When delivering news on compensation changes, give context to help people understand. Explain how it works, what % of an increase there is for your staff, and why this person has scored below or above. Explain your rewards philosophy. Don’t hide the details. Don’t sugarcoat, don’t promise, don’t use the occasion to deliver your feedback for the first time. Don’t give out a number without the context hoping the person won’t figure it out. Then listen, discuss, be there for your employee. People rely on their compensation changes as they see their life situation evolve. They’ve looked forward to this moment, and it’s a time you can be of much help.