Employee performance letter is often called an appraisal letter, but these two are different. Performance evaluation is a larger concept that covers both strong and weak professional areas, while appraisal focuses on positive aspects alone. In other words, both employee appraisal and reprimand letters are parts of a larger performance evaluation review.
Since few people enjoy reprimanding colleagues (and are even less happy to receive a reprimand), regular performance evaluation can help HRs and team leads acknowledge their colleagues’ strengths, guide them to increased performance, and keep their teammates motivated through consistent appreciation and constructive feedback.
Below, we will explain why a performance letter is so important for boosting team productivity and morale, when the right time to send such an evaluation is, and offer a step-by-step guide on how to write it — including a sample template.
Why Performance Evaluation is Important
Today’s workspace is generally characterized by the lack of constructive feedback. Minimizing micro-management is a reasonable policy; but not providing any feedback at all is an even more dangerous trap HRs and lead managers should avoid. Of course, it is not that easy to calculate the ‘right’ amount of feedback, but anything that even remotely hits the target can have a huge positive effect on employee engagement and productivity.
More reasons to conduct regular performance evaluations include:
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- A chance to acknowledge achievements and make employees feel appreciated;
- Possibility to outline areas for improvement in a discrete, professional manner;
- Opportunity to conduct 360-degree feedback to foster teamwork and collaboration;
- A chance to minimize employee turnover and show every colleague that the company cares about their professional development;
- A means to align goals and boost employee morale because many professionals do not feel they receive enough feedback;
- Regular feedback can be very useful during the employee onboarding stage as a way to guide newcomers through job responsibilities and expectations.
Finally (but we hope it will not come to that), performance evaluation can ‘prepare the ground’ for employee offboarding if the person regularly fails to meet job expectations. All in all, regular feedback is one of the building blocks in the overall performance improvement plan, but it is important to time and phase it right for maximum effect.
The Best Time to Send Performance Letters
So, what is the best time to conduct an employee performance evaluation — besides onboarding and offboarding? How often is feedback necessary? Opinions differ here — some studies show that over half of employees welcome feedback on a weekly basis. But, of course, you cannot conduct a detailed evaluation every week. Annual performance reviews don’t seem to work either, so it makes sense to focus on factual achievements rather than calendar dates.
For example:
- Completion of a significant project that required teamwork;
- Introduction of new projects and policies as a way to celebrate past achievements;
- Biannual or quarterly reviews as a way to check in;
- Company expansion or restructuring.
Note that an upcoming company reorganization is a very stressful time for employees, especially if the management is considering layoffs. So, it is important to keep evaluations as positive and professional as they could possibly get.
Here are some tips to make the evaluation letters less intimidating for the recipients:
- Always state that the performance evaluation applies to all employees and is part of a regular/new company policy;
- Start and wrap up on a positive note;
- Be very specific in outlining weak areas and give actionable steps on improvement possibilities;
- Avoid comparison with other employees and always focus on the recipient;
- Always stick to the sandwich approach when providing critical feedback;
- Remind the recipient that the management is open to questions and suggestions.
Most importantly, be truthful and consistent when sending evaluation letters. If this is a general policy, all colleagues should receive the feedback, and not just a few select people in a given department. Remember, the end purpose of regular evaluation letters is to boost morale, not to decrease it.
Top Points to Include in an Employee Performance Letter
Here are the main points that have to be included in a performance letter:
- Standard greeting: the standard practice is to start this letter with the formal ‘Dear Mr./Ms.’ opening.
- Quick intro about the purpose: explain why you are writing the letter — for example, regular review, introducing a new performance feedback evaluation for all team members, etc.
- Explanation of rating criteria (if any): if your evaluation has a numeric rating, you should explain the logic and mention that it applies to everyone on the team.
- Key reviewed areas (with ratings): after explaining the logic behind rating criteria, jump straight to the point. Create a list of 3-5 areas under review (communication, professionalism, teamwork, or other professional duties), and mention a few words as to why each area received this rating.
