Bosses Boost Pay for Star Performers, Ditch Raises for Others (1)

Didn’t get a pay bump this year? Maybe that’s because you weren’t the best.

After years of doling out so-called “peanut-butter raises” that spread modest pay increases around to all staff, more bosses would rather devote their budgets to giving chunky wage hikes to their stars, according to a recent Korn Ferry analysis. The reasoning, compensation experts say, is that employees with in-demand skills can pick up and leave if they don’t feel valued. For everyone else, at a time of white-collar layoffs, simply getting to keep a job is its own reward.

The frantic race to retain coveted talent in booming sectors like ...