Comp and Coffee The hidden cost of peanut butter pay
Mar 15, 2026
Brittany Vogel, People Operations lead at LeapFrog Brands who builds HR and comp processes, and Marc Mullis, founder of Payformance Partners and compensation strategist, discuss the fallout from flat, one-size-fits-all raises. They tackle why finance loves simplicity, non-cash rewards and frequent spot incentives, protecting top performers on tight budgets, and the role of transparency and manager training in preserving trust.
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Peanut Butter Pay Creates Illusion Of Fairness
- Peanut butter pay spreads limited dollars evenly but creates an illusion of fairness that undermines performance differentiation.
- Payscale data shows 44% of companies using or considering flat increases while median 2026 base increase is 3.5%.
Use Technology Not Flat Raises
- Avoid defaulting to flat raises for administrative ease; invest in comp technology instead to keep differentiation.
- Marc Mullis recommends comp management software so finance and HR can see analytics and avoid gutting compensation programs.
Favor Frequent Small Rewards
- Reward performance more frequently with small, timely incentives instead of waiting a year for one large raise.
- Marc Mullis highlights spot bonuses and quarterly incentives align reward timing with performance and psychology.