- Top achievements in the reviewed period: this part is optional for evaluation letters but is an absolute must when writing a performance appraisal. Mention specific project details and accomplishments here. Provide as much detail as necessary.
- Strong areas: technically, this part is also optional, but you should consider including it if you also want to mention areas that require improvement. The performance feedback cannot be all about reprimanding, so use this section to sweeten the pill if the criticism is about to follow.
- Areas that could be improved: here, tact is everything — stick to a neutral tone and stay as professional as possible. Ideally, you should outline the performance improvement plan here, if possible. Compliment the achievements, tactfully mention the areas that could be improved, and offer a few suggestions on how exactly an employee could improve them.
- Appreciation and closing: before you wrap up, you can highlight possible career opportunities, upskilling programs, and other resources for employee professional development. If none are available, simply say that the management is always happy to answer any questions the employee might have.
Employee Performance Letter: Sample Template
Now, let’s see how employee performance feedback can look in practice. Here is a sample template for a well-performing financial analyst:
[Your Company Letterhead]
[Date]
[Employee’s Name]
[Employee’s Address]
Dear [Employee’s Name],
As part of our commitment to recognizing and valuing our employees, I am pleased to provide you with feedback on your performance over the past [time period].
To make this performance evaluation as transparent as possible, we use standard evaluation criteria for all employees, grading performance on a scale from 5 to 1, where:
- 5 exceeds expectations, meaning an employee shows excellence and high initiative in all job responsibilities
- 4 above expectations, meaning an employee successfully meets expectations and occasionally exceeds them
- 3 meets expectations, meaning an employee successfully accomplishes all primary responsibilities without distinction
- 2 below expectations, meaning an employee cannot accomplish primary job responsibilities in at least one area
- 1 unsatisfactory, meaning the employee’s work is unacceptable and requires immediate improvements
With great pleasure, I assess your overall job performance as above average. More specifically, your areas of excellence include:
- Financial analysis — 5: Your analysis of complex financial data has been instrumental in guiding our company executives toward informed business decisions.
- Strategic planning — 4: Your strategic thinking and foresight have proven crucial in addressing clients’ unique needs and challenges.
- Client Relationship Management — 4: Your exemplary skills in building and maintaining client relationships have resulted in increased customer satisfaction and loyalty.
- Data Interpretation —5: Your skill in interpreting complex financial data and translating it into actionable insights has greatly contributed to informed decision-making within the whole organization.
- Timeliness and Accuracy — 3: Your commitment to delivering accurate financial reports within reasonable deadlines has significantly enhanced the efficiency of our financial team.
I am equally proud to note your key achievements in:
[List any specific achievements or projects in a bulleted or numbered list]
I am happy to compliment your professionalism in the following key areas:
[List any specific skills or acknowledge based on positive feedback received from other team members].
Potential areas of improvement include:
- Working on tight deadlines when circumstances require it. While your time management skills meet expectations, unexpected development occasionally requires extra effort and overtime, which will always be compensated for.
- [Constructively mention any other areas for potential improvement and, if possible, offer actionable steps on how to achieve it.]
Your dedication to maintaining a high standard of work and team spirit has greatly contributed to our financial operations.
Thank you for your hard work and commitment. Should you have any questions or wish to discuss your career goals further, feel free to schedule a meeting with [mention relevant contact person or department].
Best regards,
[Your Name]
[Your Position]
[Company Name]
[Contact Information]
Conclusion
Employee performance letters offer HR managers and team leaders an opportunity to acknowledge their colleagues’ performance and highlight any areas that might need improvement. In the worst-case scenario, they send a warning to underperforming employees and simplify the offboarding process should it ever come to that. But hopefully, it won’t because timely performance evaluations encourage employees to succeed, keeping them engaged and motivated.
Speaking of motivation, we have a separate post on how corporate culture affects employee engagement and productivity. It lists the best strategies on how to promote positivity and collaboration in the workplace, so give it a read if you want to empower your team for success.
