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When managers can clearly explain the links between an organisation's financial performance, budget, and remuneration decisions, pay review conversations become an engagement tool rather than a source of disappointment, according to a leadership advisor.

Most employees understand that global uncertainty and rising costs are impacting their business, so employers shouldn't treat staff at any level "like idiots" at pay review time, says OnTalent CEO Natasha Olsson-Seeto.

Rather, when employees "feel like they're part of the story" when it comes to belt-tightening, they're more likely to take a less-than-ideal pay review in their stride, she tells HR Daily.

"What's really important is that organisations are very clear about what their strategic goals are, how they're performing, what impacts that performance, and how that impacts employees..."