Appraisal letter
What is an appraisal letter?
An appraisal letter is an official document that an employer gives to an employee after a performance review cycle. It outlines the evaluation of the employee’s work, along with any changes to their salary, benefits, or role. It’s both a record of recognition and a formal update on compensation or responsibilities.
What is the purpose of an appraisal letter?
The main purpose is to:
Communicate feedback clearly:
Provide employees with a clear understanding of the performance reviews and what is expected of them.
Acknowledge employees' contributions:
Recognize and reward employee contributions so they know they are appreciated.
Share compensation changes:
Inform employees about salary revisions, bonuses, promotions, or job status.
Serve as a formal record:
Keep track of appraisal records for future reference.
Boosts morale and motivation:
Encourage and motivate employees by highlighting their strengths and supporting them where they can improve.
What are the different types of appraisal letters?
- Salary increment letter: Informs employees about an increase in pay.
- Promotion letter: Includes a new role or designation along with revised pay.
- Bonus/variable pay letter: Mentions performance-based bonuses.
- Recognition letter: No pay change, but acknowledges exceptional performance.
What are the common mistakes to avoid when drafting an appraisal letter?
Steer clear of these common mistakes when creating your letter:
Lack of specific examples
Avoid vague assessments by providing concrete examples of achievements and improvement areas. This gives the appraisals greater credibility and clarity.
Failing to address employee concerns
Prevent the potential negative impact of unresolved concerns by actively addressing employee feedback or grievances during the appraisal process.
Neglecting consistency
Use consistent formats, grading scales, and compensation details to avoid any confusion or disputes.