How to Write An Appraisal Letter to Motivate Employees

When it comes to evaluating job performance, there’s no one size fits all formula. A lot depends on how they are conducted. Performance reviews can either inspire employees to do better – or they could drive them away from your company. A well-written and empathetic appraisal letter can help employees identify growth opportunities and potential areas of improvement without harming the employee-manager relationship. 

Writing an appraisal letter is not easy. If managers get guidance on what an effective and comprehensive review looks like, it is helpful. 

In employee performance reviews, managers evaluate an individual’s overall performance, identify their strengths and weaknesses, offer feedback, and help them set goals.

Appraisal letter templates and appraisal evaluation

Appraisal letter templates are easy to access materials for performance reviews.

Here are three appraisal letter templates to help you set the right tone:

Appraisal Letter to Employee for Good Performance 

Template 1: Appraisal Evaluation Letter

Name of Employee


Company Name

Dear Ms.,

On behalf of the company management, I would like to extend our appreciation for the amazing work done by you on the various projects assigned to you in the past 6 months.

Your professionalism and dedication to the tasks were exemplary. Not only did you finish all projects on time but took care to keep the clientele’s recommendations and needs aligned.

Seeing your diligence, self-motivation and focus have been a source of motivation for the rest of the team as we see a positive air in the department. We are expecting another project of this intensity and would like you to head it to ensure its success following your ability to be absolutely dedicated.  

Additionally, we would like to inform you that you will be getting a performance bonus of one-month basic salary to be given next month.

Thank you once again for all your effort, especially since you worked 

weekends as well. 

Best Regards, 



Template 2: Appraisal Evaluation Letter


Name of employee



Dear Mr.,

RE: Appraisal Evaluation Letter  

As you are aware, an appraisal exercise was recently conducted, and this is the feedback on your work performance based on the appraisal performed. 

You have achieved a score of 8.5 out of a total of 10 appraisal metrics, which puts you under the Excellent rating of performance.  

Congratulations! You have done well for the past year, and the management is delighted to note your good performance. 

With the excellent rating, your increment has been determined at 15 percent of your basic salary, and the bonus for this year will be at 2 months your basic salary instead of one.

Do keep up the excellent performance in the future too.

Yours Sincerely

HR Head



Template 3 – HR Appraisal Letter Template

Employee name:


Company Name:


Dear Mr.,

In recognition of your performance and contribution to the organization during the appraisal period 2020-2021, your monthly CTC is being revised to …. w.e.f. (date)

Your revised Compensation and Benefits Structure is given below for your reference. 



Description Compensation ($)

Basic + PTR                

Leave Allowance            

Medical Reimbursement     

Retirement Benefits         

Annual Total               

The appraisal was carried out in consultation with your immediate manager and your performance in the past one year. We would like to bring to your notice a slight concern about the delay in turnaround time in your customer outreach program. Would you mind discussing any difficulties you are facing in the process with your marketing manager and providing us with requirements (if any) necessary to achieve a quicker outcome?

[Company name] is honored in having you on our team and looking forward to more dedication and hard work from you in the future.

Please feel to contact [insert name] if you have any questions regarding this Appraisal letter.

Yours sincerely,

Anna Verasai
Anna Versai is a Team Writer at The HR Digest; she covers topics related to Recruitment, Workplace Culture, Interview Tips, Employee Benefits, HR News and HR Leadership. She also writes for Technowize, providing her views on the Upcoming Technology, Product Reviews, and the latest apps and softwares.

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