Bonuses, benefits, and raises can complete an employee’s on-the-job experience, but when there are no pay raises on offer, employee motivation starts to waver. A new study from recruitment firm Morgan McKinley found that nearly 70% of employees did not see a salary increase in the last six months. This is a jump up from the 65% who reported the same last year. A pay hike isn’t always built into an employee’s contract, but such terms are often prerequisites for ensuring employees continue to see growth in their careers and compensation for their continued commitment to the role.
Reassuringly, 48% also remain optimistic about receiving a pay increase over the coming 12 months, and this positive outlook may be key to sustained motivation. This remains true as long as they do see results ultimately, albeit a little delayed. Unfortunately, there is some evidence to show that pay raises aren’t as accessible today and could soon grow increasingly out of reach.
Data shows that 70% of employees have seen no pay raises in the last 6 months, but remain optimistic that a salary hike is on its way. (Image: Pexels)
Should Employees Gear Up for a Year of No Pay Raises? Not Just Yet, Although the Times are Changing
As Morgan McKinley’s 2026 Workplace Trends Report highlights, many workers report that there have been no pay raises in the last 6 months, but employers see the situation differently. Around 48% of the surveyed employers stated that they enforced organization-wide pay raises recently, although 52% admitted that new hires were offered flatter raises compared to the previous year. There does appear to be a difference between the employers who assert that raises have been provided and the experiences reported by employees.
There have been companies that have publicly shared their decision to skip on pay raises for 2026, but expecting resistance to such announcements, a higher number of employers have offered to hand out flat pay raises instead. This aligns with predictions from last year, where Mercer, for example, found that employers planned to hold base salary increases for merit at 3.2%, and total increases at 3.5% in 2026.
Peanut butter raises, or flat raises, are a form of hiking pay by a fixed number for all employees rather than offering differential, performance-based bonuses and adjustments. Critics of this shift worry that it could discourage employees from pushing harder to showcase their best performances due to the lack of concrete rewards for doing so. Those in favor of such strategies believe that flat raises equalize the playing field for all employees, rather than extreme fluctuations in worker compensation for the same role.
When Workers Expect Pay Raises, Employers Can Comply; Or Be Transparent
When there are no salary increases planned regularly, employees begin to grow restless. A number of employees work for reasons like personal fulfilment, career growth, recognition, and similar factors beyond pay, but in a world fueled by capitalism, there is no escaping the preference for satisfactory financial compensation for services rendered. Employee budgets are a key part of the planning for employers, with the estimates of upcoming yearly expenses altering budget allocations accordingly. If employers predict that salary increases are out of the question or that flat raises are the only solution, transparency can help employees manage their expectations accordingly.
An alternate set of benefits can be planned to fill in the gaps in the meantime, or employees can decide to go their separate ways without subterfuge or abruptly leaving at a time when filling that position may be harder. Conversely, when employers do have salary increases planned, albeit at a later date, communicating this to employees can help ensure that they don’t act preemptively and find work elsewhere. As with most things, empathy and communication can be the deciding factors between a healthy workplace relationship and an unbalanced one.
No Pay Raises At Work? What Can Employees Do?
If you work at an organization where the matter of pay raises hasn’t been explicitly discussed or if a scheduled raise has not come in just yet, then it might be time to advocate for yourself. If the organization has announced a lock on raises for the year, there may be little room to initiate such a discussion. However, if this is not a company-wide trend, it is best to first build a case for yourself to explain why a pay raise should be on the table. It is best to go in with a data-backed explanation rather than initiate the conversation without planning first.
If performance has been up to standards, but the company is unable to offer a monetary reward or raise, it may also be best to have alternate forms of compensation in mind that you can suggest to ensure that you are still able to make the most of your time at the organization. These discussions can be uncomfortable to initiate at work, however, there is no better advocate for your work than the results of your work and your conviction surrounding it.
If the company still says no to a pay hike or an equivalent benefit, then it might be time to sit down and re-evaluate how you feel about the role and the experiences provided by the organization to determine if shifting jobs may be ideal for you. This is a big decision to make, and it should be a rational one. Expecting a pay raise as soon as you join the organization may be unrealistic, as enjoyable as that scenario might be. Setting clear expectations for yourself and for the organization is the very basis of building a career, whether it’s in the industry or the business in particular.
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