After conducting a performance review, employees receive an appraisal letter. When done right, it can be a powerful way to motivate workers and help the company be successful. The human resources department of a corporation often hands out appraisal letters.
However, you’ve found the ideal location if writing appraisal letters is not your strong suit. This blog explains how to write an appraisal letter and provides some samples you can inspire from.
Appraisal Letter: Meaning
In an appraisal letter, the employer says how much they appreciate the employee’s work and how valuable they are to the company. In a nutshell, it indicates their efforts are paying off, and the result boosts morale.
An employee’s strengths and areas for improvement are discussed in an evaluation letter. Besides highlighting the employee’s strengths, this method also emphasizes areas where they might improve in preparation for the next performance review.
The Objective of an Appraisal Letter
The main goal of an evaluation letter is to give a fair assessment of an employee’s work over the past year. The HR team would start the evaluation process by providing workers with evaluation forms so they could give direct feedback on how they did on the job.
The human resources department may schedule one-on-one meetings with employees and their managers to discuss progress, obstacles, and goals.
They can suggest ways to improve future performance and establish work goals within reach. In addition to boosting the worker’s self-assurance, morale, and potential for professional and personal development, this kind of feedback is also very motivating.
Types of Performance Appraisals
Even though the purpose of all evaluations is the same, every company has its unique method of rating employees’ performance.
Let’s examine the different kinds of evaluations:
- Self-Appraisal
A self-appraisal letter is the annual evaluation of one’s performance. Employees are now encouraged to evaluate their work to provide a more accurate picture of their professional status and job satisfaction.
This gives you more control over your professional growth and less reliance on your bosses to hear about your wins and losses throughout the year.
Self-evaluation lets both the employee and the employer participate in the evaluation process so that both sides can agree.
- The 360-Degree Appraisal
In a 360-degree appraisal, the person is judged based on what their boss, peers, direct reports, and customers say about them. The performance review is a group project in which subordinates, supervisors, and other employees have a say.
Alternatively, it provides a comprehensive overview of your yearly review from multiple perspectives. Managers at middle and upper levels can use the 360-degree appraisal to assess their leadership skills, team relationships, and personal character.
It figures out yearly performance by putting more weight on how well people are managed and less on how well individual goals are met.
- Manager Performance Appraisal
When a manager conducts an evaluation based on their observations, it is called a “manager performance appraisal.” Self-appraisal letters and a 360-degree appraisal are common additions to manager evaluations.
Managers discuss your wins and losses during the review period to find a good middle ground.
Planning for the future may involve more than analyzing the past.
It’s a great way of evaluation since it encourages open communication between you and your manager of record. Manager performance reviews are a great way to open up lines of communication with your superiors.
You Must Read: Select the Best Survey Tool: SurveyMonkey vs Google Forms
How to Put Together an Appraisal Letter?
Clarity and inspiration are two things an employee might take away from a written evaluation.
However, make sure you adhere to the suggestions given below:
- This letter is a formal business communication and should be printed on the company’s letterhead.
- The letter should begin with genuine compliments on the employees’ performance and the evaluation process results. Maintain an appropriate level of professionalism and politeness while giving praise.
- Maintain a clear and concise tone. The evaluation letter will highlight the employee’s most impressive accomplishments.
- Specify the workers’ new salaries, new base salaries, new CTCs, new increments, and the date the raises took effect.
- Remember to include any pay raises or bonuses employees have earned.
- You might conclude the letter with some constructive feedback depending on the employee’s progress during the cycle. For the employee to improve due to this criticism, it must be clear and concise.
- Conclude the performance review letter by describing the next steps for the employee. This segment should be straight and brief. The expectations should be communicated in person.
- Emphasise that you and your firm are excited to continue working with the individual.
A Sample Appraisal Letter Format
The following is an example of the format human resources departments typically use for performance appraisal letters:
To,
Employee name
Work designation
Company name
Location
Appraisal letter date
From,
Manager name
Work designation
Company name
Location
Subject: Appraisal Letter for performance evaluation
Dear Mr./Ms. Name of Employee,
It is with great pleasure that we send you this letter of appraisal. Your contributions have helped our business succeed, and we are grateful for what you have done.
In 20XX-20XX, you have excelled in every way imaginable. In acknowledgement of this, we’ve decided to enhance your compensation by Rs. XXXXX. It will start at the beginning of next month.
Thank you for devoting so much time and energy to your work. We are incredibly pleased to have you as a team member and look forward to your future contributions.
Please email me or visit my office if you have any questions.
Regards,
Manager name
Manager
Company name
The above-mentioned is an appraisal letter sample. You can download the sample letter for your reference.
Conclusion
Appraisal letters help employees better understand and meet the company’s expectations. It provides an opportunity for workers to develop both personally and professionally.
Last but not least, paying attention to what your staff has to say is always in style. Employees are more invested in their job when they sense that their supervisor genuinely cares about them and their performance, activities, and issues. Furthermore, an appraisal is an excellent tool for conveying to staff how much you value their contributions.
