Appraisal Letters: Meaning, Format, and Key Components

If you are wondering what the appraisal letter meaning is, it is an official communication document given to an employee from the HR department that acknowledges and evaluates the employee’s performance over a specific period and is usually issued annually or bi-annually.

The documents serve as proof of recognition and constructive feedback on employees’ performance.

The purpose of the appraisal letter is to inform employees about their performance achievements and motivate them for further development. The letter usually contains information regarding performance evaluation, salary increments or adjustments, areas of improvement and any promotions or changes in designation.

Also Read: Employee Benefits in India: All You Need To Know

Here are the key components of the appraisal format that need to be included.

• Congratulations Message: It is the starting message acknowledging employee’s contributions and congratulating them for their achievements.
• Employee Information: It mentions the employee’s name and their designation to personalise the letter.
• Performance Review: This section provides concise yet detailed information about the employee’s accomplishments during the evaluation period. Specific examples can be used if necessary.
• Salary Increment or Promotion (If applicable): This section clearly mentions any changes in salary, designation or responsibilities.
• Constructive Feedback: It mentions the areas where an employee can improve their performance, suggests ways to improve and provides resources if necessary.
• Closing Remarks: Conclude the letter with positive remarks about their performance to date and show confidence in their work for future success.

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• General Performance Appraisal: This is an appraisal letter type that mentions standard performance evaluation based on key performance indicators.
• Employee Self Assessment: In this appraisal type, employees reflect on their performance.
• Manager Performance Appraisal: This is a manager-led performance appraisal focusing on employee achievements and areas for improvement.
• Project Evaluation Appraisal: The appraisal is based on the project evaluation.
• 360-Degree Appraisal: In this appraisal, employee feedback is gathered from necessary sources, such as the manager, colleagues and subordinates.

Here are some points to note before you draft an appraisal format.

• Always keep the appraisal letters professional and encouraging.
• Mention employee achievements, areas of improvement and feedback clearly.
• State the change in salary, designation and responsibilities in a specific manner.
• Always offer constructive criticism and politely mention the room for improvement.

Appraisal Letter Template

Here is an appraisal letter example that can be used to address employee appraisal.

Subject: Performance Appraisal for [Employee Name]

Dear, [Employee Name]

Your efforts and contributions to projects during the last evaluation period have not gone unnoticed. Your leadership qualities were especially noteworthy in completing the XY Project before the urgent deadline.

We are happy to acknowledge your performance and inform you of the possible salary appraisal. Keep doing the great work!

Sincerely,
[Manager’s Name]
[Company’s Name]

The appraisal letter is an important document for both employees and management. It clarifies employee performance, professional growth and compensation for contributions. Appraisal is part of the overall benefits that an employee is promised before being employed.

Another important benefit that every employee should look for before accepting an offer letter is group health insurance. A group mediclaim policy provides comprehensive coverage that provides health benefits to employees at affordable prices.

An employer-provided group health insurance plan includes various benefits, such as health coverage for employees and dependent family members, coverage for pre-existing diseases from day one, and customisable plan options.

Explore the different plans for business insurance in India with TATA AIG. Our plans offer extensive benefits, including group health insurance coverage, to ensure employees’ peace of mind and create a positive business image.

Also Read: Employee Health Insurance: Benefits and Coverages