasn’t really worked. A recent study by consulting firm Mercer found that only about 4% of employers in the U.S. use this method to give raises.
One reason for this could be the impact of AI on the rapidly changing workplace. Just under 60% of business leaders say technology is key to their business strategy, and some companies are encouraging their employees to follow suit, according to a recent report from advisory, tax and assurance firm Baker Tilly.
Google is starting to incorporate the use of AI into performance reviews for software engineers, but managers have discretion over how they are evaluated. of wall street journal It was reported earlier this year. Meanwhile, Accenture CEO Julie Sweet said last month that employees need AI fluency to advance.
Still, some white-collar workers are resisting. A global survey of more than 3,700 executives and employees conducted by SAP subsidiary WalkMe found that 54% of employees bypass their company’s AI tools to perform tasks manually, and the remaining one-third are hesitant to use AI due to the complexity of their work.
But another group of workers responded wholeheartedly to management’s push to implement AI. These AI “super users” were three times more likely to receive a promotion or raise in the past year, Dan Chauvel, managing partner at Workplace Intelligence, previously said in a statement. luck.
PayScale’s report said the disparity among employees calls into question the thinking behind “peanut butter raises,” which seek to address some of the criticism that merit raises are subjective and prone to bias.
Hannah Yardley, chief people and culture officer at Achievers, a software company that tracks and rewards employees, says that while on the surface raises may seem equal across the board, high achievers and AI super users may not see it that way.
“When you’re told you’re getting paid the same as everyone else or doing the same work as everyone else, it feels equal but unfair when you’re contributing more to the outcome of what you’re asked to do,” she says.
Mercer senior principal Mark Bowling added that in addition to performance, factors such as market competitiveness and internal capital also play a role in determining pay.
“Pay equity often involves more than equal treatment,” he said. luck.
Yardley said organizations that want to take advantage of AI need to introduce performance-based pay increases because not all employees contribute equally, but they also need to constantly recognize employees who go above and beyond so others in the organization understand the company’s priorities.
“Not all jobs are created equal, so organizations need to differentiate themselves to be able to set the standard for what value actually means in the way they deliver,” she said. luck.
