How you talk about remuneration matters: 5 tips for leader success

As a leader, you’re about to step into one of the most important conversations of the year: the remuneration review. These discussions go far beyond numbers on a spreadsheet. They’re moments that can shape how your team feels about their value, their future, and their place in your organisation.

Transparency, fairness, and emotional intelligence are more important than ever, how you communicate about pay can either strengthen trust or quietly erode it. It’s not just about saying outcomes—it’s about delivering them with empathy, clarity, and respect.

You might be navigating budget constraints, performance nuances, or organisational changes. You might not have all the answers. And that’s okay. What matters most is how you show up in the conversation. These moments are opportunities to reinforce your leadership, build deeper connections, and demonstrate that you see and value your team members.

So how do you prepare to lead these conversations with confidence, even when the message is tough? Here are five practical tips to help you navigate the human side of the remuneration cycle—so your team walks away feeling heard, respected, and motivated for what’s next. In addition, members can access our tools and resources on The Remuneration Review. 

1. Know the “why” behind the numbers

You don’t need to be a compensation expert—but you do need to understand the rationale behind the decisions. Whether it’s performance-based, budget-driven, or aligned with broader business goals, being able to explain the “why” helps your team feel respected, even if the outcome isn’t what they expected.

Tip:

Before your conversations, ask yourself:

• What message do I want to leave this person with?
• How can I connect this decision to their contribution and the bigger picture?
• Have I done my homework to prepare for the conversation and employee response?

2. Prepare for emotion, not just questions

Rem reviews can stir up a lot—pride, disappointment, confusion, even frustration. Your role isn’t to fix every feeling, but to create space for them. Listen actively. Acknowledge what you hear. And don’t rush to move on.

Tip:
Practice a few phrases like:

• “I can see this is disappointing—thank you for being honest with me.”
• “Let’s talk about what success looks like going forward.”

3. Make It a two-way conversation

This isn’t a one-sided announcement. It’s a chance to reflect, connect, and look ahead. Invite your team member to share their thoughts, ask questions, and talk about their goals.

Tip:
Use a simple structure:

• Recognise their contributions
• Review the outcome
• Refocus on the future

4. Don’t wait until the meeting to prepare

The best conversations happen when you’re not reading from a script. Take time to reflect on each person’s year—what they’ve achieved, how they’ve grown, and where they’re headed.

Tip:
Block out 30 minutes per team member to prepare. Jot down:

• Key wins and challenges
• Development areas
• One thing you want to acknowledge

5. Follow up—it matters

The review conversation is just the beginning. A thoughtful follow-up—whether it’s a quick check-in, a development plan, or a thank-you note—shows that you care beyond the process.

Tip:
Set a reminder to check in 2–3 weeks after the conversation. Ask:

• “How are you feeling about our chat?”
• “Is there anything you’d like to revisit?”

Leadership in action

The remuneration review isn’t just a process—it’s a moment of truth. It’s where your leadership becomes real, not through grand gestures, but through the way you show up in one-on-one conversations that matter deeply to your people.

These discussions are your chance to:

• Reinforce trust by being transparent and fair.
• Recognise contribution in a way that feels personal and genuine.
• Reignite motivation by focusing on growth and what’s next.

Even when the message is tough, how you deliver it can strengthen relationships and shape how your team sees their value and future in the organisation.

So take the time. Prepare with intention. Lead with empathy. Because in these moments, you’re not just talking about pay—you’re building culture, one conversation at a time.

Further information 

For assistance with your workplace matters, Members of Ai Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information.

Employers can also access our extensive Remuneration and Reward topic for helpful resources.