An appraisal letter is the formal document an employee receives after their performance review, outlining their rating, feedback and any changes to salary or role.
What is an appraisal letter?
An appraisal letter summarises the outcome of the annual performance cycle. It usually includes the employee’s performance rating, key feedback from their manager and details of any salary revision or role changes. Many organisations issue appraisal letters once the review process is complete and budgets have been finalise.
The letter helps employees understand how their work was assessed over the year and what’s expected going forward. Some companies also include information about bonuses, variable pay or development goals for the next cycle. The tone is typically clear and straightforward so employees know exactly what has been decided.
Appraisal letters are an important part of communication during the performance cycle and help create transparency around growth, recognition and future expectations.
Things to know
- Appraisal letters share the results of the annual performance review
- They often include ratings, feedback and salary or role changes
- Some letters also mention bonuses or variable pay
- The document helps employees understand expectations for the next cycle
- Organisations issue appraisal letters once reviews and budgets are finalised
- Clear communication helps employees see how their work connects to broader goals
FAQs
When are appraisal letters issued?
Usually after the performance review cycle and salary‑revision process are completed.
Do all appraisal letters include salary changes?
Not always — it depends on company policy and the employee’s performance outcome.
Can appraisal letters mention future goals?
Many do, especially when organisations want to set expectations for the next cycle.
Are appraisal letters part of official records?
Yes — they’re usually stored with the employee’s performance documentation.
