A recent survey of over 700 HR leaders opines that an organisation’s feedback and more human-centered approaches can lower recruitment and retention challenges. Moreover, 89% of HR leaders agree that employee recognition programs and regular performance reviews enrich employee experience and are vital to organisational success. Performance appraisals have therefore become an integral part of jobs in India.
However, any performance appraisal is incomplete without an appropriate appraisal letter. Typically, the HR department of any company issues these letters to the team members and employees. However, if your organisation is new to drafting appraisal letters, you have come to the right place. In this blog, we will explore how to write an appraisal letter, the important features of appraisal letters, the best tips to write an appraisal letter, and a few formats of these letters.
What Is An Appraisal Letter?
Appraisal letters are tools that employers use to show their relevant employees that their work is valued and recognised. The letter is rolled out simultaneously during the appraisal process and talks about an employee’s strengths, achievements, and also areas of improvement. All hard-working professionals and top performers await appraisal letters that act as a testament that their superiors are noticing and acknowledging their hard work.
Other important aspects of the letter are details like awards, recognition, salary hikes, bonuses, promotions, and so on. Therefore, the key objective of the appraisal letter is to evaluate and reward deserving people. This letter helps an organisation set up future tasks and goals. Appraisal letters are final proof of appreciation sent by the HR or the management.
How To Write An Appraisal Letter?
An appraisal letter is a formal letter that a company extends to the most deserving employees and therefore needs to be clear and effective. It serves as a benchmark and motivation for other team members. You can incorporate the following essential guidelines and tips to write an appraisal letter:
- An appraisal letter is an official document; therefore, it must be written or printed on the company’s distinguished letterhead. This will reflect the importance and gravity of the letter being shared.
- Begin the appraisal letter by genuinely recognising the employee’s work, efforts, and notable accomplishments. While praising an individual, maintain a respectful and professional tone.
- To add depth to the letter of recognition, highlight the employee’s achievements during the appraisal cycle.
- Specify the new details clearly like updated salary, increment, bonus, promotion, revised CTC, and the effective dates for their effectiveness.
- The letter must also clearly offer constructive criticism towards the end of the letter. Mention the areas where you expect the employee can work to develop his skills. Remember to be clear and specific and avoid harsh language or negative connotations.
- The conclusion of the letter can talk about the company’s expectations from the employee for future endeavours. While these expectations must be discussed in person, you can outline this section briefly with a concise and direct approach.
- Lastly, express the company’s eagerness for continued successful collaboration with the employee in the future by emphasising the value and goodness they bring to the company.
- Courteous close the letter with a sign-off using terms like ‘Best Regards’, or ‘Sincerely’ followed by your name, company’s name, designation, and signature.
Key Tips To Write An Appraisal Letter
With the above-mentioned guidelines you can learn how to write an appraisal letter but if you wish to refine it further to leave a lasting impact; you can include these quick tips:
- Keep it clear and concise: Keep the appraisal letter concise with clear and concrete highlights of employee’s achievements. Include examples of opportunities for development and growth.
- Use the balanced approach: To provide a comprehensive and fair evaluation of the employees’ performance, keep a balanced approach in the letter. While acknowledging the work and accomplishments of an individual, highlight their growth potential and opportunities.
- Mind your language: One of the most vital tips to write an appraisal letter is to avoid the use of harsh words. Use positive language with constructive statements.
- Set goals: Mention quantifiable and attainable goals that will encourage the employees. Realistic growth parameters must be highlighted in the letter.
- Mention developmental opportunities: You can enrich employees’ engagement by mentioning possibilities of skill-enhancement training that can lead to promotion as well as professional development.
- Personalised feedback: Customise your comments and address the individual directly by acknowledging their contributions and addressing specific areas for improvement.
Common Mistakes To Avoid In Appraisal Letters
- Lack of specific examples or generalised assessments: Try to personalise each letter to enhance its effectiveness. Make it clear and credible.
- Making it a one-way communication: Avoid a unilateral or one-sided tone in the letter. You can ask for employees perspectives and their expectations as well. This will foster open communication and collaborative and comprehensive appraisal.
- Using harsh or negative language: Prevent demotivating statements and resorting to harsh comments. These can adversely impact the morale of employees.
- Inadequate record or documentation: Strive to maintain thorough records and documentation to highlight the achievements in the letter. Ensure performance metrics and incidents to make reliable appraisal letters.
Few Samples Of Appraisal Letters
Sample 1: Appraisal Letter For Salary Increment
Company Name |
Sample 2: Appraisal Letter For Award And Recognition
Company Name |
Sample 3: Promotion Appraisal Letter
Company Name |
Conclusion
Appraisal letters act as powerful motivators that instill much-needed confidence among employees. It is a tool that can drive the team members towards excellence in their job roles. It is one of the prime duties and responsibilities of every employer who provides jobs in India to conduct a fair assessment of each employee, provide appraisals, and recognise their dedicated service.
We hope that through this article you have learned how to write an appraisal letter and other valuable insights. By simply following our key tips to write an appraisal letter, you will be able to craft impactful letters that will aid in fostering a work culture of excellence and appreciation within your organisation.
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Frequently Asked Questions
Appraisals are significant to the organisation as it allows them to recognise and reward employees for their contribution to the overall working of the organisation and lead them to success. Appraisals are also important as they provide recognition to the employees that motivate them to perform better. Furthermore, better performance leads to the overall growth of the organisation.
Appraisal letters are issued in a specific period, often annually. They are typically provided to employees by the HR manager or department. These letters recognise the efforts of the employees and may even commend some of them on their exemplary performance. The acknowledgment, salary, increment, bonuses, and other perks provided to the employees in the letters serve as a motivational tool used by the organisation to encourage employees to perform better.
The typical inclusions of an appraisal letter are the date of letter issuance, employee details, and greetings in the first half. Below that the specific achievements and contributions made by the employee are recognised. This portion also talks about their key skill and qualities that are welcomed and recognised. The last half of the letter highlights the growth areas or weaknesses on which the employees can focus or work. Lastly, the closure para mentions the appraisal and acknowledgment again and is closed with the sender's signature.
The length of the appraisal letter varies with factors like designation, purpose, or performance. However, it is recommended that these letters be summed up within one to two pages. The letter must be concisely devised on point. While it is expected to highlight all the vital information, unnecessary elaboration can be avoided.
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