Appraisal letter is an HR letter issued to employees after their performance appraisal cycle to appraise their performance.
When it is about appraisal letter, we should discuss in detail-
As an HR professional, appraisal season or cycle is one of the most crucial times of the year. From evaluating the performance of your employees during the cycle to issuing appraisal letters, HR professionals have a major role to play.
What is an Appraisal Letter?
Appraisal letters are meant to notify or appreciate employees for their work performance. Such letters are issued by HR departments after reviewing their aligned KRAs and KPIs.
Appraisal letter is a tool of encouragement and motivation. This letter builds trust among employees, offers them a sense of achievement and lets them feel their value in their workplace.
Every letter issued by the HR department has a specific purpose and information. In salary appraisal letter, commonly included information-
- Overview of key responsibility areas (KRAs)
- Evaluation of key performance indicators (KPIs)
- Summary of strengths and weakness in that specific review cycle
- Description of monetary appraisal, promotion, perks, bonuses and other benefits
- Suggestion for upskilling or certifications
For better understanding, let’s have a look at example below:
Dear [Employer’s Name]
On behalf of <company’s name>, I am writing this letter to offer performance insights of this review cycle [Start Date] to [End Date]. We appreciate your contribution to the success of your team and achieving the goals of our organization.
Your ability to <list achievements> is exceptional and will set the benchmark for other team members. As there is always a scope of improvement, you too must work on <list area for improvement>. We trust your dedication and determination.
We want to recognize your commitment to the company and recommend you for <promoted position> with a salary increase of <amount> along with <other benefits>. We believe this promotion will motivate you to achieve better and work smarter for overall success.
You are an asset to our organisation and your commitment is appreciable.
Congratulations!
Sincerely
<HR representative name>
When and how is an Appraisal Letter Typically issued to an Employee?
Appraisal letters are mostly sent after the performance appraisal cycle, specifically after face-to-face discussion with employees, their leads and the HR department.
Appraisal letters are typically issued on an official email id of employees.
Appraisal letter is basically an official document that summarizes the rewards and recognition, addresses gaps in goal setting and achieving and strengthens the confidence of employees after performance review, specifically performance appraisal process.
Though verbally every performance process could be delivered, but as a part of process, requirement of official process and document of authority- appraisal letters are issued to employees.
When appraisal letter is issued, it closes the review process of presents and offers the head start for the next cycle.
Yes, an appraisal letter is different from a performance evaluation or review letter.
An appraisal letter is issued to notify rewards, recognition and promotion after reviewing the performance of appraisal cycle.
On the other hand, performance review letter communicates that aligned goals are up to the mark or not. It is a part of feedback mechanism to address the gaps and optimize the current strategies.
From goal setting to sending appraisal letters, every process and workflow can be optimised to increase efficiency of HR and save time with modern technology.
With the latest HCM suites in the market, HR professionals can-
- Simplify OKR mapping by utilizing pre-defined templates for goal setting and auto triggering goals as per appraisal cycle setup
- Track real-time progress of workforce with auto feedback and one-on-one meetings
- Improve precision of performance review process with various tools like bell graphs, 9 box matrix, etc.
- Send appraisal letters in a click and in bulk by editing the templates offered by HCM suite
- Analyse employees’ performance with metrics, trends and bar graphs
Not just this, HCM suite specifically offering performance management system can help you easily compile data for year-end review, reducing 90% manual efforts. Also, it makes the whole process transparent and ultimately improves the employees’ confidence.
Summing Up
Appraisal letters are the epitome of trust in employees’ performance.
Make sure appraisal letters issued by you must have an appreciating tone, tinge of personalization and add value to your feedback.